Charlty registratlon number 703194 Company reglstration number 02516363 (England and Wales) CROFT CARE TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 lli 'ADDV39EI* 1611012024 COMPANIES HOUSE A14
274
CROFT CARE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustees MrsA Edmondson Mr P J Heath Mrs B Pearce Miss S Edmondson Mrs C Hibbert Charity number 703194 Company number 02516363 Reglstered offlca The Croft Hawcoat Lane Barrow in Furness Cumbria L414 4HE Audltor JL Winder & Co Suite 6 Furness Gate Peter Green Way Barrow in Fumess Cumbria LA14 2PE Bankers Natwest 113 Dalton Road Barrow in Furness Cumbria LA14 1WY Furness Building Society 51-55 Duke Street Barrow in Furness Cumbria LA14 1RT Soll¢ltors Livingstons Solicitors 9 Benson Street Ulverslon Cumbria LA12 7AU
CROFT CARE TRUST CONTENTS Page Trustees, report Statement of Trustees. responsibilities Independent auditor's report Statement of financial activitie5 Balance sheet 11 Statement of cash flows 12 Notes to the financial statements 13-28
CROFT CARE TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their Annual Report and Financial Statements for the year ended 31 March 2024. 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 Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Objecllves and actlvlties The Charily's objects are to promote the care, treatment, education and advancement of people with leaming and physical difficulties in Barrow in Furness. The objectives are carried out by providing long term care in a Nursing and Residential setting. The Charity has 46 long term care beds (23 nursing and 23 residential} within a homely environment in which the Residents can live a full and active life. The Charity's aim is to provide a safe and caring environment for Residents for as long as it is needed. Each Resident receives individualised care of the highest possible standard based on current knowledge and research. which promotes privacy. dignity and respect. There has been no change in these during the year. The Trustees have pald due regard to guidance in section 17{5) of the 2011 Charities Act issued by the Charity Commission in deciding what activities the Charity should undertake. Strateglc report The description under the headings "Achievements and performance" and "Financial review" meet the Company Law requirements for the Trustees to present a strategic report. Achievements and performance This year continued with Steven Hibbert as Ihe Registered Manager and Helen Waite and Julie MarklgN making up the Senior Management Team. The structure is one Registered Manager leading a team of Senior Managers and two Junior Managers. Our last inspection by CQC was on 25th February 2022. We were classed as a 'Good' home. We continue to update and modernise and as Residents, needs change we adjust accordingly, keeping the accommodation maintained to a high standard. As with all Care homes we have been faced with contlnued restrictions relating to Covid 19 although these have been reduced. As additional Governmenl funding ceased in 2022, we put in place a Covid Fund which could be accessed by every Staff member to cover a weeks wage should they have to be absent due to a positive Covid tesl. The conversion of the ground floor space at Highlands Avenue into a 1 bedroomed unfurnished flat was completed and the flat was rented out in January and brings in a regular income along with the upstars flat. The garden was also divided into 2 separate areas. We continue to audit and review on a regular basis. we have appointed a Staff Training Officer who delivers and monitors the continuous Staff training specifically targeted for our Residents. needs.
