The trustees present their annual report and financial statements for the year ended 31 December 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 Home's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The primary objective is to provide a residential home for older people and frail people who are no longer able to look after themselves. Braeburn Home aims to provide a kindly and caring environment for the older people in its care and ensure that the building (which is owned by the General Synod of the Scottish Episcopal Church) is maintained to a high standard to ensure the comfort and safety of the residents.
During the year we refurbished and modernised the kitchen whilst continuing our program of refurbishing bedrooms. At the date of signing these accounts we have just refurbished the upstairs lounge.
A deputy manager was appointed, and this has enabled us to strengthen our approach to quality assurance by implementing a system of internal audits and reviews. We have implemented monthly staff meetings and bi-monthly meeting with residents family members which has improved lines of communication within the organisation. We have initiated a program of intergenerational care where some of our residents have enjoyed visits to a nearby nursery school and we have welcomed some of the young people from the nursery for organised visits in our home.
Our staff have all completed dementia training which means everyone Is recognised at either skilled or expert level; sensory items, such as plants, lighting and touchable items have been incorporated at various points in the home for the benefit of all, but particularly our residents living with dementia.
Results for the period
There was a deficit on operations for the period of £68,105 (2022: £77,982). However, there was an appreciation on our investment assets during the period resulting in a surplus for the year of £62,644
Reserves Policy
The Home's reserve policy is to maintain, at its own discretion, reserves to meet the future capital and revenue expenditure. Whilst total reserves stand at £1,041,792, we continue to set room rates at a level sufficient to cover anticipated expenditure plus a small margin so as not to erode reserves. A sum of £122,690 has been designated to help support residents whose personal wealth has been eroded to an extent that they can no longer self-fund their residency at Braeburn.
Investment Policy
All the Home's investments are in the Scottish Episcopal Church Unit Trust Pool. The investment objective of the Unit Trust Pool, which accords with that of the Trustees, is to earn a return on the assets, over the long term, sufficient at least to maintain the real value of the distribution to unit holders. The objective was achieved in the period under review. While the Trustees' principal concern is in relation to income generation which continues to be monitored, the rise in market value of the investments during the year is noted.
Risk Assessment and Management
The Trustees have a risk management strategy which comprises:
A regular review of the principal risks and uncertainties that the charitable company faces
The establishment of policies, systems and procedures to mitigate those risks identified in the review, and
The implementation of procedures designed to minimise or manage any potential impact on the home should those risks materialise.
The implementation of this strategy has led the Trustees to prepare a Risk Register which is tabled at each board meeting and formally reviewed annually.
The Trustees identified an exposure to risk in the following areas: welfare of residents, welfare of staff, finance, governance and inadequate policies and procedures.
The day to day business of the Home is controlled by the board of directors, which meets regularly. The care and wellbeing of the residents and staff is controlled by the home manager, supported by the board of directors. The Trustees are satisfied that systems are in place to mitigate exposure to these risks.
We will continue our refurbishment of bedrooms as vacancies allow and following the refurbishment of the upstairs lounge will turn out attention to the garden and the main entrance hall. We are keen to ensure our residents benefit from the outdoor space. We continually strive to ensure we provide a safe homely environment for our residents and staff, whilst maximising the potential from the property and garden.
Braeburn Home is a company limited by guarantee and a registered charity. The Home operates as a residential home for the elderly and is registered with the Local Authority and with the Care Inspectorate. Following consultation with the members of the Board of Directors and House Committee it was agreed to separate the functions of the Directors and those of the House Committee. The Board focuses on the management responsibilities for the smooth running of the Home in accordance with the Company and Charity law and the House Committee ensures that the day to day needs of the residents are taken in to account. A link is ensured as one Director attends the meetings of both groups.
The efficient and effective care of the residents is managed by an excellent staff team.
Registered Charity Name
Braeburn Home
Charity Registration Number
SC039330
Company Registration Number
SC327458
Principal Office and Registered Office
Braeburn Home
35 Inverleith Terrace
Edinburgh
EH3 5NU
Directors and Trustees
Mrs C Bald
Dr A Gebbie
Mrs J Green
Mr W K Ramage
Mrs S Allan
Ms S Dick (Appointed 28 September 2023)
Home Manager
Mrs S MacDonald
Company Secretary
Mrs C Bald
Bankers
Bank of Scotland
43 Comely Bank Place
Edinburgh
EH4 1AF
Auditors
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Recruitment and induction of new directors
New directors are recruited to fill any gap in the skills base of the Board. Having identified suitable persons with the necessary skills, the Board extends invitations to join. New directors are given a tour of the Home and briefed on its operation. New directors are also given financial information and details of Members' responsibilities as Trustees for charity law purposes.
Key Management Personnel and Remuneration Policy
The Trustees consider the Board of Directors and the manager of the Home as the key management personnel of the charitable company as they are in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give their time freely and no Trustee received remuneration other than the Treasurer as detailed in Note 11.
The Board review the salary of the manager of the Home on an annual basis and benchmark this against industry standards.
The trustees, who are also the directors of Braeburn Home 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 Home 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Home 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 Home 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 Home and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
A resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Braeburn Home (the ‘Home’) for the year ended 31 December 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:
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 Home in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Home’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 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.
