Charity registration number SC021642
Company registration number SC140707
SEAFORTH HOUSE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SEAFORTH HOUSE LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr C Davison
Ms B S Davison
Mrs J Goodfellow
Professor R C R Davison
Mr J G Davison
Secretary
Mr C Davison
Charity number
SC021642
Company number
SC140707
Registered office
Fairburn House
Urray
Muir of Ord
Ross-shire
IV6 7UT
Auditor
MacKenzie Kerr Limited
Chartered Accountants and Statutory Auditors
Redwood
19 Culduthel Road
Inverness
IV2 4AA
SEAFORTH HOUSE LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS
Page
Trustees' report
1 - 3
Independent auditor's report
4 - 6
Statement of financial activities
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 20
SEAFORTH HOUSE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 March 2023.

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 memorandum and articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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).

Objectives and activities

The charity's objects are the provision of respite care and to provide accommodation, domiciliary and day services within the community for "persons in need" as interpreted by Section 94 of the Social Work (Scotland) Act 1968; to provide, improve, repair, maintain and manage housing; to act as trustees or agents for or to manage money, grants or other assistance received from statutory bodies; and to make charitable donations for the furtherance of respite care.

Achievements and performance

The company has met its charitable activities in recent years by operating and managing Seaforth House near Dingwall. Its main sources of funding arise from charges made for the provision of these services at Seaforth House.

Financial review

As reported below, the accumulated surplus on the unrestricted funds at 31 March 2023 was £260,220 compared to 31 March 2022 £298,780. The trustees have examined the charity's requirements for reserves in light of the nature of the charity's work and consider that unrestricted funds should amount to around two months of its operating costs, or some £152,878.

 

The year ending 31 March 2023 saw unrestricted incoming resources reduce by £966,800 from £1,843,508 to £876,708. Costs increased by £29,483 thus recording a deficit for the year of £38,560 compared to 2022 surplus of £957,723 No restricted income was received in the year and restricted expenditure was limited to depreciation on restricted assets.

 

The accumulated surplus on the unrestricted funds at the year end amounted to £260,220 (2022 - £298,780). The accumulated surplus on restricted funds at the year end amounted to £24,000 (2022 - £26,000). Net assets at 31 March 2023 amounted to £284,220 (2022 - £324,780).

 

The trustees are of the opinion that the charitable company is a going concern.

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 reasonable assurance against fraud and error. The trustees examine the major risks to which the charity is liable on a regular basis and where appropriate, systems and procedures have been established to mitigate any risks identified.

 

The trustees have identified financial stability as a major financial risk. The continued support of the trustees and of Fairburn House Limited ensures sufficient working capital for the company.

 

Non-financial risks arise from the receipt of an unfavourable report from the Care Inspectorate, and from fire, health and safety of both staff and residents. These risks are managed by ensuring that all laws and regulations pertaining to the company are adhered to and good policies and procedures are in place. IT risks are managed by the use of password protection and the regular backing up of information.

Plans for future periods

No changes to the current activities are expected in the near future.

SEAFORTH HOUSE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Structure, governance and management

Governing document

The charity is a company limited by guarantee, incorporated and registered as a charity on 13 October 1992. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The company is governed by its memorandum and articles of association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr C Davison
Ms B S Davison
Mrs J Goodfellow
Professor R C R Davison
Mr J G Davison

Recruitment and training of new trustees

The directors of the company are also the charity trustees for the purpose of the charity. New trustees are recruited by existing trustees if required. New trustees are provided with the Office of the Scottish Charity Regulator booklet - Guidance for Charity Trustees "acting with care and diligence".

Organisational structure

The management structure comprises the trustees and secretary detailed below. The trustees make strategic decisions as and when required and the manager is responsible for the day to day operations of the company. Fairburn House Limited provides administrative services to the company.

Key management remuneration

The directors consider the board of directors, who are the Charity's trustees, and the manager, Ms B S Davison, comprise the key management personnel of the charity. All directors give of their time freely and no director received remuneration in the year.