CROFT CARE TRUST TRUSTEES. REPORT {CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Flnancial review During the year the Charity provided long term Residential care for 46 Residents {2023 - 46). 23 within the Nursing Home and 23 within Ihe Village. For much of this year there were several vacancies in both the Nursing Home and the Village. The Charity received fees for providing this residential care of £2,638.487 {2023- £2,394.343). The Charity has a significant Investment Portfolio and two rental flats. It received investment income of £51,715 12023 - £33,154) from interest and dividends on these investments, and rent from the rental property. It also received donations, gifts and legacies of £114,474 (2023 - £47,984). There were no restrictions on use placed on any income this year. Shop income was nil (2023- £7,881), the shop having closed in June 2022. Other income amounted to £23,807 (2023 £3,408} and included an insurance claim and income for student nurse training. This resulted in total income of £2,828,483 (2023- £2,486,770) for the financial year. Charitable expenditure in the year tolalled £2,929,531 (2023 - £2,452,738), Of Ihis £2,260,261 12023 - £1,898,200> was for staff wage costs to enable the care lo be provided. This year this included agency costs of £121,852. Depreciation also accounts for a substantial part of these figures being £78,84412023 - £85.624}. £19,361 (2023 - £43.222) was spent on raising funds, the decrease being as a result of the shop closure. Total expenditure for the year was £2,949,861 {2023 - £2,500.281). There were realised gains on Investments of £1,125 (2023- £153,541) and unrealised gains of £135,646 (2023 unrealised losses of £248,630). The work on Highlands Avenue was completed converting the former sandwich shop, Crofties. to a Send rental flat, Highlands Ave now comprises Iwo rental liats and as such the asset has been reclassified al Pdir value as an investment property on the balance sheet. The fair value adjustment was a reduction in value of £107.754. The net movemenl in funds was an decrease of £92,361 (2023 - decrease of £108,600). The Charity has unrestricted reseNes at the year end of £4,020,156 (2023- £4,104,231) and restricted reseNes of £5,47612023 - £13.762). It is the policy of the Charity that unrestricted funds which have not been designated for a specrfic use should be mainlained at a level to ensure operalion for one year. The Trustees consider that reserves at Ihis level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. The Charity has a significant Investment Portfolio which is managed by DavidArmstrong ofTrue Potential Wealth Management LLP. The new building extension will be funded from the capital element of the Investments as well as our continuing need to draw down further income in order to assist with the running costs of Croft Care Trust. The next year will see a major reduction in the overall amount of the investments. This cannot be avoided as the safety and welfare of the Residents remains of paramount importance. The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place lo mitigate exposure to the major risks.
CROFT CARE TRUST TRUSTEES. REPORT ICONTINUED){INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Plans for future perlods We hope to continue lo provide a much needed service for the local community We will continue lo improve and renovate the existing buildings and facilities. We took the decision to apply for permission to build a 5 bedroomed extension to the Nursing Home in order to bring some of the upstairs Residents down to the ground floor. Pefmission was granted and even though this meant that the Club House needed to be demolished in order to make way for the extension, the benefits will be 5 new rooms fully fit for purpose as well as improved evacuation procedures should they ever be required. Building work has started and should be completed by the start of 2025. We continue to strive forward wth future planning, in the next accounting year we continue to renovate and improve the buildings and facilities, with a view to making them work better for us and our Residents. Structure, governance and management The Charity is a Company limited by guarantee and is governed by a Memorandum and Articles ofAssociation. The Trustees. who are also the Direclors for the purpose of Company Law, and who served during the year and up lo the date of signature of the financial statements were.. Mrs A Edmondson Mr P J Heath Mrs B Pearce Miss S Edmondson Mrs C Hibbert Our Trustees are elected each year at our AGM. They are recruited for Ihe skills they bring with them to help the Croft Care Trust. We are always on the look oul to recruit more Trustees and ask that people who have the relevant skllls apply via letter encloslng a CV. All new applicants will be checked through the Data Barring Service, Individual Insolvency Register, Register of Disqualified Directors and the Charity Commission. Subject to references and completed checks returning satisfactory results, applicants will be invited to join the Trustees. None of Ihe Trustees has any beneficial interest in the company. All of the Trustees are members of the Company and guarantee to contribute £1 in the event of a winding up All new Trustees are given a guided tour, so long as COVID restrictions allow for this. During the tour they are informed of our history, the type of age group of Clients we have and what our aims are for the future of the Croft Care Trust. They are given a booklet, produced by the Charities Commission called 'The Essential Charity Truslee, (CC3) which gives details of responsibililies undertaken and also the Memorandum andArticles of Association. The Trustees of the Croft Care Trust are responsible for the business side of the Charity. The day to day running of the Charity is left to the Senior Management Team as follows'.- Mr S Hibbert- Registered Manager Mrs J Marklew- Finance Manager Helen Waite - Clinical Lead Nurse l Deputy Manager A review board wmprising Mrs Avis Edmondson, Miss Sarah Edmondson and Mrs Colette Hibbert has been established to set the pay and remuneration of the Charily's key Management Personnel. There are no connected Chartties or Branches and no material transactions with Trustees or related parties.
