annual report & accounts...22 annual report & accounts march 2019 33 broughton house, park...

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ANNUAL REPORT & ACCOUNTSF O R T H E Y E A R E N D I N G 3 1 S T M A R C H 2 0 1 9

R E G I S T E R E D C H A R I T Y N O . 115 5 2 2 5

GEORGE SIMMSAGED 95ROYAL MARINES COMMANDOD-DAY VETERANBROUGHTON HOUSE RESIDENT

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Broughton House, Park Lane, Salford. M7 4JD0161 740 2737 www.broughtonhouse.com@broughtonhouse

The Charity is registered with the Charity Commission under charity number 1155225.

All assets and land were transferred from the former Unincorporated Charity (number 227864) to the new Incorporated Charity (number 1155225) on 1 April 2014.

contentsChairman and Chief Executive’s Foreword 5

About Us 6

Our Vision

Our Values

Public benefit

Governance & Management 8

The Trustee Body

New Members of the Team

Achievements & Performance 12

Objectives

Charitable Activities

• The Care Home

• The Support Hub

Veteran Care Village Project

Fundraising Activities

Our Supporters

Financial Review 28

Income

Restricted Fund

Expenditure

Reserves Policy

Investment Powers and Policy

Creating a sustainable Financial Future for the Charity

Risk Management

Statement of Trustees Responsibilities

Governing Body 35

Photo Collage 38

Auditor's Report and Full Accounts 42

FREDDIE FLINTOFF MBE

VISIT TO BROUGHTON HOUSE

SEPTEMBER 2018

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JACK PILKINGTON

AGED 85

ROYAL ENGINEERS

BROUGHTON HOUSE RESIDENT

Broughton House has been providing care to veterans for over one hundred years and endeavours to do so for many years to come.

We are delighted to report that 2018/2019 saw the commencement of the construction of the Broughton House – Veteran Care Village, which will be the UK’s first Veteran Care Village; replacing our existing building with a state of the art Care Village delivering a trinity of services:

CHAIRMAN AND CHIEF EXECUTIVE’S FOREWORD

Professor Sir Netar MallickChairmanBroughton House

Wing Commander Chris Lindsay RAF (retd) Chief Executive

• 64 bed CQC registered nursing & residential home - Designed to offer the most supportive and dignified environment, the registered care and dementia facility will be divided into smaller ‘households’ so each veteran continues to feel at home.

As the only Care Home in the North West delivering dedicated veteran care; the need to expand and diversify our level of care is paramount to meet the growing and changing needs of veterans both now and in the future.

Broughton House relies heavily on donations to finance the care we provide and to fund the new Veteran Care Village. We remain ever grateful for the tremendous support from a wide range of individuals and organisations, not least The Stoller Charitable Trust, the Chancellor of the Exchequer using LIBOR funds and the Service Charities. This funding is critical and allows us to continue our work in caring for and supporting our veteran community.

We trust the content of this report will give you a good insight into the year, the ongoing work of the Charity and our future plans.

• 30 independent living apartments - For veterans and/or their families. The independent living apartment concept combines the freedom of independent living with the reassurance that a caring community is close by for help, support and friendship.

• Charity and Armed Forces Support Hub - Offering case managed dedicated support to ex-servicemen & women. A transformational change for the Charity, the Hub is already engaged with veterans living in the community and offer support in the areas of health, welfare education and social needs.

"We are extremely proud of our history and are looking forward to the future with enthusiasm, hope and dedication."

Phase One Phase One Phase Two

Funding for Phase One has been secured. The proposal is to build Phase Two subject to funding.

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JOAN JONES

AGED 94

WOMEN'S AUXILIARY AIR FORCE


about usW E C A R E F O R A N D S U P P O R T V E T E R A N S A N D T H E I R F A M I L I E S

Broughton House was originally founded under the name East Lancashire Home for Sailors and Soldiers in 1916 to care for sailors and soldiers who had been injured during the First World War.

The Charity is registered with the Charity Commission. All assets and land were transferred from the former Unincorporated Charity (number 227864) to the new Incorporated Charity (number 1155225) on 1 April 2014.

Today, the Charity cares for ex-Service Men and Women who are in need of care and support. We believe in providing the highest quality of care and support for all our residents.

