Charity number: SC042417 NORTHCOTE LODGE TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
NORTHCOTE LODGE TRUST CONTENTS Page Reference and administrative details of the Charity• its Trustees and advisers Trustees. report Trustees. responsibllltles statement Independent auditors. report on the financial statements Statement of financlal activities 8-10 Balance sheet 12 statement of cash flows 13 Notes to the financial statements 14-27
NORTHCOTE LODGE TRUST REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trugtaos Charlty reglstered number SCCM2417 Prlnclpal offlce 191 Cralgton Road Aberdeen AB15 7UB Ind•pendent auditors AAB Audit & Accountancy Lirnited Kingshill Vi8W Prime Four Business Park Kingswells Aberdeen A816 8PU Bankers Roydl Bank of Scotland 40 Albyn Pla Aberdeen AB10 1YN Sollcltorn R&R Urquhart LLP 117- 121 Hbgh Street Forres IV36 1 AB Page 1
NORTHCOTE LODGE TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their report with the financial statements of the charity for the year ended 31 March 2025. The Trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements. the requirements of the charitys goveming document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). CONSTITUTION The Trust's goveming document is its Trust Deed. OBJECTIVES AND PRINCIPAL ACTIVITIES The Trustees shall hold the Trust Fund in the following manner and for the following purpos8S: The provision wrthin the Roman Catholic Diocese of Aberdeen of care, nursing. and general physical, mentsl and spiritual welfare of any persons requiring such care. nursing and welfare including the foregoing generality. the infirm, aged and poor and other charitsble matters. The Trustees value the inestimable worth and dignity of each human being as made in the image and likeness of God. Commitment to these ideal leads the Trustees to provide for all that need care. a service that is marked by spirit of love and compassion. Quality of life is paramount. Dignity. privacy and confidentiality are part of the ethos. The residents right to choose is supported as are the involvement of family and friends in the resid8nt's care. The whole person. including all aspects of physical, mentsl, emotional. spiritual and social welfare are addressed. The Trustees aim to provide high quality residential care in a safe and welcoming envlronment for slxty residents. The training of a high percentage of staff to a better grade than is the norm is one of our main strat8gi8S to obtain these objectives. STRUCTURE, GOVERNANCE AND MANAGEMENT The number of Trustees shall not be less than three. The Trustees are entitled by way of a resolutlon passed by a majority vote at a meeting of Trustees to appoint any individual as a Trustee. If the Trust has four members a quorum would need to be three. If the Trust has five members a quorum would need to be three. If the Trust ha5 six members a quorum would need to be three. The skill mix of the Trustees is used to assess the appropriateness of any new Trustee. The present Trust includes a medical practitioner, a hoteller. a retired quantity suprfeyor, a retired deputy headmistress, a practicing lawyer and a retired general nurse. Strategic meetings are held quarterfy. The Trustees meet more frequently if circumstances so demand. Subcommittees of Trustees with particular skills and experience meet as required. A monthly meeting of the Care Home Manager, the Finan Officer and one Trustee occurs to discuss the monthly accounts and any extraordinary expenditure. There are also announced and unannounced inspections by individual Trustees. The day-to-day management of the home is delegated to the Care Home Manager. an Assistsnt Care Home Manager, her two full time deputies. one full time assistant deputy and a Quality A55urance Manager. The Care Manager prepares a monthly management report and the Finance Officer a monthly financial report for the Truste8s. Major decisions such as the purchase of expensive items of equipment. changes in policy and future Strategy are taken by the Trustees. A simple majority is required for thes8 decisions. Page 2
NORTHCOTE LODGE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 RISK MANAGEMENT The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide assurance against fraud and error. REVIEW OF MAJOR RISKS Fundlng The admission of new residents can be suspended at any time by the local authority. With over one hundred members of staff, wages alone are the biggest expense for the home and because of necessary increases in this area that are outlined in the financial review the decision to increase the number of self-funding residents to more than 40 is vindicated. Furthermore. the Trust needs to provide for future planned maintenance and therefore an annual operating surplus is needed. The funding by the Local Authority has been poor and in the last five years well below the increase in the cost of living. To this extent the self-funding residents, to some extent, subsidise those funded by the Local Authority. Despite