CROFT CARE TRUST TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Funds held as Custodian Trustee The Charity holds, as Custodian Trustee, a separate bank account which is not reflected in these accounts as the money belongs to Residents of Croft Care Trust. At the year end the total held was £1,331 (2023 - £4,974). Auditor Dlsclosure of Infomiation to Audltor Each of the Trustees has confimied that there is no information of which they are aware which is relevant to the audit, but of which the Auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the Auditor is aware of such information. The Trustees, Report, including the Strategic Report, was approved by the Board of Trustees. Daled.. gid'° &ptELMbL-o a4
CROFT CARE TRUST STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees, vtho are also the directors of Croft Care Trust for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the Trustees lo prepare financial statements for each financial year which gtve a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company 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., slate whether applicable UK Accountlng 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 basi5 unless it is Inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any lime the financial position of the Charity and enable them to ensure that the financial statemerts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hee for taking reasonable steps for the prevention and detection of fraud and other irregularities, The Trustees are responsible for the mainlenance and integrity of the charity and financial inforrnation included on the Charity's website. Legislation in the United Kingdom governing the preparation and disseminallon of financial statements may differ from legislation in other jurisdictions.
CROFT CARE TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CROFT CARE TRUST Opinlon We have audited the financial statements of Croft Care Trust (the 'Charity') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 Th& Financial Reporting Standard applicable in the UK and Republic of Iland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial stalements: give a true and fair view of the slate of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources. including its income and expenditure, for the year then 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. Basls for opinion We conducted our audit in accordance with International Standards on Auditing {UK) (ISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditoffs fftsponsibililies for the audit ol Ihe financial statements section of our report. We are independent of the charitable company in accordan 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. Con¢luslons relatlng to golng concern In auditing the financial statements, we have concluded Ihat the Trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. 8ased on the work we have performed, we have not identified any material uncertainties relating io events or conditions that, individually or collectively, may cast significant doubl on the Charity's ability to continue as a going concern for a period of at least e1ve 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 Ihe annual report other than the financial statements and our auditor's report thereon. The Truslees are responsible for the other information contained within the annual report. Our opinlon on the financial statements does not cover the other information and, except to the extent otherwise explicitly slated 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 othernise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether Ihis gives rise to a material misstalement in the financial slatements 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. Oplnions on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of our audit: the information given in the Trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is Consistent with the financial statements. and the strategic report and the directors, report included wilhin the Trustees, report have been prepared in accordance with applicable legal requirements.
CROFT CARE TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CROFT CARE TRUST Matters on whl¢ii we are requlred to report by exception In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or relurns 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 nol 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, who are also the direclors of the Charity for the purpose of company law. are responsible for the preparation of the financial slalements 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 charitable company or to cease operations, or have no reallstic alternative but to do so. Audltor's responslbllltles for Ihe audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance bul is nol a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when It exisls. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financlal statements The exlent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
CROFT CARE TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CROFT CARE TRUST 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 Cornpeten, capabilities and skills lo 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 senior management, and from our commercial knowledge and experience of the charity sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, health and social care regulatlons, employment and health and safety legislation. • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and • identified laws and regulations were communicated within the audit team regularfy and the team remained elert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, induding obtaining an understanding of how fraud might occur, by.. making enquiries of management as to vthere they consldered there was susceptibility to fraud, thelr knowledge of actual, suspected and alleged fraud; considering the internal controls in place to mitigale risks of fraud and non-compliance with laws and regulations., To address the risk of fraud through management bias and override of controls, we: performed analytical procedures lo identify any unusual or unexpected relatlonshlps. tested joumal entries to identify unusual transactions., assessed whether judgements and assumpiions made in determining the accounting estimates were indicative of potential bias., investigated the rationale behind significant or unusual transaclions: In response to the risk of irregularities and non-compllance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance; enquiring of management as to actual and polential litigation and claims., reviewing correspondence with relevant regulators and the company's legal advisors: There are inherenl limitalions in our audit procedures described above. The more removed that laws and regulalions are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audil procedures required to identify non-compliance with laws and regulations to enquiry of the directors 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 than those that arise from error as they may Involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our r•port This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitatAe company's members those malters we are required to slate lo them in an auditor's report and for no olher purpose. To the fullest exlent permitted by law, we do nol accept or assume responsibility to anyone other Ihan the charitable company and the charltable company's members as a body, for our audit work, for this report, or for the opinlons we have formed.