The following key objectives of the Charity are set out in the Constitution which governs the Charity:

• To provide accommodation, care and support for military veterans who have served in the British Armed Forces, Merchant Navy and their spouse or civil partner.

• If there are vacancies within Broughton House

the Charity Trustees can admit other persons who are in need of care and support.

In an effort to raise revenue, applications for funding are made to benevolent associations, grant making trusts, and funds from voluntary sources are raised by appeals and running events to supplement fee income.

M I SS I O N STAT E M E N T We care for and support veterans and their families.

O U R V I S I O NOur vision is that Broughton House – Veteran Care Village be recognised nationally as an outstanding provider of residential, nursing care and support for veterans and their families.

O U R VA L U E SThe Broughton House Team conducts its duties with PRIDE:

P U B L I C B E N E F I TThe main activities, aims and objectives of the Charity are reviewed annually.

The Trustees, having had regard to guidance on public benefit issued by the Charity Commission, confirm that the charitable purposes fall within the definitions set out in the Charities Act and, therefore, are for public benefit.

Passion

Responsiveness

Innovation

Dedication

Empathy

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governance & management

The Constitution of the Charity provides that the Trustee Body shall consist of not less than 7 and no more than 15 Trustees. Each Trustee shall normally serve a term of three years. Any retiring Trustee shall be available for re-election unless indicating their wish not to be considered for re-election. A Trustee who has served for three consecutive terms may not be reappointed for a fourth consecutive term but may be reappointed after an interval of at least one year.

The Constitution of the Charity governs the appointment of Trustees. The Board of Trustees is authorised to appoint new Trustees to fill vacancies through retirement, resignation or death of an existing Trustee. Every Trustee must be appointed for a term of three years passed at a properly convened meeting of the Trustees. The Board of Trustees usually meet on a bi-monthly basis.

In selecting individuals for appointment as Trustees, the Board of Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the Charitable Incorporated Organisation (CIO). Ideally the Trustees should have a diverse range of skills, backgrounds and experience, including service in the Armed Forces, Merchant Fleet, Medical and Nursing, Finance, Administration, Buildings and Estate Management. Newly appointed Trustees receive induction training relating to the work of the CIO.

The Chief Executive is responsible for the day-to-day management of the Charity, Home and Armed Forces Support Hub and for implementing the policies agreed by the Trustees. Responsibility for care delivery is delegated to to the Registered Manager by the CEO.

Sub Committees appointed by the Trustee Board comprise:

• Veteran Care Village Committee • Finance Committee • Care and Clinical Advisory Committee • Nominations Committee

In January 2019, the Trustees held a Governance Away Day at PwC Offices in central Manchester.

T H E T R U S T E E B O D Y N E W M E M B E R S O F T H E T E A M - T R U S T E E B O A R D

HILARY MEREDITHHilary is founder and Chair of Hilary Meredith Solicitors, a Cheshire law firm representing armed forces service personnel, veterans and their families. She also acts as Visiting Professor of Law and Veterans’ Affairs at the University of Chester.

Throughout her 30-year career, Hilary has successfully campaigned for the rights of our armed forces community. In recent years, she has provided evidence to Parliament on a number of occasions, covering a wide range of legal matters including inoculations in Gulf War 1, Access to Justice for the Armed Forces, Corporate Homicide, Combat Immunity, Iraq Historic Abuse Cases and Historic Prosecutions from Northern Ireland. Recommendations made as a result of the issues she has raised have had a direct life-saving impact on the future safety of our servicemen and women.

Recently named as the most inspirational female solicitor in the UK, Hilary also collected the Lifetime Achievement Award at this year’s Manchester Legal Awards for being “one of the trailblazers of her generation” - her fifteenth industry award.

COLONEL RUSS MILLER OBEColonel Miller took up his current post as Army Commander, North West Region in August 2018. Following service as a soldier in the Army Reserves, Colonel Miller attended the Royal Military Academy Sandhurst in 1990. As a junior officer, he completed regimental duty tours with the Royal Marines, and as an imagery analyst in the UK and Northern Ireland.