this. the Care Home Manager regulates the waiting list by admitting residents by their degree of need not their funding status. The home has more than thirty vulnerable elderly on the waiting list. This is a testament to the quality of care provided by the home and the desperate need in Aberdeen. Covld Pandemic Impllcations NHS Inform advice on Covid19 has changed after a review by Public Health Scotland and Scottish Govemment Clinicians. The guidan to isolat8 for 5 days after a positive test has been removed. The asymptomatic Covid 19 testing before discharge from Scottish hospitals to Care Homes and Hospices has been removed. Staff returning to work after suffering a respiratory infection should do so in discussion with their line manager. This will allow appropriate risk assessments to take place. The Care Home Manager is taking a very cautious approach to staff retuming to work after a respiratory infection. Staff Recruiting and retaining good staff is a problem encountered by all care homes for the elderly. The level of funding is such that salaries are not high. By offering training opportunities and keeping a happy contented home we hope to maintain our ability to attract good loyal staff. We are fortunate to have five trained nurses in management positions: the manager. assistant manager, two deputies and a quality assurance manager. A qualified nurse is on duty seven days a week. The Care Home Manager is a qualified nurse and a qualified social worker. The horne is very fortunate to have her. Supporting staff through the SVQ process is ongoing. Changes to Home Office Regulations for Sponsorship of overseas workers means were able to apply for a Sponsorship LInce. We have five Undefined Certificates in place and three Defined Certificates of Sponsorship. In the main those sponsored have been a great asset to the home. The accountants. AAB Business & Tax Advisory LLP. have continued to be an asset to the Trust and have provided support to the Finance Manager. The new Office Manager is working well and has taken on the role of Dats Protection Officer. A payroll assistsnt to our finance manager has been appointed and is a great help to her and the department. The set up of a data base was delayed by the Covid Pandemic. We chose Person Centred Software and appointed a manager to implement the change. The change went live in May 2024. The staff spent time training and have adopted the use of hand- held devices to record interactions with the residents with surprising ease. Both managerial and caring stsff have welcomed the change. Page 3
NORTHCOTE LODGE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The Activilies Coordinators continue to provide an excellent program for the residents every day of the week. Residents who do not wish to take part in group activities are now having one to one attention. A catering committee has been inaugurated and involves residents. families and staff. The new house keeping manager who has a breadth of experience is a real asset to the home. The kitchen is producing delicious meals that are a credit to th8 chef and his assistant. The three maintenance men are Working well together. The wheel-chair accessible car is a great asset. It was quite old and has been r8placed with a naw one. A new third pool car is available for staff to help with appointments or home visits and has freed up the wheelchair accessible car for residents with adVand needs. The introduction of a ULEZ in Aberdeen has meant our mini- bus is non- compliant. However it is still in very good condition and is ralY used in the ULEZ area. It was dacided to commission a second wheelchair accessib18 car so that residents who had medical appointments at the same time could be accommodated. The sensory garden is now complete and a tribut8 to the two volunteers who help8d with its construction. It is used daily by the resldents. Health and Safety Policies and procedures are in place accompanied by appropriate training to minimise any risk to residents or staff and are regularly updated to take notice of new regulations or advice. Worknest, formally Law at Work, gives advice on Health and Safety procedures. The Fire and Rescue Servi advise on fire safety. There are regular training sessions on Flre Safety. COSHH, Health & Safety, First Aid. Infection Control and Food Hygiene. Abuse All members of staff and volunteers are members of the PVG scheme. All the staff undergo training so that they can support and protect residents from abuse. Achlevemont and Performance The home is spacious and well lit. All sixty bedrooms have an en suite bathroom and view5 over the extensive gardens. There are four separate dining rooms and six dayrooms throughout the home. There is a hairdressing salon. café and activities room. We have a bar room on the first floor that is very popular. It is usually full of residents on Friday aftemoons. We are encouraging the resident's families to use the cafe again and add to the buzz and happy atmosphere of the home. The landscaped gardens are well established and blooming. The sensory garden is complete wtth wheelchair friendly paths, a pergola and seating areas. The planting is complete, with fruit trees. shrubs, roses and raised beds for the k8en gardeners among the residents to use. The reputation of the home remains high and at the ts'me of writing this report there are more than thirty people on the waiting list for admission. The home now has a website www.narthcotelodgecarehome.co.uk. Page 4