Related parties

None of our trustees receive remuneration or other benefit from their work with the charity.

The charity has an unsecured loan from Fairburn House Limited, a company which is controlled by Mr C Davison. The loan received from the trustees of the pension scheme of Mr C Davison has now been repaid on behalf of the charity by a trustee. The interest accrued on this loan balance has agreed to be waived by the board of the benefit scheme.

SEAFORTH HOUSE LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Seaforth House Limited 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 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, 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;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that MacKenzie Kerr Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed 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 was approved by the Board of Trustees.

Ms B S Davison
Trustee
24 October 2023
SEAFORTH HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS AND TRUSTEES OF SEAFORTH HOUSE LIMITED
- 4 -

Opinion

We have audited the financial statements of Seaforth House Limited (the ‘charity’) for the year ended 31 March 2023 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 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 21 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SEAFORTH HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS AND TRUSTEES OF SEAFORTH HOUSE LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

-

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

-

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

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

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

-

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

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SEAFORTH HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS AND TRUSTEES OF SEAFORTH HOUSE LIMITED
- 6 -
Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, and UK Tax legislation. (See Below)

Audit response to risk identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the Responsible Individual (RI) drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the RI's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rhona Wilson, BA, FCCA (Senior Statutory Auditor)
for and on behalf of MacKenzie Kerr Limited
25 October 2023
Chartered Accountants
Statutory Auditor
Redwood
19 Culduthel Road
Inverness
IV2 4AA
SEAFORTH HOUSE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
2
-
-
-
647,348
-
647,348

Charitable activity income

3
871,019
-
871,019
1,002,316
-
1,002,316
Investments
4
5,689
-
5,689
193,844
-
193,844
Total income
876,708
-
876,708
1,843,508
-
1,843,508
Expenditure on:
Charitable activities
5
915,268
2,000
917,268
884,847
2,000
886,847
Other
9
-
-
-
938
-
938
Total expenditure
915,268
2,000
917,268
885,785
2,000
887,785
Net (expenditure)/income for the year/
Net movement in funds
(38,560)
(2,000)
(40,560)
957,723
(2,000)
955,723
Fund balances at 1 April 2022
298,780
26,000
324,780
(658,943)
28,000
(630,943)
Fund balances at 31 March 2023
260,220
24,000
284,220
298,780
26,000
324,780

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
SEAFORTH HOUSE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
778,263
515,816
Current assets
Stocks
2,500
650
Debtors
12
22,937
111,863
Cash at bank and in hand
69,911
103,040
95,348
215,553
Creditors: amounts falling due within one year
14
(589,391)
(406,589)
Net current liabilities
(494,043)
(191,036)
Total assets less current liabilities
284,220
324,780
Income funds
Restricted funds
15
24,000
26,000
Unrestricted funds - general
260,220
298,780
284,220
324,780
The financial statements were approved by the Trustees on 24 October 2023
Ms B S Davison
Trustee
Company registration number SC140707
SEAFORTH HOUSE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
11,585
475,371
Investing activities
Purchase of tangible fixed assets
(289,815)
(906)
Investment income received
5,689
193,844
Net cash (used in)/generated from investing activities
(284,126)
192,938
Financing activities
Proceeds from borrowings
255,000
-
Repayment of borrowings
(15,588)
(569,988)
Repayment of bank loans
-
(50,000)
Net cash generated from/(used in) financing activities
239,412
(619,988)
Net (decrease)/increase in cash and cash equivalents
(33,129)
48,321
Cash and cash equivalents at beginning of year
103,040
54,719
Cash and cash equivalents at end of year
69,911
103,040
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
1
Accounting policies
Charity information

Seaforth House Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Fairburn House, Urray, Muir of Ord, Ross-shire, IV6 7UT.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), 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 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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the year end, the company had net current liabilities of £494,043 (2022 - £191,036). The company's main creditor, Fairburn House Limited has agreed not to recall its loan until the company is in a position to repay it without compromising its ability to pay other liabilities. As a result, the trustees feel it is appropriate to prepare the accounts on a going concern basis.