He later completed two further tours of Northern Ireland, including company command, and deployed to the Former Yugoslavia for 9 months. As a Major, he was attached to the Defence Intelligence Terrorism Assessment Cell in MOD, before undertaking a 3-year exchange tour in Ottawa, Canada. His subsequent SO2 appointment was as the Intelligence Corps desk officer in the Army Personnel Centre, Glasgow. On promotion to Lieutenant Colonel in 2006, Colonel Miller spent 16 months on Loan Service in Sierra Leone, as Director Defence Intelligence and Security. He then attended Advanced Command and Staff College, before taking Command of a joint intelligence unit committed to operations in both Afghanistan and Iraq. He deployed to Kabul on Op HERRICK during 2011 and was subsequently Chief of Staff, Joint Terrorism Assessment Centre (JTAC) during the 2012 London Olympics.

Colonel Miller is married to Karen, and they live in North Wales with their somewhat troublesome couple of dogs, several farm cats, some geese and two small flocks of sheep. When time permits, he enjoys the odd walk in the hills, field sports, the occasional game of golf, and reasonably regular trips in pursuit of his favourite pastime; wildlife photography in southern Africa.

GAVIN WILLIAMSON CBE MP

VISIT TO BROUGHTON HOUSE

JUNE 2018

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GOVERNANCE & MANAGEMENTE X E C U T I V E T E A M

CHIEF EXECUTIVEWing Commander Chris Lindsay RAF (retd)In May 2018 Chris retired from the Royal Air Force after 28 years service. During his military career he undertook operational tours relating to Bosnia, Iraq and Afghanistan conflicts and also spent time with the Ministry of Defence and the Civil Aviation Authority. His final tour was at Headquarters Air Command at RAF High Wycombe, where he was the Battlespace Management Chief of Staff.

Chris joined the Broughton House Team in June 2018 as the Interim Chief Executive Officer and was appointed Chief Executive Officer on 1 November 2018. As Chief Executive he oversees the day-to-day management of the Charity, Care Home and Armed Forces Support Hub.

Chris is currently heavily involved in driving forward the Veteran Care Village Programme that will enhance the lives of many veterans across Greater Manchester and the North West of England. Chris brings a wealth of knowledge and experience to the Charity and is enjoying the challenges the role offers.

Chris is a ‘local lad’ and resides in Littleborough, Greater Manchester with Judit, his wife, and their three children.

FUNDRAISING AND MARKETING MANAGERRhys EdwardsRhys comes from a family of fundraisers, from his Grandfather at St Kentigern Hospice, father at NSPCC, brother at British Heart Foundation and fiancé at Age UK.

Prior to starting his professional career Rhys successfully gained a B.A (Joint Hons) at the University of Wales and an MSc at Manchester Metropolitan University.

Over the last 7 years Rhys has gained experience across community, corporate, event, legacy, lottery, marketing and trust & foundation giving and was most recently Fundraising Manager at Cheshire based charity Deafness Support Network.

Originally from North Wales, Rhys now lives in Northwich, Cheshire.

T H E T R U S T E E B O D Y

ZOE WATTERS

Zoe a Chartered Accountant, is a PwC Partner where she has worked for the last 14 years. She specialises in financing public sector infrastructure with a particular focus on health and social care.

For Zoe it was the combination of the exciting Veteran Care Village project that attracted her to joining Broughton House as well as the unique brand that Broughton House has across Manchester and Salford. Zoe is also a Magistrate, sitting on the Greater Manchester bench for the last 12 years.

COMMODORE PHIL WATERHOUSE

Commodore Phil Waterhouse is the Naval Regional Commander for Northern England and the Isle of Man; as such he is the First Sea Lord’s Ambassador for the region with the specific task of ensuring that the Naval Service is understood, respected and valued by the community which it serves.

To deliver this output he engages personally at the national and regional strategic level whilst his small team delivers tactical engagement at major events and in various locations around the North; that team also facilitates port visits by RN and NATO platforms and contributes to the regional resilience effort. He has been in post since early 2017 and flies his Broad Pennant from his HQ in Liverpool.

Associate Member


achievements & performanceO B J E C T I V E S

ANDREW ‘OSSY’ OSBOURNEAGED 92PARACHUTE REGIMENT BROUGHTON HOUSE RESIDENT

TO E N S U R E

TO D E L I V E R

TO AC H I E V E

TO AT T R AC T

the Veteran Care Village on time and on budget.

and retain the people required that ensures we deliver our strategic direction more effectively and efficiently.

and maintain financial sustainability.

that we have a range of effective systems and processes in place to achieve the highest standards of governance.

