## **BROOKVALE** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** **Registered charity No: 526086** **BARLOW ANDREWS LLP CHARTERED ACCOUNTANTS BOLTON** **BROOKVALE** ## **FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2022** ## **CONTENTS** ||**Page**| |---|---| |Trustees’ report|**1 – 5**| |Independent auditor’s report|**6 - 8**| |Statement of financial activities|**9**| |Balance sheet|**10**| |Statement of cash flows|**11**| |Notes to the accounts|**12 - 20**| **BROOKVALE** ## **TRUSTEES’ REPORT** The trustees present their annual report and the audited financial statements of Brookvale (the “charity”) for the year ended 31 December 2022. ## **Reference and administrative information** **Charity name** Brookvale **Charity registration number:** 526086 **Registered office and operational address:** Simister Lane, Prestwich, Manchester, M25 2SF **Registered office and operational address:** ## **Trustees** Mr S Pollock Mr S Larah Mr S Gold Mr D Savage Mr M Walters Mr A Waldman (appointed 1 October 2022) **Principal staff members** Lynne Richmond Executive Director and Registered Manager Carl Richmond Chief Executive Officer ## **Statutory auditor** Barlow Andrews LLP, Carlyle House, 78 Chorley New Road, Bolton, BL1 4BY ## **Bankers** HSBC Bank plc, 8 High Street, Manchester, M60 4AJ **Page 1** **BROOKVALE** **TRUSTEES’ REPORT (continued)** The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s trust deed, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).” ## **Structure, governance and management** ## Governing document Brookvale is a registered charity. The organisation was founded in 1951 and is governed by a trust deed adopted on 5 July 1992. ## Organisational structure Brookvale is governed by a board of trustees which meets monthly. The trustees, along with the principal staff members, are responsible for the strategic direction of the charity. They review wages and salaries annually and the remuneration of the key management personnel. The day to day responsibility and management of the charity rests with the principal staff members. The executive director has overall responsibility for delivering the aims and objectives of Brookvale. ## Trustees The trustees who have served during the year and up to the date of this report are as listed on page 1. ## Recruitment and appointment of trustees and board The recruitment and appointment of trustees at Brookvale follows the conditions established within the trust deed. The board is made up of executives (minimum 5, maximum 8) and committee members (maximum 6 members). The executive trustees are able to propose and appoint trustees who in their opinion would benefit the objectives of the organisation. ## Trustee induction and training All trustees undergo an induction process into the workings of Brookvale. The induction covers the obligations of board members and their responsibilities, main documents setting out the organisation’s mission, vision and values, financial background and key strategic priorities. ## **Risk management** The trustees are continuing to review major strategies, business and operational risks which the charity faces, and consider that the existing systems in place are adequate to manage identified risks to an acceptable level. ## **Objectives and activities** ## Principal objectives The principal object of the charity is the relief and care of persons with mental handicap learning disabilities. In furtherance of the above object, the organisation shall have the power: - (a) To establish and maintain residential homes and day centres for people and therein to provide remedial, occupational and social training. - (b) To establish and maintain holiday homes for the benefit of residents of such residential homes. - (c) To raise funds from public and private sources for the efficient performance of these objects. Each year the trustees review the objectives and activities of the charity to ensure they continue to reflect our aims and to provide a public benefit. The trustees are more than satisfied that they do. **Page 2** **BROOKVALE TRUSTEES’ REPORT (continued)** ## **Achievements, performance and future plans** As we began to move out of the global Covid pandemic, we entered into 2022 with hope and optimism. There had been a lessening of the stringent government guidelines in relation to the running of care homes despite the continued prevalence of the virus. The visiting regime changed to allow families to see their loved ones, yet within controlled parameters. Covid testing remained paramount and a necessity for staff, residents and visitors. All residents received all of their booster jabs when they fell due. These boosters and the purchase of the air purifiers in the previous year kept our vulnerable residents