NORTHCOTE LODGE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 FINANCIAL REVIEW Pension contributions remain at 80/0 and the Trust continues to pay 5Yo and the stsff 3Yo. The number of carers has been increased to cope with frail residents needing two carers to provide for their needs. The staff were awarded a 9.8'A wage increase in April 2024. This was to improve retention and help with recruitment. This along with, the pension contrtbutions and the appointment of extra caring staff, kitchen staff, house-keeping stsff, maintenance, dining room and office staff has meant a very big increase in the wage bill. The improvement in the quality of care as a consequence of the increased staffing is a reward in itself. The viability of the home depends on a high level of occupancy and we have a very long waiting list which bodes well for the future. A fixed deal contract is in place and will for some time shield us from the massive increases in fuel bills. There has been an increase in costs relating to cleaning equipment. residents care supplies and PPE. This is due to the Covid pandemic. We have been advised byAHSCP to have at least one month's supply of PPE instore. It was decided to hire all the laundry equipment from CAS Duncan. The hire agreement includes the use of brand- new equipment and all breakdown and servicing costs. There has therefore a large increase in equipment hire costs. Insurance for Care Homes has gone through the roof. Evon getting a quote is almost impossible. We are fortunate that our insurers continue to Insure us but at an increased premium. Baxter Dunn and Gray produced a very comprehensive planned maintenance budget for the next thity years. There is an ambition to generate a surplus to pay for planned maintenance and the split in the proportion of self- funding residents has meant that the home is also making an effort to cover depreciation costs. SSSC insists that all carers have an SVQ qualification of 24. This is mandatory even for staff with nursing qualifications. This has implications for the training budget and eventually wages. The training costs alone amount to £12,000. It has been spread over two years. Most of our carers have obtained at least SVQ 2 Qualification. The trust continues to invest surplus monies with Rathbones (formally Speirs and Jefftey). RESERVES POLICY As stated, the main expense for the home is the staff wage5. For the coming year, a wage budget of over £3.090,000 has been allocated. The Trust's reserve policy is to have the equivalent of at least four months wages in free reserves. This would require reserves of at least £1,030,000 based on the 2024125 budget. On th8 31 st of March 2025. the free reserves were over £2,000,000. Therefore. the Trust is meeting its reserves policy. Further resenies are a150 required to cover depreciation costs and the planned maintenance. Page 5
NORTHCOTE LODGE TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 FUTURE DEVELOPMENTS Work on the gardens continues. It is hoped we may be able to convert the srnokn'ng pavilion into a s8cond summerhouse. During and after the Covid outbreak it was irnportant to keep staff working in only on? area of the home. AS result, the sensory room was requisitioned to act as a staff room. It is now the office for the assistant care home manager. Tho sensory room is now located in the cherry sitting room. The bathroom on the first floor, Ihat was never used has been converted into a staff room. An extra nurse base has been established on the upper floor. Person Centred Software went live in May 2024 and is working well. As energy costs splral It was agreed to look Into th8 posslblllty of solar panels. A power cut resulted in problems with door openings and dosures. It was agreed to explore the purchase of a generator to maintain essential operations within the home during a power cut. The outer main door causes problem5 for wheelchair users. It is in the process of being attered to make it rnore wheelchair friendly Approved by Drder of the members of thè board of Trust88s and signed on their behalf by. Date.. Page 6