Enduring strategic objective:

Our current strategic objectives are as follows:

outstanding, safe and harm free care and support.TO P R OV I D E


Broughton House continues to provide an excellent nursing, residential and respite facility for ex-Service Men and Women from across Greater Manchester and further afield and welcomes residents from all backgrounds. Before admitting a prospective resident we ensure that our home will be able to provide the appropriate care and accommodation. We will then work with the resident to develop a care plan which will enable them to achieve their full potential.

Residents, relatives, staff and volunteers all play a part in making Broughton House a happy and welcoming place to live, work and visit. Good communication, effective operating procedures and a solid understanding of current legislation are critical components in the Health and Social Care environment. The continuing focus for Broughton House staff is the need to ensure effective and targeted care that promotes dignity, respect and independence for all residents.

The Care Home was last inspected by the Care Quality Commission (CQC) in May 2017 and received an overall rating of ‘Good’ in all five key areas. Our aim for the future is to achieve ‘Outstanding’. Our Care and Support Team, led by the Registered Manager, Tami Pearson, continue to look for ways to constantly improve the delivery of our care services and take them forward. We are grateful to our dedicated care and support staff for the excellent

achievements & per formanceC H A R I TA B L E AC T I V I T I E S - T H E B R O U G H TO N H O U S E C A R E H O M E

service they continue to deliver to the residents in our care. The Care and Clinical Advisory Committee (CCAC) provide guidance and advice to the Broughton House Care Team and have strong links with the Salford Care Home Practice, Salford Care Commissioning Group and other external agencies.

During the year Broughton House has been actively involved with the Haelo project. Haelo is an innovative NHS improvement science centre based in Salford, working with systems, organisations and teams who strive to be the best. The goal is to tackle the biggest challenges for health and social care. We also regularly attend the Salford Safeguarding forums and have recently participated in the Salford Royal NHS Foundation Trust cost information sharing exercise in relation to care home fees.

Our Kitchen Team is led by Head Chef, Elise Snell, and our catering is well renowned and enjoyed by residents, relatives, staff and volunteers alike. We continue to hold the highest food hygiene rating of ‘5’ from Salford City Council Environmental Inspectorate.

In order to make way for the new Veteran Care Village a proportion of the existing build was demolished in September 2018. The care home continues to operate at a reduced occupancy level, with our current registration with CQC at a maximum of 35 service users.

C A R EB R E A K D O W N

60%R E S I D E N T I A L

40%N U R S I N G

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JACK PILKINGTON AND PAM WHITE RGN

Our residents are very much looking forward to becoming the first occupants of the UK’s first Veteran Care Village. Resident Jack Pilkington, an ex Royal Engineer, is currently representing the residents on the VCV committee. Over the past year, the home has provided care to 38 permanent and 24 respite placements. Of the permanent placements, 60% of residents have received residential care and 40% received nursing care. Health and wellbeing activities for residents are essential and we employ a dedicated Welfare Officer, April Jolly, who arranges a packed programme of activities for our residents enjoyment, health and wellbeing. Activities include physiotherapy, chiropody, movement to music, hairdressing, daily news and reminiscence workshops and of course a variety of games.

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We maintain strong links with serving members of the Armed Forces and local veterans groups, which our residents highly value and appreciate. In October 2018, Broughton House was pleased to host a visit from the Rt Hon. Gavin Williamson MP, Secretary of State for Defence, which was enjoyed by all.

Over the year our residents enjoyed many events, especially the Not Forgotten Association Garden Party at Buckingham Palace. In-house entertainment included a number of concerts provided by Music for Hospitals. The activities programme for Broughton House remained varied and full, inclusive of a number of in-house events and concerts. Key events over the year which our Residents enjoyed include:

• WW1 100th Anniversary Commemoration Events • RAF 100 Celebrations • BBC Philharmonic Visit and Concert • Visit from Gavin Williamson MP, Secretary of State for Defence • N Brown plc, Freddie Flintoff visit to present new Broughton House blazers • Broughton House Fundraising Dinner arranged by Sue Greenlees, volunteer • Visit to Manchester City FC • Visit from Manchester City Youth Squad • Visit to Salford City Football Club • Visit from Curtis Langdon, Sale Sharks • Visit to Sale Sharks

The N Brown Group, Sage, Urban Vision, Talk-Talk and DDW have all given their time to volunteer to support with events and activities over the year. We are indebted to our volunteers for the help and support they provide within the care home environment.