safe and well. Happily, during the course of the year government guidelines became less stringent. In September we were able to hold our first fully attended AGM since the start of the pandemic. This was a wonderful experience and was an opportunity to outline, to the families of our residents, what outstanding work had been done by the management and care staff to safely navigate Brookvale through Covid. It was outlined during the meeting that with future proofing in mind one of our longstanding care staff, Georgia McHugh, was currently in training to qualify as a Registered Manager to both assist Lynne Richmond and replace her when Lynne was ready for retirement. At that time Lynne would become an Executive and Georgia would become the Registered Manager. There was some sad news in that after many years of fundraising, the ladies committee was to disband. Those committee members who were present were thanked for their hard work and commitment. As the threat of Covid dissipated, a new threat to the ability to run care homes arrived in the way of Russia’s invasion of Ukraine. This had a massive impact in terms of the cost of power utilities. A cost-of-living crisis developed, and the cost of electricity and gas increased massively. The cost of running Brookvale increased dramatically, especially in conjunction with an extremely cold Autumn and early Winter. Running a 12 acre site is very expensive business. Expenditure at Brookvale increased significantly as continued maintenance and improvements were necessary during this year. The cost of fire protection is significant but a priority to keep our residents safe. We embarked on a project to replace all of the doors within Brookvale with state-of-the-art protection fire doors. This is going to be a long and expensive process, but is necessary for the extra protection of residents. I am happy to report that as of the end of 2022 we completed the replacement doors in East View. The plan is that doors will be replaced in remaining views next year, starting with North View. Expenditure was up generally in terms of the rise in the cost of utilities, increasing staffing cost due to pay rises and more use of agency staff. There was a large increase in insurance costs, too. The income we receive from the local authorities continues to diminish in real terms and we were increasingly reliant on the income we receive from our considerable property portfolio. To this extent it was agreed that we would buy another property to add to the portfolio. An appropriate one was sourced and in early 2022 the charity purchased 36 Clarendon Street in Whitefield. Also, we had more independent residents who had lived in our property at 153 Simister Lane, Prestwich come down to live in South View as their care needs had changed. This property was then re-adapted and placed on the rental market. It has now been added to our property portfolio and was tenanted in December 2022. Large amounts were expended in relation to the redevelopment of both 75 Simister Lane, Prestwich and 357 Heywood Road, Prestwich before they could be put back on the rental market. Both required new kitchens, bathrooms, carpets and full decoration, which came at a significant cost. As of the end of the year all properties are tenanted and remain a significant source of income. The charity still has significant investments with banking institutions and the increase in interest rates has benefited those investments. Sadly, during the course of the year we lost one of our longest standing residents, Angela White, who will be missed by all. We also mourn the passing of Joyce Pounder and Pamela Rose. All three had fulfilling lives under our care. The charity remains extremely stable under robust governance and management. The staff remain professional and committed. Morals remain high and the quality of care continues to be outstanding. We will try to overcome the difficulties and obstacles thrown in front of us, to ensure that the high quality of care for our vulnerable residents continues long into the future. **Page 3** **BROOKVALE** **TRUSTEES’ REPORT (continued)** ## **Financial review** The results for the year are shown in the Statement of Financial Activities on page 9 and our financial position at the end of the year is shown in the Balance Sheet on page 10. We had net expenditure of £503,339 for the year. After net losses on investments of £1,437 our net reduction in funds was £504,776. Expenditure on charitable activities exceeded income from charitable activities by almost £800,000, underlining the importance of having strong income streams from our investments and investment properties. We are also grateful, as ever, for the donations and bequests received each year. The financial position of Brookvale