NORTHCOTE LODGE TRUST STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The Trustees are responsible for preparing the Trustees, report and the flnancial statements in accordance with applicable law and United lQngdom Accounting Standards (United Kingdom Generally Accepted Accounting Practica). Th8 law applicable to charities in Scoland requires the Trustees to prepare financial statements for each financial which give a true and fair vtew of the state of affairs af thft Charity and of its incoming resources and application of resourc8s, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policles and then apply them consistently, observe tha methods and prinuples of the Charities SORP (FRS 102): mak8 judgements and accounting estimates that are reasonable and prudent. state whether applicable UK Accounting Standards IFRS 102) have been followed, subjoct to any material departures disclosed and explained in the financial statements: prepare th8 financial statements on the going concem basis unless it is inappropriat8 to presume that the Chanty will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficienl to show and explain the Charlty's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the flnanclal statements comply with the Charitles and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Trust deed. They are also responsible for Safeguarding the assets of the Charity and hence for taklng reasonabla st8ps for the preventlon and detection of fraud and other Irregularitles. Approved by order of the members of th8 board of Trustees and signed on Its behalf by: Data., Page 7
NORTHCOTE LODGE TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF NORTHCOTE LODGE TRUST Opinion We have audited the financial statements of Northcote Lodge Trust (the 'charity) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom GenerallyAccepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitls affairs as at 31 March 2025 and of its incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice" and have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. Basis for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Stsndard. 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 concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitys ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for Issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Other informatlon The other information cornprises the information included in the annual report other than the financial statements and our auditors, report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion theon. 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 misststed. 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 w8 have performed. w8 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 8
NORTHCOTE LODGE TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF NORTHCOTE LODGE TRUST (CONTINUED) Matters on whlch we are required to report by exception We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion- the infomiation given in the Trustees. report is inconsistent in any material respect with the financial 5tatements', or proper accounting records have not been kept: or the financial statements are not in agreement wilh the accounting records and retums; or we have not reiVed all the information and explanations we require for our audit. Responslbilltles of trust885 As explained more fully in the trustees, responsibilities statement, the Trustees are sponSible for the preparation of th8 financial statements which 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 charftys ability to contlnue 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. Audltors. responslbllltles for the audlt of the flnancial statements We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about wheth8r the financial statements as a whole are free from material misstatement, whether due to fraud or eOr, and to issue an auditors, report that includes our opinion. Reasonable assuRnce 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 inftuence 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 lin8 Wlth our responsibilities. outlined above. to detect material misststements In respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks within which the charitable trust operates. focusing on those laws and regulations that have a direct effect on the detemiination of material amounts and disc105ures in the financial statements. The laws and regulations w8 considered in this Context were the Trustee Investment (Scotland) Act 2005. together with the Charities SORP {FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable trust's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable trust for fraud. The laws and regulations we considered in this context for the UK operations were Anti- fraud, bribery and corruption legislation, Health and safety legislation and Charity regulations. Auditing standards limit the required audit procedure5 to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. Page 9