Our Residents enjoyed a special day in September when Freddie Flintoff visited the house to present the residents with the official Broughton House blazers. The N Brown Group kindly designed, produced and funded the official Broughton House uniform which our Residents now wear with pride at official outings. We are extremely grateful to the N Brown Group for their kindness and support.

Residents and staff were honoured to join Salford City Council for their Annual Remembrance Sunday Service and also to attend the Remembrance Service at Manchester Airport.

achievements & per formanceC H A R I TA B L E AC T I V I T I E S - T H E B R O U G H TO N H O U S E C A R E H O M E

ANDREW 'OSSY' OSBOURNE

SALFORD CITY FC VIP

REMEMBRANCE GUEST

NOVEMBER 2018

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The Broughton House Armed Forces Support Hub, (the Hub), was established in January 2018. It is a Greater Manchester non-residential service aimed at supporting veterans and their families in the community.

The Hub is working in partnership with Forces Support. We are delighted to report that funding for the Broughton House Armed Forces Support Hub has been granted by Forces Support for the next three years.

Overseen by the Veteran Engagement Support Director, the day to day staffing for the Hub currently consists of the Welfare Lead and a Counsellor; both working part-time.

The Hub provides support and assistance for veterans and their families who are transitioning from service to civilian life; ensuring that one point of contact will help them to meet their physical and mental wellbeing, social, employment and education needs. The Hub currently has 33 clients and demand for the Hub services continues to grow.

Working alongside leading strategic organisations, the Hub offers a unique, bespoke and case managed person centred service for veterans and their families.

achievements & per formanceC H A R I TA B L E AC T I V I T I E S - T H E B R O U G H TO N H O U S E S U P P O R T H U B

Notable client case studies over this period can be found on the previous page.

Broughton House Hub Objectives:

• Empower veterans to take control of their own life.• Provide a pro-active approach and early intervention.• Create greater access to services by providing NAAFI Break Drop-In’s within the communities.• Integrate veterans in to the community.• Promote independent living.• Promote health and wellbeing.• Eradicate loneliness and isolation.• Improve access to services and opportunities.• Raise awareness and educate.• Help veterans to gain sustained employment.

The Broughton House Armed Forces Support Hub focuses on early intervention and support to help veterans and their families, dealing with mental & physical health and social welfare challenges - so that they can transition well into leading fulfilling lives in the civilian world.

The Hub, currently housed in a small area of Broughton House, will have a prominent, bespoke design, in the new Veteran Care Village.

A client referred to the Hub from Pennine Care NHS Foundation Trust ‘Military Veterans Service’ the wife of one of their clients. She was struggling with low level anxiety and depression due to her husband’s PTSD and felt lonely and isolated with no-one to confide in. Her need was severe. She had experienced suicidal thoughts and had been to her GP for help.

Unfortunately there was a 16 month waiting list to access the appropriate support services in her area. The Hub were able to offer her immediate psychotherapy counselling. Having successfully completed a course of treatment her outlook improved immeasurably. She is now an active member of the Help-4-Heroes Band of Brothers/Band of Sisters scheme and managed to get herself back in to work.

A client referred to the Hub from Pennine Care NHS Foundation Trust ‘Military Veterans Service’. He was suffering with stress and anxiety about completing his Personal Independence Payment medical assessment and ESA50 form.

This in turn was impacting on his clinical trauma therapy. The Hub staff attended the medical and PIP assessments with him and advocated on his behalf. He was successful on both occasions, reducing his anxiety and stress so he could successfully complete his trauma therapy.

Client StoriesClient Stories

www.forcessupport.org.uk


Phase 1A – Construction of 2 x 16-bedded care home households and care home facilities including kitchen, laundry, stores, gym, activity rooms, treatment rooms, gardens and grounds. Museum, café and Charity offices.