 

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the 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 as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Care Home fees are included on an accruals basis and represent the amount receivable from the provision of respite care.

Income from government and other grants, whether capital or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 11 -
1.5
Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6
Tangible fixed 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:

Freehold land and buildings
2% on cost
Leasehold improvements
straight line over the life of the lease
Plant and equipment
at varying rates on cost
Fixtures and fittings
15% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine 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 estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies (Continued)
- 12 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

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 rate of interest. Financial liabilities classified 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 operations 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 at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Donations and legacies
Total
Unrestricted
funds
general
2023
2022
£
£
Donations and gifts
-
647,348
Donations and gifts
Clifford Davison
-
647,348
-
647,348
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
3

Charitable activity income

Provision of respite care

Provision of respite care

2023
2022
£
£

Care home fees

815,761
790,595

Other

5,905
8,668

Charitable activity grants

49,353
203,053
871,019
1,002,316
Charitable activity grants
NHS Covid-19 grant
-
16,103
Relief application grant
28,942
117,488
CJRS Grants
-
18,000
Renewable heat incentive
20,411
50,525
Other
-
937
49,353
203,053
4
Investments
Unrestricted
Unrestricted
funds
funds
general
general
2023
2022
£
£
Rental income
5,100
4,400

Interest charges waived

-
189,435
Interest receivable
589
9
5,689
193,844
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
5
Charitable activities

Provision of respite care

Provision of respite care

2023
2022
£
£
Staff costs
636,188
674,040

Food and provisions

33,518
29,175

Hired in labour

51,501
33,160

Staff training

1,250
612

Other staff costs

1,981
733

Care inspectorate

3,540
3,889

Medical and cleaning

11,741
11,258

Uniforms and linen

32
798
739,751
753,665
Share of support costs (see note 6)
169,957
128,712
Share of governance costs (see note 6)
7,560
4,470
917,268
886,847
Analysis by fund
Unrestricted funds - general
915,268
884,847
Restricted funds
2,000
2,000
917,268
886,847
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
6
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Depreciation
27,368
-
27,368
21,518
-
21,518

Rates and water

3,818
-
3,818
3,691
-
3,691

Insurance

28,052
-
28,052
19,225
-
19,225

Light and heat

74,838
-
74,838
50,496
-
50,496

Telephone

727
-
727
982
-
982

IT and admin expenses

5,783
-
5,783
3,041
-
3,041

Repairs and renewals

8,049
-
8,049
7,827
-
7,827

Motor and travel expenses

-
-
-
939
-
939

Professional fees

1,910
-
1,910
1,776
-
1,776

Loan interest

19,412
-
19,412
19,217
-
19,217
Audit fees
-
5,500
5,500
-
2,670
2,670
Accountancy
-
2,060
2,060
-
1,800
1,800
169,957
7,560
177,517
128,712
4,470
133,182
Analysed between
Charitable activities
169,957
7,560
177,517
128,712
4,470
133,182
7
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Nurses
7
7
Care Assistants
17
20
Domestics
3
3
Cooks
3
3
Handyman
1
1
Activity co-ordinator
1
1
Office
-
1
Total
32
36
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Employees (Continued)
- 16 -
Employment costs
2023
2022
£
£
Wages and salaries
582,630
618,719
Social security costs
42,910
44,408
Other pension costs
10,648
10,913
636,188
674,040
There were no employees whose annual remuneration was more than £60,000.
9
Other
Total
Unrestricted
funds
£
general
2023
2022
Financing costs
-
938
-
938
10
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 April 2022
-
641,782
109,255
56,982
808,019
Additions
289,400
-
207
208
289,815
Transfer to held for sale
641,782
(641,782)
-
-
-
At 31 March 2023
931,182
-
109,462
57,190
1,097,834
Depreciation and impairment
At 1 April 2022
-
184,703
51,361
56,139
292,203
Depreciation charged in the year
21,853
-
5,218
297
27,368
Transfer to held for sale
184,703
(184,703)
-
-
-
At 31 March 2023
206,556
-
56,579
56,436
319,571
Carrying amount
At 31 March 2023
724,626
-
52,883
754
778,263
At 31 March 2022
-
457,079
57,894
843
515,816
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,839
46,574
Other debtors
3,244
46,419
Prepayments and accrued income
16,854
18,870
22,937
111,863
13
Loans and overdrafts
2023
2022
£
£
Loans from related parties
517,350
277,938
Payable within one year
517,350
277,938
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Borrowings
517,350
277,938
Other taxation and social security
7,905
9,753
Trade creditors
57,469
114,538
Accruals and deferred income
6,667
4,360
589,391
406,589
15
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Balance at
1 April 2021
Resources expended
Balance at
1 April 2022
Resources expended
Balance at
31 March 2023
£
£
£
£
£
Biomass heating system fund
28,000
(2,000)
26,000
(2,000)
24,000
16
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
754,263
24,000
778,263
489,816
26,000
515,816
Current assets/(liabilities)
(494,043)
-
(494,043)
(191,036)
-
(191,036)
260,220
24,000
284,220
298,780
26,000
324,780
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
17
Related party transactions