NORTHCOTE LODGE TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF NORTHCOTE LODGE TRUST (CONTINUED) We identified the greatest risk of material impad on the financial statements from irregularities including fraud to be.. Management override of controls to manipulate the companls key p8rformance indicators to meet targets. Timing and completeness of revenue recognition. and Compliance with relevant laws and regulations which directly impact the financial statements. Our audit procedures to respond to these risks included.. Testing of joumal entries and other adjustments for appropriateness. Reviewing judgements made by management in their calculation of accounting estimates for potential management bias; Enquiries of management about litigation and claims and inspection of relevant correspondence-, and Reviewing regulatory correspondence with the Office of the Scottish Charity Regulator and reading minutes of meetings of those charged with govemance. Because of the Inherent limitations of an audit. there Is a risk that we will not detect all iegUlar1tie$. including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment. forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .ukJauditorss auditor5, report. onsibilities. This description forms part of our Use of our report This report is made solely to the charitys trustees. as a body. In accordance wlth regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitys trustees those matters we ar8 required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and its trustees. a5 a body, for our audit work. for this report, or for the opinions we have formed. AAB Audit & Accountancy Limited Statutory Auditor Kingshill View Prime Four Business Park Kingswells Aberdeen AB15 8PU Date.. A%&dSt 24>1S AAB Audit & Accountancy Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 10
NORTHCOTE LODGE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted funds 2025 Total funds 2025 Total funds 2024 Note Income from: Donations and legacies Charitable activilies Other trading activities Inv8slments 7.060 3,861,689 7.060 3.861,689 44 56.726 10,463 3,710,143 10,296 52,753 56.726 Total income 3.925,519 3,925,519 3,783.655 Expendlture on: Raising funds Charitable activities 377 4,051.254 377 4.051.254 735 3,616,553 Total expendlture 4,051,631 4.051,631 3.617,288 Other movements on investments (41,404) (41,404) 150,236 Net movement in funds (167.516} (167.516) 316,603 Reconciliation of funds: Total funds brought forward Net movement in funds 9,027.005 (167,516) 9,027,005 (167.516) 8,710,402 316,603 Total funds carrled forward 8.859,489 8,859,489 9,027.005 The Ststement of financial activities includes all gains and losses recognised in the year. The notes on pages 14 to 27 fomi part of these financial statements. Page11
NORTHCOTE LODGE TRUST BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Note Flxed assets Tangible assets Investments 13 14 5.996,034 2,502,541 6,092,121 2.393.813 8.498.575 8,485,934 Current assets Stocks Debtors Cash at bank and in hand 15 6,495 176,969 330.139 6.837 153.305 564,415 16 513.603 724,557 Creditors.. amounts falling due within one year 17 {152.689) (183,486) Net current assets 360,914 541,071 Total assets less current Ilabilities 8,859,489 9,027,005 Total net assets 8,859.489 9,027,005 Charity funds Restricted funds Unrestricted funds 18 18 8,859,489 9.027.005 Total funds 8,859.489 9,027,005 The financial statements were approved and authorlsed for Issue by the Trustees and signed on their behalf by. The notes on pages 14 to 27 fomi part of these financial statements. Page 12
NORTHCOTE LODGE TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Cash flows from operating activlties Net cash used in operating activities (61.327) 487.917 Cash flows from investlng actlvlties Proceeds from th8 sale of tangible fixed assets Purchase of tangible fixed assets (Sale)IPurchase of investrnents Inte$t received 17.000 (73,470) (22,367) (108,729) (445,475) 6,596 7.514 Net cash used In Investlng actlvltles (158,603) {460,328) Cash flows from flnancing activitles Repayments of finance leases (14.347) (3,985) Net cash used in financlng activities (14,347) (3,985) Change In cash and cash equlvalents in the year Cash and cash equivalents at the beginning of the year (234,277) 564.415 23,604 540.811 Cash and cash equivalents at the end of the year 330,138 564,415 The notes on pages 14 to 27 fomi part of these financial statements Page 13
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General inforniation Northcote Lodge Trust is a charity trust registered in Scotland. The Trust's registered office is at 191 Craigton Road, Aberdeen. AB15 7UB. The principal activies of the Trust is the provision within the Roman Catholic Diocese of Aberdeen of care, nursing. and general physical. mental and spiritual welfare of any persons requiring such care. nursing and welfare including the foregoing generality. the infim. aged and poor and other charitable matters. Accounting pollcles 2.1 Basis of preparation of flnancial stat8ments The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). the Charities and Trustee Investment (Scotland) Act 2005 and th& Charities Accounts (Scotland) Regulations 2006 las amended). Northcote Lodge Trust me8ts the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless Otherwise stated in the re18vant accounting policy. 