CROFT CARE TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CROFT CARE TRUST Sarah Roberts Bsc FCA (Senior Statutory Auditor) for and on behall of JL Wlnder & Co Chartered Accountants Statutory Audltor Suite 8 Furness Gate Peter Green Way Barrow in Furness Cumbria LA14 2PE
CROFT CARE TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted funds funds Total 2024 Total 2023 Notes In Donations and legacies Charitable activities Other trading activities Investments Other income 114,474 2,638,487 114,474 47.984 2,638.487 2,394,343 7,881 33,154 3,408 51,715 23,807 51,715 23,807 Total Income and endowments 2.828,483 2,828,483 2,486,770 Raising funds 19,361 19,361 43,222 Charitable activities 2,927,885 1,646 2,929,531 2.452,738 Other 14 969 969 4,321 Total resources expended 2,948,215 1,646 2,949,861 2,500,281 Net gainsl(losses) on investments 15 29,017 29,017 (95,089) Net outgolng resources before transfers (90,715) (1,646) (92,361) (108,600) Gross transfers between funds 8.640 (6,640) Net movement In funds 184,075) (8,286) {92,361) (108,600) Fund balances at 1 April 2023 4,104,231 13,762 4,117,993 4,226,593 Fund balances at 31 March 2024 4.020,156 5.476 4,025.632 4,117.993 The statement of financlal activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 10-
CROFT CARE TRUST BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investment properties Investments 17 18 19 1,546,331 300,000 2,024,316 1,909,975 1,883,860 3,870,647 3,793,835 Current assets Stocks Debtors Cash at bank and in hand 21 20 6,666 126.916 280,965 6,725 99.856 376,862 414.547 483,443 Credltors: amounts falllng due wlthln one year 22 (259.562) (1 59,2851 Net current assets 154,985 324,158 Total assets less current Ilabllltles 4,025,632 4,117,993 Income funds Reslricled funds 24 5,476 13,762 General unrestricted funds 26 4,020,156 4,104,231 4.020,156 4,104,231 4,025,632 4,117,993 The accounts were approved by the Twstees on . MrsA Edmondson Trustee Company Registration No. 02516363 11
CROFT CARE TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operatlng activitles Cash (absorbed by)Igenerated from operations 31 (20,004) 12,535 Investlng actlvltles Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received {123,923) (53.400) 530 (2,039.2481 2,031,394 33,154 (166,933) 163,248 51,715 Net cash used In Investlng actlvltles (75,893) (27,570) Net cash used in financlng activities Net decrease In cash and cash equlvalents (95,897) (15,035) Cash and cash equivalents at beginning of year 376,862 391,897 Cash and cash equlvalents at end of year 280,965 376,862 12-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Company informallon Croft Care Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is The Croft, Hawcoat Lane, Barrow in Furness, Cumbria. LA14 4HE. 1.1 Accounting convention The financial statements have been prepared in accordance with the Charily's Igoverning documenti, the Companies Act 2006. FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102 ) and the Charities SORP "Accounting and Reporting by Charities.. Statement ol Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The financial stalemenls are prepared in sterling, which is the functlonal currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the hislorical cost convenlion, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair valuel. The principal accounting policies adopted are set out below. 1.2 Golng Concern At the time of approvlng the financial slatements, the Truslees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the reslricled funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that Ihe capital must be rnainlained by the Charity. 1.4 Incomlng resources Income is recognised when the Charity is legally entitled to il after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the arnount. Income tax recoverable in relation lo donations received under GiftAid or deed5 of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otheiSe if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Care fee income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, nel of discounts, As the Charity is not VAT registered all figures shown in the accounts are gross. 13-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued 1.5 Resources expended Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfer of economic benefits wll be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the tolal of direct costs and shared costs, including support costs involved in undertaking each activity Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more Ihan one activity and support costs which are not attributable to a single aclivily 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 are allocated on the portion of the asset's use. Resources expended are accounted for on an accruals basls and are allocaled to the relevant cost category. 