remains healthy and there are no going concern issues. ## **Principal funding sources** The majority of our income is generated from the provision of services to local authority social services departments, who are meeting the needs of individuals (most are fully funded). ## **Investment policy** The trustees are of the opinion that investments must be as safe as possible and therefore monies are placed with various banks in longer term fixed interest deposit accounts and checked on a regular basis. We also have monies invested with National Savings and Investments. In addition, we have some shares that were bequeathed to Brookvale over the years by various people and these have been retained to increase in value or to add the dividends to our income. We have also expanded our investment property portfolio. The rates of return are generally much better than can be achieved on bank deposits and other traditional investment types, and the investment is in properties which are unlikely to decrease in value. ## **Reserves policy** We are in a strong financial position, but the review of the year on page 3 demonstrates that we dare not be complacent and we must maintain our sound reserves base. There continues to be pressure on fees from local authorities, as discussed earlier. The ongoing difficult economic climate underlines the soundness of our policy to build a healthy reserves position, which enables us to withstand potential falls in income which might otherwise compromise the high quality of our services. We aim to maintain sufficient reserves (excluding the net book value of our tangible fixed assets) to cover up to 2 years’ full running costs of over £7.5m. At 31 December 2022 the balance of our unrestricted funds, less the net book value of our tangible fixed assets, totalled £7,773,804, allowing us to face the future with confidence. The Building and Subsidy Fund stands at £5,249,327 at 31 December 2022. It is a designated fund which the trustees believe is required to maintain the buildings and other tangible fixed assets of the charity to a high standard for the long term and to underpin our charitable activities should funding be significantly hit at any stage. The fund will be used as and when required. **Page 4** **BROOKVALE** **TRUSTEES’ REPORT (continued)** ## **Statement of trustees’ responsibilities** The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare the financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **Statement of disclosure to auditor** So far as the trustees are aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the trustees have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information. ## **Auditor** A resolution for the reappointment of Barlow Andrews LLP as auditor is to be proposed at the forthcoming Annual General Meeting. The trustees recommend that Barlow Andrews LLP remain in office until further notice. Approved by the trustees on and signed on its behalf: **S Pollock Trustee** **6 September 2023** **Page 5** **BROOKVALE** ## **INDEPENDENT AUDITOR’S REPORT** ## **TO THE TRUSTEES OF BROOKVALE** ## **Opinion** We have audited the financial statements of Brookvale for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). - In our opinion the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with the United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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. **Page 6** **BROOKVALE** ## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF BROOKVALE** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - 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 trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the statement of trustees’ responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector; - we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. **Page 7** **BROOKVALE** ## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF BROOKVALE** To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; and - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. **David Kay (Senior Statutory Auditor) for and on behalf of Barlow Andrews LLP Chartered Accountants and Statutory Auditor Carlyle House, 78 Chorley New Road, Bolton 6 September 2023** Barlow Andrews LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. **Page 8** **BROOKVALE** **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)** ## **FOR THE YEAR ENDED 31 DECEMBER 2022** |**Notes**
**Income from:**
Donations and legacies
3
Investments
4
Charitable activities
5
Other income
6
**Total Income**
**Expenditure on:**
Cost of generating funds
8
Charitable activities
9
**Total expenditure**
**Net income/(expenditure) before gains and losses on investments**
Net gains/(losses) on investments and investment properties
7