Fairburn House Limited:

A company which shares 3 trustees with the charity.

Included in creditors is an unsecured loan of £363,542 (2022 - £239,131) from Fairburn House Limited. This loan is repayable on demand, unsecured and attracts interest at a rate of 3% above base. Interest of £19,412 (2022 - £7,656) was charged on the loan during the year.

 

Seaforth House Limited also purchased services of £13,802 (2022 - £18,685), from Fairburn House Limited, and at the balance sheet date, the company owed £13,182 (2022 - £28,906)to Fairburn House Limited and this is considered a normal trade debt. During the year, Fairburn House Limited also purchased services from Seaforth House at a cost of £1,150 (2022 - £nil).

 

Fairburn Activity Centre Limited:

A company which shares 4 trustees with the charity.

Included within creditors is a loan of £53,807 (2022 - £38,807) from Fairburn Activity Centre Limited. This loan is unsecured, interest-free and has no fixed terms of repayment.

 

The charity also purchased services of £375 (2022 - £2,226) from Fairburn Activity Centre Limited and provided services of £44,424 (2022- £26,512) to Fairburn Activity Centre Limited. At the balance sheet date, the charity owed Fairburn Activity Centre Limited £nil (2022 - £159) and Fairburn Activity Centre Limited owed the charity £112 (2022 - £24,013). These amounts are considered normal trade debts.

 

Clifford Davison:

A trustee of the charity.

During the year C Davison provided a loan to the charity of £100,000. This loan is unsecured, interest free and has no fixed terms of repayment.

18
Cash generated from operations
2023
2022
£
£
(Deficit)/surpus for the year
(40,560)
955,723
Adjustments for:
Investment income recognised in statement of financial activities
(5,689)
(193,844)
Depreciation and impairment of tangible fixed assets
27,368
21,518
Movements in working capital:
(Increase)/decrease in stocks
(1,850)
100
Decrease/(increase) in debtors
88,926
(88,717)
(Decrease) in creditors
(56,610)
(219,409)
Cash generated from operations
11,585
475,371
19
Analysis of changes in net (debt)/funds
At 1 April 2022
Cash flows
Acquisitions and disposals
At 31 March 2023
£
£
£
£
Cash at bank and in hand
103,040
(33,129)
-
69,911
Loans falling due within one year
(277,938)
15,588
(255,000)
(517,350)
(174,898)
(17,541)
(255,000)
(447,439)
SEAFORTH HOUSE LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
20
Pension Commitments

The company contributes to defined contribution pension schemes on behalf of its employees. The assets of these schemes are held separately from those of the company in independently administered funds. During the period contributions payable amounted to £10,648 (2022 - £10,913). At the end of the financial year, unpaid contributions totalled £1,683 (2022 - £1,792).

21
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.

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