Phase 1B – Construction of 2 x 16-bedded care home households, 6 x independent living apartments, Armed Forces Support Hub offices.

Phase 2 – Construction of 24 independent living apartments.

In 2015, the Trustee Board with the invaluable help and guidance of The Veteran Care Village Working Group, ably led by Mr George Almond, embarked on a project to create the UK’s first Veteran Care Village; replacing our existing building with a state of the art care village delivering a trinity of services.

At the start of the project it was The Stoller Charitable Trust who led the way with a significant pledge which enabled the Charity to start to look at the future care and support needs of the veteran community. Sir Norman Stoller, a stalwart supporter of the Charity for many years, clearly understood, encouraged and embraced the development of the Veteran Care Village concept on the current site.

The Veteran Care Village will comprise of:

• 64 bed CQC registered nursing & residential home - Designed to offer the most supportive and dignified environment, the registered care and dementia facility will be divided into smaller ‘households’ so each veteran continues to

feel at home.

• 30 independent living apartments - For veterans and/or their families. The independent living apartment concept combines the freedom of independent living with the reassurance that a caring community is close by for help, support and friendship.

• Charity and Armed Forces Support Hub - Offering case managed dedicated support to

ex-servicemen & women. A transformational change for the Charity, the Hub is already engaged with veterans living in the community and offer support in the areas of health, welfare education and social needs.

achievements & per formanceV E T E R A N C A R E V I L L A G E P R O J E C T

In 2016, the Chancellor of the Exchequer granted £3 million from LIBOR funds to the capital project. In addition, a total of £8,456,517 has been donated or pledged towards the £14.1 million capital project.

This would not have been possible without the support of the Service Charities, grant-making trusts and individual supporters; we are indebted to them for their support and encouragement for our work; in wholeheartedly backing the development the UK’s first Veteran Care Village, which will provide both care and support for the veteran community.

In addition to this funding the Charity has secured a loan of £3 million from the Greater Manchester Combined Authorities, bringing the total capital funding to date to £11,456,517. This tremendous support has enabled the Charity to move forward with Phase 1 of the build. Fundraising towards the capital project continues apace.

Eric Wright Construction arrived on site in August 2018 and commenced the construction programme of works: Phase 1A - Phase 1B - Phase 2

The existing nursing care home continues to operate at reduced capacity. The current residents are enthralled by the build and very much looking forward to the move across to Phase 1A.

The photograph clearly depicts the progress made to date and the ongoing site development works.

The Trustees have worked steadily to ensure the new Veteran Care Village will transform and enhance the existing site in order to create the UK’s first Veteran Care Village which will meet the needs of the veteran community from the moment they leave the armed forces until their final days.

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THE BROUGHTON HOUSE VETERAN CARE VILLAGEA BESPOKE FACILITY WHICH WILL SUPPORT VETERANS AND THEIR FAMILIES IN LIFE AFTER SERVICE

ATC CADETS AT 1940'S WEEKEND AT EAST LANCASHIRE RAILWAYMAY 2018

The charity is registered with the Fundraising Regulator and continues to work within the Fundraising Code of Practice.

Fundraising this year has been a challenge as we continue to raise funds not only towards our core funding but also towards the capital build project. Broughton House relies upon public support for everything that we do and our work in caring and supporting veterans would not be possible without such support.

We are pleased to report that Rhys Edwards was appointed as the charity’s Fundraising and Marketing Manager in June 2018 and has immersed himself into the fundraising and marketing; making acquaintance with regular and new supporters, actively seeking funding for the charity and reinvigorating the charity’s social media presence of Broughton House.

F U N D R A I S I N G AC T I V I T I E S

achievements & per formance

The Charity depends on fundraising income to supplement the full cost of care provided to residents. Support from the Service Charities remains vital to the success of Broughton House, with ABF ‘The Soldiers Charity’, The Royal Air Force Benevolent Fund and Royal Navy Royal Marine Charity all making significant grants to our annual operating costs. Furthermore, we remain immensely grateful to Queen Mary's Roehampton Trust, the Zochonis Charitable Trust and Booth Charities for their very generous grants towards our work. Without this support and other kind donations, the Charity would struggle to continue.