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
20|**Total**
**funds**
**2022**
**£**
**Total**
**funds**
**2021**
**£**
104,894
304,979
229,891
187,337
3,090,067
2,971,506
46,166
165,999| |---|---| ||3,471,018
3,629,821| ||85,392
45,482
3,888,965
3,442,304| ||3,974,357
3,487,786| ||(503,339)
142,035
(1,437)
405,233| ||(504,776)
547,268
11,720,341
11,173,073| ||11,215,565
11,720,341| The statement of financial activities includes all gains and losses recognised in the year. All of the charity’s operations are classed as continuing and all income and expenditure relates to unrestricted funds. **Page 9** **BROOKVALE** ## **BALANCE SHEET** ## **AS AT 31 DECEMBER 2022** |**Notes**
**Fixed assets**
Tangible fixed assets
13
Investment properties
14
Investments
15
**Current assets**
Debtors
16
Cash at bank and in hand
**Current liabilities:**
Creditors: amounts falling due in less than
one year
17
**Net current assets**
**Total net assets**
**The funds of the charity**
Unrestricted funds
20
**Total charity funds**|**2022**
**£**
**£**
3,441,761
4,294,879
3,132,916
10,869,556
139,965
460,821
600,786
(254,777)
346,009
11,215,565
11,215,565
11,215,565|**2021**
**£**
**£**
3,971,000
3,820,849
3,134,076
10,925,925
191,441
868,085
1,059,526
(265,110)
794,416
11,720,341
11,720,341
11,720,341|**2021**
**£**
**£**
3,971,000
3,820,849
3,134,076
10,925,925
191,441
868,085
1,059,526
(265,110)
794,416
11,720,341
11,720,341
11,720,341| |---|---|---|---| ||||10,925,925
794,416| ||600,786
(254,777)|1,059,526
(265,110)|| ||||| ||||11,720,341| ||||11,720,341| ||||11,720,341| The accounts were approved by the board of trustees and signed on its behalf: **S Pollock Trustee** **6 September 2023** **Page 10** **BROOKVALE** ## **STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED 31 DECEMBER 2022** |**Cash flows from operating activities:**
Net movement in funds for the year
Adjustments for:
Depreciation
Losses/(gains) on investments
Investment income
Decrease/(increase) in debtors
Decrease in creditors
**Cash (used in)/generated from operations**
**Cash flows from investing activities:**
Income from investments and investment properties
Purchase of property, plant and equipment
Purchase of investment properties
**Net cash used in investing activities**
**Net (decrease)/increase in cash and cash equivalents**
Cash and cash equivalents at start of year
**Cash and cash equivalents at end of year**(see below)
**Analysis of cash and cash equivalents**
Cash at bank and in hand
Cash deposits held as investments|**2022**
**£**
(504,776)
322,938
1,437
(229,891)
51,476
(10,333)
(369,149)
229,891
(30,692)
(237,037)
(37,838)
(406,987)
3,980,137
3,573,150
460,821
3,112,329
3,573,150|**2021**
**£**
547,268
348,857
(405,233)
(187,337)
(14,763)
(10,004)| |---|---|---| |||278,788| |||187,337
(44,952)
(379,669)| |||(237,284)| |||41,504
3,938,633| |||3,980,137| |||868,085
3,112,052| |||3,980,137| **Page 11** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. Accounting policies** Brookvale is an unincorporated registered charity, governed by a trust deed adopted on 5 July 1992. The registered office is Simister Lane, Prestwich, Manchester. ## **a) Accounting convention** These accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements have been prepared on the historical cost convention, modified to include investment properties and certain financial instruments at fair value. ## **b) Going concern** At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the accounts. ## **c) Charitable funds** General funds are unrestricted funds which represent accumulated income less direct charitable expenditure and other expenditure. They are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by trustees for particular purposes, as explained further in note 20 to the accounts. ## **d) Income** Income is generally recognised on a receivable basis and is reported gross of related expenditure, where the amount is reasonably certain and when there is adequate certainty of receipt. The specific bases used are as follows. - Donations and legacies are generally accounted for as received. - Investment income, including rents from investment properties, is recognised on a receivable basis. - Income from residential care and similar activities is accounted for in the period to which it relates. Any such income received in advance is deferred until entitlement to the income has arisen, at which time it is credited to the statement of financial activities. Any such income which arises in the period prior to the invoice being raised, is recognised as accrued income and credited to the statement of financial activities. - Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the money will be received. **Page 12** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **1. Accounting