1.6 Tanglble flxed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Land and buildings Fixtures, fittings & equipmenl Motor vehicles 20/0 Straight line 15¢/10 Straight line 200A straight line The gain or loss arising on the disposal of an ass81 is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised In the slatement of financial aclivilies. Assels with a cost of £500 or less are nol capitalised. 1.7 Investment propertles Investment property, which is property held to eam rentals andlor for capital appreciation, is initially recognised at cost. which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. 1.8 Flxed asset Investments Fixed asset investments are initially measured al transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognlsed In net incomel(expenditure) for the year. Transaction costs are expensed as incurred. 1.9 Impalrment of flxed assets At each reporting end date, the Charity reviews the carrying amounts of its tangible and intangible assets to detemine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is eslimaled in order to determine the extent of the impairment loss lif any). 1.10 Stocks stocks are stated at the lower of cost and estimated selling pri. 14-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles (Continued 1.11 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-lerm liquid investmenls with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.12 Financial instruments The Charity has elected to apply the provisions of Section 11 'Basic Flnancial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of ils financial instruments. Financial instruments are recognised in the Charity's balance sheel when the Charity becomes party to the contradual 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 sel off the recognised amoun15 and there is an intention to settle on nel basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include deblors and cash and bank balances, are initially measured at transaction price including transaction cosls and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaclion is measured at the present value of the future receipts discounled at a market rale of interest. Financial assets classified as receivable within one year are not amortised. Baslc flnanclal Ilablllties Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction. where the debt instrument is measured at the present value of the future payments discounted at a market rale of interest. Financial liabilities classlfied as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost. using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operalions from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially al transaction price and subsequently measured at amortised cosl using the effective interest method. Derecognitlon of financlal Ilabilltles Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. 1.13 Employee benefits The cost of any unused holiday entitlement is recognised in Ihe period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employmenl of an employee or to provide termination benefits. 1.14 Retlrement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.15 Leases Rentals payable under operating leases, including any lease incentives received. are charged as an expense on a straight line basis over the term of the relevanl lease. 15-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Judgements and key areas 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 amounl of assets and liabilities that are not readily apparent from other sources. The eslimales 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 revislon affects both current and future periods. Crltlcal Judgements Fixed assets The useful life and depreciation rate of tangible flxed assets is regularly reviewed and amended where necessary. Valuatlon of investment property Th8 company has obtained a market valuation for the investmenl property from a local valuer who has extensive knowledge of the area. Donatlons and legacles 2024 2023 Donations and gifts 114,474 47,984 114.474 47,984 Charltable actlvltles 2024 2023 Income from care fees 2.638,487 2,394,343 Other trading actlvities 2024 2023 Shop income 7,881 16-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from investments Unrestricted Unrestrlcted funds funds 2024 2023 Rental income Dividends received Interest receivable 9,349 37,833 4,533 8.122 22,903 2,129 51,715 33,154 other Income 2024 2023 Income from staff meals Minibus income Misc income 550 1,026 22,231 195 1,276 1,937 23,807 3,408 17_