2.2 Golng concern The trustees, having made due and Careful enquiry. a of the opinion that the trust has adequate working capitsl to execute its operations over the next 12 months. The trustees, therefore, have made an infonned judgement, at the time of approving the financial statements. that there is a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Despite the pandemic still being ongoing. the trustees remain confident that the Trust can continue to operate as a going concern. This assessment is based on the understanding that the Trust will continue to trade ov8r the coming months. This, along with the level of retained res8rves will allow the Trust to continue to meet it's obligations as they fall due and operat8 as a going concem. As a result, the trustees have continued to adopt the going concem basis of accounting in preparing the annual financial statements. 2.3 Fund accountlng Gen8ral funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such fijnds are charged against the specific fund. The aim and use of each restrtcted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 14
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (continued) 2.4 Income All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either.. the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made. or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity. or the charity is aware of the granting of probate. and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset 2nd disclosed if material. 2.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs. including support costs involved in undertaking each activity. Direct costs attribulable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs ar8 allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Govemance costs are those IncUed in connection with administration of the charity and Compliance with constitutional and statutory requirements. Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading actlvities that raise funds. Charitable activities and Govemance costs are costs incurred on the chariws operations, including support costs and costs relating to th8 governance of th8 charity apportioned to charitable activities. Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on d1ctlY undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.6 Tanglble flxed assets and depreclatlon Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition. under the Cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impainnent losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 15
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policles {continued) 2.6 Tanglble fixed assets and depreclatlon (contlnued) Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. using the straight-line method. Depreciation is provided on the following basis: Freehold propety Plant and machinery Motor vehicles Fixtures and fittings 200/0 250/0 2.7 Investments Fixed asset investments are a form of financial instrument and are inttially recognised at their transaction cost and subsequently measured at fair value at the balance sh88t date. unless the value cannot be measured reliably in which case it is measured at cost less impaiment. Investment gains and losses, whether realised or unrealised. are combined and presented as 'Gainsl(Losses) on Investments. in the statement of financial activities. 2.8 Finance leases and hire purchase Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Asset5 acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leas8S are those where substantially all of the benefits and risks of ownership ar8 assumed by the Charity. Obligations under such agreements are included in creditors, net of the finance charge allocated to futu periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constsnt periodic rate of charge on the net obligation outstanding in each period. 2.9 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 2.10 Taxation The Trust is exempt from tax on its charitable activities. 2.11 Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity., this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.12 Debtors Trade and other debtors are recogni5ed at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.13 Cash at bank and In hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 16
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policles (continued) 2.14 Liabilitles and provislons Liabilities are recognised vAien there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or senlices It must provide. Provisions ar8 measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is mat8rial, the provision is based on the present valu8 of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost. 2.15 Penslons The Charity contributes to a defined contdbution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. Income from donatlons and legacles Unrestricted funds 2025 Total funds 2025 Total funds 2024 Donations 7,060 7,060 10,463 Total 2024 10.463 10.463 Income from charitable activities Unrestricted funds 2025 Total funds 2025 Total funds 2024 Provision of care services 3,881.689 3,861.689 3.710,143 Total 2024 3,710.143 3.710,143 Page 17