policies (continued)** ## **e) Expenditure** Expenditure is accounted for on an accruals basis and is included under expense categories which aggregate all costs for allocation to activities. Expenditure is recognised when it is incurred and is reported gross of related income on the following bases: - Charitable expenditure comprises direct expenditure including direct staff costs attributable to its activities. - Governance costs include costs incurred in the governance of the charity’s assets and costs directly associated with constitutional and statutory requirements. - Support costs include the central functions, including the staff costs of management, and are based on the time spent on a particular activity. - Cost of raising funds comprises direct expenditure incurred on rental properties, including staff costs attributable to its activities. ## **f) Investments** Investments intended to be held long term are initially measured at transaction price and then subsequently measured at fair value at each financial reporting date. Market value is used as a representation of fair value. Changes in fair value are recognised in the statement of financial activities for the year and transaction costs are expensed as incurred. ## **g) Investment property** Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value at the financial reporting date. The surplus or deficit on revaluation is recognised in the statement of financial activities for the year. ## **h) Tangible fixed assets and depreciation** Tangible fixed assets costing more than £2,000 are capitalised and included in the balance sheet at their cost. Depreciation is provided on all tangible assets at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives, as follows. Freehold land Nil Simister Lane buildings 2.5% straight line Swimming pool complex 7.5% reducing balance Holiday homes 2.5% straight line Motor vehicles 25% reducing balance Fixtures and fittings 15% reducing balance ## **j) Pensions** The charity operates defined contribution pension schemes for its employees, administered by independent managers, the assets of which are held separately from those of the charity. The pension costs charged in the financial statements represent the contributions payable by the charity during the year. ## **k) Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. **Page 13** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **l) Taxation** The organisation has charitable status and remains exempt from taxation of its income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. ## **m) Cash and cash equivalents** Cash and cash equivalents include cash in hand, bank deposits held at call and other short-term liquid investments with original maturities of three months or less. ## **n) Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## **Basic financial assets** Basic financial assets, which include cash and bank balances and trade debtors, are measured at transaction price. ## **Other financial assets** Financial assets classified as other financial assets, such as investments, are stated at fair value. Any gains or losses arising on re-measurement are recognised in the statement of financial activities. ## **Basic financial liabilities** Basic financial liabilities, which include other creditors, are recognised at transaction price. ## **2. Judgements and key sources of estimation uncertainty** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: ## **Investment properties** The fair value of the charity’s investment property has been arrived at on the basis of a valuation carried out at that date by the charity’s trustees, based on market evidence and local knowledge. **Page 14** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** |**3.**
**Donations and legacies**
Donations
Legacies
**4.**
**Investment income**
Rental income
National Savings investment
Bank interest
**5.**
**Income from charitable activities**
Provision of residential, respite and day care
**6.**
**Other income**
Covid-19 support grant from Bury MBC
**7.**
**Net gains/(losses) on investments and investment properties**
(Losses)/gains on revaluation of UK listed investments
Gains on revaluation of investment properties|**2022**
**£**
27,399
77,495
104,894
**2022**
**£**
172,813
276
56,802
229,891
**2022**
**£**
3,090,067
3,090,067
**2022**
**£**
46,166
46,166
**2022**
**£**
(1,437)
-
(1,437)|**2021**
**£**
54,979
250,000
304,979
**2021**
**£**
138,416
30
48,891
187,337
**2021**
**£**
2,971,506| |---|---|---| |||2,971,506| |||**2021**
**£**
165,999| |||165,999| |||**2021**
**£**
5,233
400,000| |||405,233| **Page 15** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **8. Costs of generating funds** |Property costs
Support costs in administration of investments etc.