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Raising funds Unrestricted Restricted funds funds Total Unrestrlcted funds 2024 2024 2024 2023 Other fundraising costs 536 536 Operating charity shop Staff costs 12,846 11,719 Trading Costs 24,565 Al AA Investment management fees Rental property costs 15,148 3,677 15,148 3,877 15.050 3,607 18,825 18,825 18,657 19,361 19,361 43,222 18
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitable activities 2024 2023 Staff costs Depreciation and impairment Provisions Hygiene and surgical supplies Rates and water Fuel and light Insurance Telephone Cleaning and laundry Waste disposal Equipment maintenance Property maintenance Garden maintenance Repairs and r8newals - general DIY Residents, welfare and entertainment TV licence fees and sundries Recruitment and training costs Staff overalls and expenses Motor expenses Registration fees Office costs Bank charges Payroll fees Legal and professional fees Accountancy and audit fees 2,260,261 78,844 94,977 21,914 25,351 86,906 32,593 2,406 23,258 15,831 25,981 69,088 337 39,203 6,547 2.227 21,225 22,502 6,610 12.038 48,814 2,544 10,428 11,751 7,897 1,886,481 85,824 95,829 13,250 30,838 65,359 30,287 2,033 27,903 13,989 29,007 19,352 330 42,621 1,372 3,127 18,154 16,066 3,404 9,247 43,502 2,053 5,073 360 7,477 2,929,531 2,452,738 Analysis by fund Unreslricled funds Restricted funds 2,927,885 1,646 2,929,531 For the year ended 31 March 2023 Unrestricted funds Restricted funds 2,448.395 6,343 2,452,738 19
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Net movement In funds 2024 2023 The net movement in funds is stated after chargingllcrediting>'. Fees payable to the charity's auditor: for the audit of the charity's financial statements for other financial seNi¢es Depreciation of owned tangible fixed assets Loss on disposal of tangible fixed assets 6,300 1,200 78.844 969 6,000 1,440 85,624 4,321 11 Trustees None of the Trustees (or any persons connected with them) received any remuneration dufing the year. 12 Audltor's remuneratlon The analysis of auditor's remuneration is as follows.. 2024 2023 Audit of the annual accounts 6.300 6,000 Non-audit seriices All other non-audit seDiices 1,200 1,440 -20-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 13 Employees Number of employees The averag8 monthly number of employees during th8 year was.. 2024 Number 2023 Number Residential care Management and administration Charity shop 83 71 86 74 Ernployment costs 2024 2023 Wages and salaries Social security costs Other pension costs 1,931,397 141,804 65,208 1,706,581 132,530 59,089 2,138,409 1,898,200 Agency staff costs 121,852 The full time equivalent stsff number is 69 (2023 - 68). The number of employees whose annual remuneration was £60,000 or more were.. 2024 Nurnber 2023 Number £60,000 lo £69,999 Contributions totalling £15.303 (2023.. £10,640) were made to defined contribution penslon schemes on behalf of employees whose emoluments exceed £60,000. 14 Other 2024 2023 Net loss on disposal of tangible fixed assets 969 4,321 969 4,321 21
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 15 Net gainsl(losses) on Investments Unrestricted funds Total 2024 2023 Revaluation of investments Gainllloss) on sale of investments Revaluation of investment properties 135,646 1,125 (107,754) (248,630) 153,541 29,017 (95,089) 16 Taxation The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 17 Tanglble flxed assets Land and bulldings Flxturo$, Motor vehlcles littings & equipment Total Cost At 1 April 2023 Ad¢Jitions Disposals Transfer lo investment property 2,788,309 105,189 380,513 18,734 (21,218) 48,408 3,217,230 123,923 121.218) {437,121) (437,121) At 31 March 2024 2,456.377 378,029 48.408 2,882,814 Depreclation and Impairment At 1 April 2023 Depreciation charged in the year Eliminated in respect of disposals Transfer to investment property 962,824 48,787 313,987 26,359 <20,249) 30,444 3,698 1,307,255 78,844 (20,249) (29,367) (29.367) At 31 March 2024 982,244 320.097 34,142 1,336,483 Carrylng amount At 31 March 2024 1,474,133 57,932 14,266 1,546,331 At 31 March 2023 1,825.485 66,526 17,964 1.909,975 -22-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Inveslment property 2024 Falr value At 1 April 2023 Transfers from owner-occupied propety at carrying amount Net gains or losses through fair value adiuslments 407.754 (107.754) At 31 March 2024 300,000 Investment property is the property al Highlands Ave which now comprises two rental flats. The ground floor was formerly the charity's sandwich shop with a rental flat upstairs. After closure of the shop Ihls was converted lo a second rental tlat, completed in May 2023. The fair value of the investment property has been arrived at on the basis of a valuation provided by Corrie and Co, Estate Agents, who are not connected with the Charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. 