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from other trading activities Income from fundraislng events Unrestricted funds 2025 Total funds 2025 Total funds 2024 Other Income 44 10,296 Total 2024 10,296 10,296 Investment Income Unrestricted fijnds 2025 Totsl funds 2025 Totsl funds 2024 Deposit account interest Net income from investments 6,598 50,130 6,596 50,130 7.514 45,239 56.726 56.726 52.753 Total 2024 52.753 52.753 Expenditure on raising funds Costs of ralsing voluntary Income Unrestricted funds 2025 Total funds 2025 Totsl fijnds 2024 Costs of raising voluntary income 377 377 735 Total 2024 735 735 Page 18
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysls of expenditure on charitable activities Summary by fund type Unrestricted funds 2025 Total 2025 Total 2024 Provision of care services 4,051,254 4.051,254 3.616,553 Total 2024 3,616.553 3,616.553 Analysis of expendlture by actlvltles Activities undertaken directly 2025 Support costs 2025 Total funds 2025 Total funds 2024 Provision of care services 3.631,389 419,865 4,051,254 3.616,553 Total 2024 3,247,771 368,782 3,616,553 Page 19
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysls of expenditure by activities (continued) Analysis of direct costs Provision of car8 service 2025 Total funds 2025 Total funds 2024 Staff costs Depreciation Food, provisions and medical supplies Ratas and water Heat & Light Travel R8pairs and maintenance Printing and stationery Telephone Premises expenses Equipment hire Recruitment expenses Bad debt write off Subscriptions Miscellaneous expenses Sensory garden expenses Motor expenses Insurance Sundry expenses Consultancy fees Cleaning Database costs Computer expenses 2,808,508 164,892 208.598 22,474 116.452 56 4,285 12,175 481 79,080 17,928 198 2.808,508 164,892 208.598 22,474 116.452 56 4.285 12,175 481 79,080 17,928 198 2.489,716 166.740 193.374 18,877 100,233 68 7.437 14,643 530 74.696 18,850 515 8,376 122 194 689 3.744 55.329 6,016 15,554 42,037 6,540 23.491 140 140 (12,335) 5,992 5,498 62,892 4.496 25.457 53,174 17.713 33.235 (12,335) 5,992 5,498 62,892 4,496 25,457 53.174 17.713 33,235 3.631,389 3,631,389 3,247.771 Total 2024 3,247,771 3.247,771 Page 20
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysls of expenditure by activities {continued) Analysis of support costs Provision of care service 2025 Total funds 2025 Total funds 2024 Staff costs Bank charges Govemance costs 376.025 1.795 42,045 376.025 1,795 42,045 342,958 1,584 24,240 419,865 419,865 368.782 Total 2024 368.782 368.782 10. Auditors, remuneration 2025 2024 Fees payable to the Charitls auditor for the audit of the Chartys annual accounts 15.300 14.575 11. Other movements In Investments 2025 2024 unalIsed gainl(loss) on investments Manag8m8nt charges Loss on disposal of investments 294,874 501.652 (17,642) (14,690) (318,636) (336,726) {41.404) 150,236 Page 21
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. Staff costs 2025 2024 Wages & Salaries Social security costs Contribution to defined contribution pension schemes 2,821.581 254,794 108,158 2.521,844 216,747 94.083 3,184,533 2,832,674 The average number of persons employed by the Charity during the yearwas as follows: 2025 2024 No. Management Operational 101 102 108 109 One employ88 r8ceived remuneration amounting to mor8 than £60,000 in 8lther year. Durtng the year. no Trustees received any remuneration (2024 - £NIL). During the year. no Trustees received any benefits in kind (2024- £NIL). During the year. no Trustees received any reimbursed expenses (2024 - £72). The key management personnel of the charlty comprise the care horn8 management team. The total employee ben8fits of the key management personnel were £376,025 (2024 - £342.958). Page 22
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. Tangible flxed assets Freehold propety Plant and machinery Motor Fixtures and vehicles Fittings Total Cost or valuatlon At 1 April 2024 Additions Disposa15 7,551,191 117,502 1.541 77,044 57.040 (27,989) 663,809 14,890 8,409,546 73.471 (27,989) At 31 March 2025 7.551,191 119,043 106,095 678,699 8.455,028 Depreclatlon At 1 April 2024 Charge for the year On disposals 1,510.784 134.292 96.908 6.010 69.411 13.663 (23,324) 640,322 10,928 2,317.425 164.893 (23,324) At 31 March 2025 1,645.076 102,918 59,750 651.250 2,458,994 Net book value At 31 March 2025 5,906,115 16,125 46,345 27,449 5,996,034 At 31 March 2024 6,040.407 20.594 7,633 23.487 6.092,121 14. Flxed asset Investments Listed investments Cost or valuatlon At 1 April 2024 Additions Disposals Revaluations 2,393,813 150,131 (318,636) 277,233 At 31 March 2025 2,502.541 Net book value At 31 March 2025 2,502,541 At 31 March 2024 2.393,813 Page 23
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Stocks 2025 2024 Consumables 6.495 6.837 16. Debtors 2025 2024 Due wlthln one year Trade debtors Prepayments and accrued income 94,914 82,055 62.374 90,931 176,969 153.305 17. Creditors: Amounts falling due within one year 2025 2024 Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contracts Accruals and deferred income 28,435 54,097 42.698 59,824 14,347 66,617 70.157 152.689 183,486 Page 24