**9.**
**Costs of charitable activities**
**Directly allocated costs**
Provisions
Water and council tax
Insurance
Gas and electricity
Motor and travel expenses
Medical supplies
Professional fees
Nursing agency fees
Laundry and cleaning
Staff training and educational development
Printing, stationery and advertising
Telephone
Repairs, renewals and maintenance
Land and garden expenses
Sundry expenses
Bedding
Bank charges
Wages and salaries
National insurance
Pension costs
Depreciation
**Support costs**
Wages and salaries
National insurance
Pension costs
Accountancy and payroll fees
**Governance costs**
Auditors’ remuneration
Trustee indemnity insurance|**2022**
**£**
69,162
16,230
85,392
170,350
37,715
54,709
207,916
21,409
73,373
19,497
354,472
54,496
25,800
10,733
25,978
285,571
1,732
3,090
3,615
2,038
1,773,216
156,552
37,534
322,938
3,642,734
193,827
24,840
2,519
11,040
232,226
9,600
4,405
14,005
3,888,965|**2021**
**£**
32,598
12,884| |---|---|---| |||45,482| |||162,825
139,264
45,673
126,029
23,151
47,653
18,367
37,600
60,967
6,481
7,804
21,172
186,488
3,090
1,372
1,459
2,678
1,767,061
152,588
37,126
348,857| |||3,197,705| |||194,826
23,840
2,518
10,490| |||231,674| |||8,940
3,985| |||12,925| |||3,442,304| Support costs include the central functions, including the staff costs of management, and are based on the time spent on a particular activity. **Page 16** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **10. Net income** |**10. Net income**||| |---|---|---| |This is stated after charging:|**2022**|**2021**| ||**£**|**£**| |Depreciation|322,938|348,857| |Auditors’ remuneration|9,600|8,940| |**11.**
**Staff costs**
Staff costs were as follows:
Wages and salaries
Social Security costs
Pension costs (see note 12)
The average number of employees was:
Carers and auxiliary staff
Management and administration of the charity|**2022**
**£**
1,967,043
181,392
40,053
2,188,488
**2022**
67
6
73|**2021**
**£**
1,961,887
176,428
39,644| |---|---|---| |||2,177,959| |||**2021**
75
6
81| The number of employees whose total employee benefits, excluding pension contributions, were over £60,000, classified within bands of £10,000, is as follows: |lassified within bands of £10,000, is as follows:||| |---|---|---| ||**2022**|**2021**| |£60,000 - £69,999|1|1| |£110,000 - £119,999|1|1| The employee benefits of the key management personnel totalled £432,957 (2021: £383,351). No remuneration or expenses, directly or indirectly out of the funds of the charity, were paid or payable during the year to any trustee or to any persons known to be connected to them. The charity spent £4,405 (2021: £3,985) in the purchase of insurance to indemnify the trustees against the consequences of any neglect or default in relation to the charity. ## **12. Pension costs** The charity operates defined contribution pension schemes for its employees, administered by independent managers, the assets of which are held separately from those of the charity. The pension charge in note 11 represents contributions due from the charity in the year. **Page 17** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **13. Tangible fixed assets** |**Cost**
At 1 January 2022
Additions
Transfer to investment property
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for the year
Transfer to investment property
At 31 December 2022
**Net book values**
At 31 December 2022
**At 31 December 2021**|**Simister**
**Lane**
**land and**
**buildings**
**Holiday**
**homes**
**Fittings**
**and**
**equipment**
**Motor**
**vehicles**
**Total**
**£**
**£**
**£**
**£**
**£**
5,925,647
400,879
3,021,810
80,385
9,428,721
-
-
30,692
-
30,692
(342,100)
-
-
-
(342,100)| |---|---| ||5,583,547
400,879
3,052,502
80,385
9,117,313| ||3,407,454
160,716
1,821,918
67,633
5,457,721
132,821
10,044
176,885
3,188
322,938
(105,107)
-
-
-
(105,107)| ||3,435,168
170,760
1,998,803
70,821
5,675,552| ||2,148,379
230,119
1,053,699
9,564
3,441,761| ||2,518,193