19 Flxed asset Investments 2024 2023 Investments 2.024,316 1,883.860 Movements in flxed asset investments Shares Cost or valuatlon At 31 March 2023 Additions Valuation changes Disposals 1,883,860 166.933 135,646 (162,123) At 31 March 2024 2,024,316 Carrying amount At 31 March 2024 2,024,316 At 31 March 2023 1,883,860 -23-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Debtors 2024 2023 Amounts falling due withln one year: Trade debtors Other debtors Prepayments and accrued income 3,368 1,336 122,212 9,167 90,689 126,916 99,856 21 Stocks 2024 2023 Stock 6,666 8,725 22 Creditors: amounts falling due wlthln one year 2024 2023 Other taxation and social Security Payments received on account Trade creditors Other creditors Accruals and deferred income 50,967 31,352 81,624 72,549 43,070 29,662 41,834 19,711 37,377 30,701 259,562 159,285 23 Retirement benefit schemes 2024 2023 Deflned contrlbutlon schemes Charge to profit or loss in respect of defined contribution schemes 65,208 59,089 The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. -24-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 24 Restricted funds The restricted funds of the charity comprise the unexpended balances of donalions and grants held on trust subject to specific conditions by donors as to how they may be used. Balance at 1 April 2022 Resources Balance at expended 1 April 2023 Resources expended Transfers BJlanc8 at 31 March 2024 COVID-19 support grants Morrisons garden grant Restricted fixed assets 10,222 1,115 8,768 (4,697) 5.525 1,115 7,122 (5,525) (1,115) (1,646) {1,646) 5,476 20,105 {6,343) 13.762 (1,646) 16,640) 5,476 25 Analysls of net assets between funds Unrastrlcted funds 2024 Restrlcted funds 2024 Total 2024 At 31 March 2024: Tangible assets Investment properties Investments Current assetsllliabililies) 1,540,855 300.000 2,024,316 154,985 5,476 1,546,331 300.000 2,024,316 154,985 4,020,156 5,476 4,025,632 Unrestricted funds 2023 Restricted funds 2023 Total 2023 At 31 March 2023: Tangible assets Investments Current assetsl{liabilities) 1,902,853 1,883,860 317,518 7.122 1,909,975 1,883,880 324,158 6,640 4,104,231 13,762 4,117,993 -25-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 26 Unrestrlcted funds The income funds of the charity include the following allocations vthich have been set aside out of unrestricted funds by the trustees for specific purposes.. Movement in funds Decrease Transfers Balance at 1 Aprll 2023 Increase Gains and Balance at 31 losses March 2024 General Security Propety Investment property 394,886 1,883,860 1,825,485 2,828.483 (2,948,215) (53,448) 3,685 (351,351) 407,754 221,706 2.024.316 1,474,134 300,000 136,771 (107,7541 4,104,231 2,828,483 {2,948,215) 6,640 29,017 4.020.156 The charity view the funds held in investments as 'security' funds, these are to ensure that the charity can continue to operate for the forseeable future. This reserve contains a minimum of one year's operating cosls. The net book value of the property and valuation of the investment propety are shown separately as 'property' funds. on the basis that these funds are not readily available to the charity. The general fund is the balance of'free, reserves. -26-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 27 Operatlng lease commltments At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2024 2023 Beeen and five years 7,679 11,519 28 Events after the reportlng dale The Charity has commenced Vrk on an extension to the nursing home after the year end. This project will create 5 bedrooms downstairs which are fit for purpose and allow the conversion of exisling rooms on the first floor to offices and storage space. The expected cost of the build will be £550.000 and this will be financed from current reserves. 29 Related party transactions Remuneration of key management personnel The remuneration of key management personnel was as follows.. 2024 2023 Aggregate compensation 221,650 217.818 30 Analysls of changes in net funds The Charity had no material debt during the year. -27-
CROFT CARE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 31 Cash generated from operations 2024 2023 Deficit for the year (92,361) (108,600) Adjustments for.. Investment income recognised in slatement of financial activities Loss on disposal of tangible fixed assets Gain on disposal of investments Fair value gains and losses on investment properties Fair value gains and losses on inveslrnents Depreciation and impairment of tangible fixed assets (51,715) 969 (1,125} 107.754 (135.646) 78,844 (33,1 $4) 4,321 (153,541) 248,630 85,624 Movements in working capital-. Decrease in stocks (Increase) in debtors Increasel(decreasel in creditors 59 {27,060) 100,277 368 (19,2101 {11,903) Cash (absorbed byllgenerated from operatlons {20,004) 12.535 -28-