The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 July 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's articles of association and its accompanying guidance notes, 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 ).

The charity's objects are to operate as a Care Home in Govan, Glasgow under the patronage of the Franciscan Sisters Minoresses and the provision of care for those in need by reason of age, ill health or disability. The home has a capacity at 40 rooms, all providing en-suite facilities.

Since opening, the Home has been a source of great comfort to thousands of patients and their families. The Care Home is embedded in the finest traditions of the Catholic Faith and since its foundation it has been, and remains, open to all in need of care regardless of race, gender, religion, or diagnosis ensuring that no individual is ever excluded.

The Home continues to do everything possible to ensure the best resources are available for both the present and the future to support the continuing care of patients and their families.

The Trustees have paid due regard to guidance issued by OSCR in deciding what activities the charity should undertake.

The Trustees are pleased with the continued progress of the charity. The charity operations are regulated by the Care Inspectorate.

Trade was transferred on 1 August 2018 from St Francis Nursing Home. St Francis Nursing Home retains the property which is occupied by St Francis Care Home free of charge.

During the financial year the charity was solvent at all times: that is, with adequate reserves and assets to meet all liabilities of which the Trustees were aware. This position reflects prudent financial planning and active cost management, which enabled the charity to absorb increased operating costs, including higher staff costs, while reporting an improved surplus for the year. We remain committed to continuous improvement to ensure the Care Home continues to excel. The Trustees accordingly consider the projections for 2025/26 remain fair allowing the organisation to deliver activities in line with its aims and objectives and continue to meet its liabilities as they fall due.

The home has implemented a new accounting system to allow better and more timely reporting of financial performance. This will be measured against budgets being prepared by the board of management

The Trustees have reviewed the charity's cash flow forecast for the next 12 months and, based on cost savings and planning to increase future fees, they believe the organisation can meet their liabilities as they fall due since the year end. The Trustees are therefore confident that the Care Home is a going concern.

The Trustees have agreed reserves will be maintained as cash until a level of unrestricted reserves is equivalent to 3-6 months of running costs. The level of general reserves as at 31 July 2025 was £565,956.

The charity is a company limited by guarantee. The company was incorporated on 31 July 2015. It took over the trading activities of St Francis Nursing Home on 1 August 2018. Its governing document is the Memorandum and Articles of Association.

Governance – The Trustees are responsible for the strategic direction of the organisation, setting the annual budget, employment policies, health and safety etc.

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:

None of the Trustees has any beneficial interest in the company. All of the New trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The Trustees, who are Directors of the Company for the purposes of Company Law, are appointed by the Members of the Company. Directors are appointed based on their qualifications, skills and experience and ensures all new Board Members and Trustees are informed of the Home's strategy, activities and objectives. As part of the governance review formal Director Induction will be established to ensure the Role of the Charity Trustee and Code of Conduct is in place for Board Directors.

Management - Operational management is delegated by the Trustees to a Board of Management. Two of the Trustees sit on this Board, as well as members with financial and healthcare expertise, along with the manager of the Home.

Quality Assurance – The Care Home has all relevant insurance including buildings, contents, employer’s liability and Directors Indemnity insurance The Care Home is contracted with Peninsula to provide the charity with professional support and advice on employment and human resources matters. This has the effect that providing the charity has taken the advice of Peninsula as external professional advisors, in the event that any dispute proceeds to an employment tribunal, the Care Homes insurers meet all costs and any payment that might be awarded to an aggrieved litigant.

The Trustees are responsible for monitoring the charity’s systems for internal financial controls. The system of controls aims to give the Trustees reasonable assurance that issues are identified as they arise and are dealt with appropriately in an effective and timely manner.

The Trustees, who are also the directors of St Francis Care 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that year.

In preparing these financial statements, the Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP 2019 (FRS 102);

- 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.

In so far as the trustees are aware:-

- There is no relevant audit information of which the charity's auditor is unaware and

- we have taken all the steps that we ought to have taken as trustees in order to make ourselves aware of any audit information and to establish that the charity's auditor is aware of that information.

During the previous financial year, it was discovered that the charity had been subject to instances of inappropriate use of funds by an employee relating to the prior periods totalling £74,063.30. This has been reported to the charities regulator, OSCR, as well as the police. As this is currently under police investigation further elaboration at this time is not possible. We would however say that this has been a shock to everyone at the Care Home but has resulted in significant changes to our book-keeping structure.