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Statement of funds Statement of funds - current year Balance at 31 March 2025 Balanc8 at 1 April 2024 Gainsl (Losses) Income Expenditure Unrestricted funds General Funds - all funds 9.027.005 3,925,519 (4,051.631) {41,404) 8.859,489 Statement of funds . prior year Balance at 31 March 2024 Balance at 1 April 2023 Gainsl (Lossas) Incom& Expenditure Unrestrlcted funds General Funds - all funds 8.710,402 3,783.655 (3,617.288) 150.236 9,027,005 19. Analysis of not assets between funds Analysis of net assets between funds - current year Unrestrtcted funds 2025 Total funds 2025 Tangible fixed assets Fixed asset inv8Stm8nts Current assets Creditors due within one year 5,996,034 5.996.034 2,502,541 2,502,541 513.603 513,603 {152,689) {152,689) Total 8.859.489 8.859,489 Page 25
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. Analysis of net assets between funds (continued) Analysis of net assets between funds - prlor year Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 6.092,121 6.092.121 2.393,813 2.393,813 724,557 724.557 (183,486) (183.486) Total 9,027,005 9,027.005 20. Reconclliatlon of net movement in funds to net cash flow from operatlng actlvltles 2025 2024 Net incomelexpenditur& for the year (as per Statement of Financial Activities) (167.516) 316,603 Adjustments for: Depreciation charg8S (ProfityLoss on the sale of fixed assets Decreasel(increase) in stocks Increase in d8btors (Decreaseylncrease In creditors Interest receivable 164,893 {12,336) 342 {23,664) (16,450) {6,596) 166,740 194 (111) {30,992) 42,997 (7,514) Net cash provlded byl(used In) operating activities (61,327) 487,917 21. Analysls of cash and cash equlvalents 2025 2024 Cash in hand 330.138 564,415 Total cash and cash equivalents 330.138 564.415 Page 26
NORTHCOTE LODGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. Analysis of changes in net debt At 1 April 2024 Cash flows At 31 March 2025 Cash at bank and in hand 564,415 (14,347) 1234,276) 14.347 330.139 Finance leases 550,068 (219.929) 330,139 23. Pension commitments The charity contributes to a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. The amount contributed during the year was £108,15812024 - 94,083). At the year end there is a balance of £nil {2024 - £nil) to be paid into the pension schem8. 24. Operatlng lease commltments At 31 March 2025 the Charity had commitments to make future minimum lease panentS under non- cancellable operating leases as follows- 2025 2024 Not later than 1 year Due 1-2 years Due 2-5 years 17.280 17,280 8,526 17,280 17,280 23.098 43.086 57,658 25. Related party transactlons Control During the year the Trust was controlled by the trustees. Transactions Through the running of the Charity the Trustees may occasionally require to pay expenses in relation to the running of the Charity which will be reimbursed. During the year no Trustees received reimbursement of expenses in relation to expenses incurred personally through their positions as a Trustee (2024 - £72). Page 27
NORTHCOTE LODGE TRUST INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 2025 2025 2024 2024 Income Legacies and donations Investment income Resident's board charges Charitsble activities 7.060 56.726 3,861,689 10.463 45,239 3.710.143 17.810 3,925,519 3,783,655 Other movements on investments Unrealised (lossygain on investments (41.404) 150,236 (41,404) 150,236 Gross Income In the reporting period 3.884.115 3.933,891 Less: Cost of generatlng voluntary Income Entertainment 377 735 377 735
NORTHCOTE LODGE TRUST INCOME AND EXPENDITURE ACCOUNT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 2025 2025 2024 2024 Charltable actlvitles Gross wages Social security Pension Food, provisions and medical supplies Rates and water Insurance Heat and light Repairs and maintenance Telephone Printing and stationary Motor expenses Sundri8S 2.501,481 219,407 87,620 208.598 22,474 62.892 116.452 4.285 481 12,175 5,498 2,136 2.360 25.457 2.228,984 185,119 75,613 193,374 18.877 55,329 100.233 7.437 530 14,643 3.744 2,037 3,979 15,554 8,376 42.037 23.491 68 74.696 18,850 515 122 166,740 689 194 6,540 Miscellaneous expenses Consultancy fees Bad debts Cleaning Computer expenses Travel Premises expenses Equipment hire Recruitment expenses Subscriptions Depreciation of tangible fixed asset Sensory garden expenses (GainVLoss on disposal of fixed assets Database costs 53,174 33.235 56 79,080 17,928 198 140 164,892 5.992 (12,336) 17.714 3,631.389 3,247.771 Support costs Accountancy Prof8ssional fees Auditor's remuneration Wage5 and salaries National insurance Pension costs Bank charges and interest 5,090 16,225 20.730 320.100 35.387 20.538 1.795 6.030 710 17,500 292.860 31,628 18,470 1,584 419.865 368,782 Total expenditure Net incomel(deficit) for the reporting period 4.051.631 3,617.288 {167,518) 316,603