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.
We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Home 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 Home’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.
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 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.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of grant income and the posting of transactions to the correct funds. We discussed these risks with management, designed audit procedures to test the timing and existence of donations and grant income, including reviewing of grant paperwork and terms and conditions, reviewing the allocation of costs against the correct funding and reviewed areas of judgement for indicators of management bias.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards). We focused on specific laws and regulations which may have a direct material effect on the financial statements or operation of the charity, including the Charities and Trustees Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and the Care Inspectorate.
We assessed the extent of compliance of the laws and regulations identified above by inspecting any legal correspondence, the Care Inspectorate report and making enquiries of management.
We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. However, the primary responsibility for the prevention and detection of fraud rests with the trustees. To address the risk of fraud we identified internal controls established to identify risk, performed analytical procedures to identify unusual movements, assessed any judgements and assumptions made in determining accounting estimates, reviewed journal entries for unusual transactions and identified related parties.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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 Section 44(1)(c) of the Charities and Trustees Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Thomson Cooper is eligible for appointment as auditor of the Home by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Braeburn Home is a private company limited by guarantee incorporated in Scotland. The registered office is 35 Inverleith Terrace, Edinburgh, EH3 5NU.
The financial statements have been prepared in accordance with the Home's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement 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 financial statements are prepared in sterling, which is the functional currency of the Home. 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.
Braeburn Home meets the definition of a public benefit entity as defined by FRS 102.
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 a period not less than 12 months. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Such funds may be held to finance both working capital and capital investment.
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.
Income is recognised when the Home 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. Income in respect of residents boarding fees is recognised in the period in which the service is provided.
Donations are recognised on receipt. Other donations are recognised once the Home has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income in respect of residents boarding fees is recognised in the period in which the service is provided.
Interest on funds held on deposit is included upon notification of the interest receivable from the Bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
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 attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Governance costs comprise all costs involving the public accountability of the charitable company and its compliance with regulation and good practice. These costs include costs related to statutory audit.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Expenditure on the redecoration of rooms is written off on the face of the Statement of Financial Activities when incurred, whilst the expenditure regarded as property improvements and refurbishment is capitalised in the balance sheet. Expenditure of more than £1,000 on motor vehicles, equipment and fixtures and fixtures and fittings is capitalised in the balance sheet and depreciated.
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:
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the Home 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).
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.
The Home 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 Home's balance sheet when the Home becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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, 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.
Financial liabilities are derecognised when the Home’s contractual obligations expire or are discharged or cancelled.
The charitable company is exempt from corporation tax to the extent that its income and gains is applied to its charitable objectives. The Home is not VAT registered and therefore Value Added Tax is not recoverable and is therefore included within the relevant costs in the Statement of Financial Activities.
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 Home is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Total
Total
designated
designated
Income from unit trust distribution
Agency fees, training, welfare and other staff costs
Provisions and activities
Premises costs
General administrative expenses
Accountancy Fees
All costs are allocated on a direct basis.
Governance costs includes payments to the auditors of £6,600 (2022 - £7,080) for audit fees.
Trustees were refunded expenses during the year totalling £13 (2022: £47).
The average monthly number of employees during the year was:
No Trustee received any remuneration during the year or the previous year.
The Trustees consider the Board of Directors, the manager and assistant manager of the Home as the key management personnel of the charitable company as they oversee directing, running and operating the charity on a day to day basis. The aggregate amount of employee remuneration for key management personnel during the year was £93,765 (2022: £51,405).
The property from which the Home operates is owned by the General Synod of the Scottish Episcopal Church. The Home has the right to occupy and use the property for its charitable objects. No consideration is payable for the use of the property. Expenditure incurred on the repair and maintenance of the property is capitalised in the balance sheet
The bank loan is for a period of 72 months and incurs interest at 2.5% per annum and is unsecured.
The Home operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Home in an independently administered fund. The pension charge, being contributions payable by Braeburn Home, amounted to £59,647 (2022: £54,148), This included £6,919 (2022: £513) in respect of amounts outstanding at the year end.
The charge to profit or loss in respect of defined contribution schemes was £59,647 (2022 - £54,148).
The fixed asset fund represents assets purchased with funds from a Digital Boost grant.
The Inspiring Scotland grant was received to support us funding wellbeing activities for staff post pandemic.
The Coorie In grant was received to help to provide stimulating activities for our residents during the colder winter months.
The Reverend Marie Louise Moffett Legacy is to be used for the benefit of the staff.
Incoming resources
Resources expended
Transfers
Revaluations, gains and losses
Incoming resources
Resources expended
Transfers
Revaluations, gains and losses
The resident support fund represents funds set aside to support residents with fees and expenses. This fund is supported by an element of our investments and will benefit from a corresponding amount of investment income.
During the year, Caroline Bald provided a short term loan of £10,000 to help the charity with cashflow. This has repaid during the year.
The Charity is indebted to the General Synod of the Scottish Episcopal Church for providing office premises rent free. The valuation placed upon this contribution by the Trustees is £36,400 per annum. The income equivalent is recognised within incoming resources as a donated service, and an equivalent charge is included within Premises Costs. The property is the subject of a quinquennial review which is due to take place within a couple of years and a estimate of the likely rent charge will be sought.