240,163
1,199,892
12,752
3,971,000| Included in land and buildings is freehold land costing £5,078 (2021: £5,078) which is not depreciated. All properties are freehold with the exception of holiday homes, which are long leasehold. ## **14. Investment properties** |**At valuation**
At 1 January 2022
Additions in the year at cost
Transfer from tangible fixed assets
At 31 December 2022|**£**
3,820,849
237,037
236,993
4,294,879| |---|---| Investment property comprises a portfolio of 12 properties held with the intention of obtaining rental income. Any revaluations during the year are based on market evidence and local knowledge and are carried out professionally, where necessary, or by the trustees otherwise. The historical cost of the investment properties is £3,959,388 (2021: £3,380,251). **Page 18** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **15. Fixed asset investments** |**Cash deposits:**
Israeli Bonds
N S & I
**UK listed investments**|**Brought**
**forward**
**£**
**Additions**
**£**
**Disposals**
**£**
**Revaluations**
**£**
**Carried**
**forward**
**£**
**% Share of**
**total**
2,815,000
2,050,000
(2,050,000)
-
2,815,000
89.85
297,052
-
-
277
297,329
9.49| |---|---| ||3,112,052
2,050,000
(2,050,000)
277
3,112,329
99.34
22,024
-
-
(1,437)
20,587
0.66| ||3,134,076
2,050,000
(2,050,000)
(1,160)
3,132,916
100.00| Investments are stated at their fair value (see note 1f). ## **16. Debtors** |Trade receivables - amounts due for provision of care
Prepayments and accrued income|**2022**
**£**
49,672
90,293
139,965|**2021**
**£**
105,268
86,173| |---|---|---| |||191,441| ## **17. Current liabilities** |Trade payables
PAYE and national insurance
Pension creditors
Accruals
Deferred income
Other creditors|**2022**
**£**
90,752
42,141
619
96,325
19,983
4,957
254,777|**2021**
**£**
53,330
39,217
619
81,108
85,910
4,926| |---|---|---| |||265,110| Deferred income is in respect of amounts invoiced to local authorities, which can include an element of income relating to post-year end. The amounts involved can vary from one period to another. ## **18. Financial instruments** |**Carrying amount of financial assets**
Being trade receivables, cash and bank balances and fixed asset investments
**Carrying amount of financial liabilities**
Being current liabilities excluding deferred income and PAYE and national insurance|**2022**
**£**
3,643,409
192,653|**2021**
**£**
4,107,429| |---|---|---| |||139,983| **Page 19** **BROOKVALE** ## **YEAR ENDED 31 DECEMBER 2022** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **19. Analysis of net assets between funds** All funds, including designated funds, are unrestricted and therefore all assets and liabilities relate to unrestricted funds. ## **20. Movements in funds** |**Current year**
**Designated funds**
Building and Subsidy Fund (see note below)
**General funds**
General Fund
**Total unrestricted funds**
**Prior year**
**Designated funds**
Building and Subsidy Fund (see note below)
**General funds**
General Fund
**Total unrestricted funds**|**Balance at**
**start of year**
**Income**
**Expenditure**
**Investment**
**gains**
**Balance at**
**end of year**
**£**
**£**
**£**
**£**
**£**
5,244,569
4,758
-
-
5,249,327| |---|---| ||6,475,772
3,466,260
(3,974,357)
(1,437)
5,966,238| ||11,720,341
3,471,018
(3,974,357)
(1,437)
11,215,565| ||5,240,133
4,436
-
-
5,244,569| ||5,932,940
3,625,385
(3,487,786)
405,233
6,475,772| ||11,173,073
3,629,821
(3,487,786)
405,233
11,720,341| ## **Prior year** **Designated funds:** The Building and Subsidy Fund represents funds which the trustees believe are required to maintain the buildings and other tangible fixed assets of the charity to a high standard for the long term and to underpin our charitable activities should regular funding streams be significantly hit at any point. ## **21. Related party transactions** There are no related party transactions to report for this or the previous year. **Page 20**