The Trustees' report was approved by the Board of Trustees.

Opinion

We have audited the financial statements of St Francis Care Home (the ‘charitable company’) for the year ended 31 July 2025 which comprise the Statement of Financial Activities, Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 July 2025, 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.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

- The information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- The Report of the Trustees has been prepared in accordance with applicable legal requirements

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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 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.

As explained more fully in the Statement of Trustees' Responsibilities the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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.

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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

The key factors impacting the detection of irregularities are the inherent difficulty in detecting irregularities, the effectiveness of the company's controls and the nature, timing and extent of the audit procedures performed.

We note that it can be harder to detect irregularities arising due to fraud as they may involve deliberate concealment or collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements Including, but not limited to, the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities and Trustee Investment (Scotland) Act 2005 and significant regulations relating to the sector in which the company operates.

Our procedures in relation to fraud and irregularities included but were not limited to:

- Inquiries of management whether they have knowledge of any actual, suspected or alleged fraud.

- Gaining an understanding of the legal and regulatory framework through discussion with management and identifying how the entity ensures compliance through a review of systems. Assessing the collective ability of the audit team to identify or recognize non-compliance with laws and regulations. We identified the following as significant laws and regulations for this company - Scottish charity regulations.

- Gaining an understanding of the internal controls established to mitigate risk related to fraud.

- Making an assessment of the susceptibility of the charity's financial statements to material misstatement.

- Carrying out a review of accounting systems and procedure and making an assessment on the effectiveness of its control environment.

- Identifying the principal risks where fraud could take place eg posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transaction. Discussion of these matters by the audit team.

- Addressing the risk of fraud through management override of controls by performing journal entry testing.

- Review of board minutes and relevant correspondence with regulators and legal advisors.

- Agreement of the financial statement disclosures to underlying supporting documentation.

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In particular, the more removed from the financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations.

As a result of our procedures, we did not identify any key audit matters relating to irregularities.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 charitable company'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 the 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Bryan J T Wood FCCA (Senior Statutory Auditor)            

For and on behalf of Accountants Plus (Hamilton) Ltd, T/A Accountants Plus            

Statutory Auditor

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006                        

Second Floor, Airbles House            

270 Airbles Road, Motherwell, ML1 3AT        

.........................    

Investments

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

St Francis Care Home is a private company limited by guarantee incorporated in Scotland. The registered office is McSparran McCormick, 19 Waterloo Street, Glasgow G2 6AH

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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.

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:

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.

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).

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

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

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

Basic financial assets, 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 charity’s contractual obligations expire or are discharged or cancelled.

The charity is exempt from tax on its charitable 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 charity 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.

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Depreciation is provided over the estimated useful economic lives of tangible fixed assets. The Trustees review the useful lives, residual values and carrying amounts at each reporting date, with any changes reflected in future depreciation charges.

Charitable Expenditure

Charitable Expenditure

Charitable Expenditure

Charitable Expenditure

The average monthly number of employees during the year was:

                                                                                                                                                                                                               2025                                  2024

Key management personnel remuneration         115,481                           97,437

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The restricted funds of the charity includes a grant of £4,626. The funds will be used to partially fund renewal costs for a lift.

This consists of the net assets of the former St Francis Nursing Home taken over by St Francis Care Home, at 1 August 2018 and amounts received/paid in the year to 31 July 2020. These funds are unrestricted.

During the year to 31 July 2025 the Charity paid £27,724 (2024: £11,932) for accountancy services provided by F L Walker & Company Ltd. Frank Walker sits on the Board of Management of the charity and is also a director of F L Walker & Company Ltd. The services were provided at an arms length basis.

During the year to 31 July 2025, trustee Sister Lisette Prele, was employed by the charity as Care Home Manager and received total remuneration including gross pay, employer NIC and employer pension of £60,967 (2024: £59,031) for this role.

The home operates from a building owned by St Francis Nursing Home a charity with the same trustees. No rent is charged.

The trustees were not reimbursed for expenses incurred.

There were no amounts due to related parties at the year end.

The Care Home replaced a lift after the year year end at a cost of £18,816. Grant of £4,626 received in the prior year will be utilized for this purpose.

2025        2024

Staff defalcation costs             -         74,063.30