As mentioned previously support to the Capital Fund was led by the Stoller Trust; we remain indebted to the Trust for their continued affiliation and support for our work. In the financial year 2018/2019 grants towards the capital project were also received from:

The Band Trust, The Royal Air Force Benevolent Fund, Royal Navy Royal Marine Charity, Laings Charitable Trust, Hospital Saturday and The Peter Harrison Trust.

Fundraising events during the year included: - the East Lancashire Railway Collection by the Air Training Corps, Help Broughton House Gala Ball, organised by Sue Greenlees who has been a stalwart helper and supporter of the charity and Walk like a Veteran organised by the Bury Fusiliers.

We have also benefitted from, and enjoyed, a number of ‘corporate away days’ from a number of organisations to Broughton House that have resulted in gifts in kind, such as gardening assistance and support on days out for the Broughton House residents. It is not simply about the amount of money that is donated to the Charity, the generosity of spirit,

time and grace that is given by so many people and organisations is truly valued by all who are connected with Broughton House. Fundraising for both the General and Capital Funds is ongoing. This income is critical and enables Broughton House to continue to meet the changing needs of the ex-Service community and to complete in full the new Care Home Village.

Whilst we have not been able to mention all individuals and organisations in this Annual Report, the Trustees are most grateful to our loyal supporters, volunteers and friends for their continued dedication and support that we receive.

We look forward to moving into the new modern facility and expanding our services to care and support veterans and their families in the UK’s first Veteran Care Village and take the charity forward into a new era.

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O U R S U P P O R T E R S

achievements & per formance

D I C K A N S O N S C H A R I T YWA L K L I K E A

V E T E R A N

THANK YOU

T H I S P A G E O N L Y H I G H L I G H T S A S M A L L S E L E C T I O N O F O U R

S U P P O R T E R S . W E W O U L D L I K E T O T A K E T H I S O P P O R T U N I T Y T O T H A N K

Y O U A L L . W I T H O U T Y O U R H E L P O U R W O R K W O U L D N O T

B E P O S S I B L E .

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RESIDENT GEORGE SIMMS AND BROUGHTON HOUSE AMBASSADOR CURTIS LANGDON, SALE SHARKS

T H E B A N D T R U S T

S T O C K P O R T M I L I TA R I A C O L L E C T O R S S O C I E T Y


The Finance Committee, led by Brigadier Tom O’Brien, oversees the management of the Charity’s finances.

I N C O M EWe continue to face significant challenges which include insufficient government funding for the provision of care. Income for the year 2018/2019 totalled £1,558,828 broken down as follows: General Fund £1,207,929, Restricted Fund £273,989 and Designated Fund £76,910. The cost of providing care amounted to £1,540,453. There is a widening divergence between the actual cost of care and fee contributions received by the Home. Income from contributions, accounted for 76% of unrestricted fund income; fee income has reduced over the past two years due to lower occupancy in preparation for the new build. The average occupancy in the year 2018/2019 was 31.

The current environment for fundraising is particularly challenging. Legacy income is unpredictable and in the last year we received £10,972. The Charity is committed to employing the highest standards in its approach to fundraising and is registered with the Fundraising Regulator.

R E ST R I C T E D F U N D The Restricted Fund balance includes £957,382 towards the new build project and £38,927 towards to Support Hub. We have received pledges totalling £4,775,000 towards the Capital Project. Fundraising is ongoing towards the Capital Project.

D E S I G N AT E D F U N DThe Designated Fund totals £4,863,161 and includes the freehold property £1,356,210, assets currently under construction, the Veteran Care Village £2,863,416, investment funds £587,160 and heritage assets held in the Charity’s museum £56,375.

f inancial review

E X P E N D I T U R EExpenditure on the Veteran Care Village is closely monitored and overseen by the Veteran Care Village Committee with assistance from the Charity’s Finance Committee.

Legal costs were much higher than usual in the year due to the Capital Project and the arrangement of the GMCA loan.

All other areas of financial expenditure are closely scrutinised and balanced against operational safety in the delivery of care.

TRUSTEES’ CONFIRMATIONThe Trustees confirm that the accounts have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) effective January 2015.

R E S E R V E S P O L I C YIt is the policy of the Trustees to maintain a Reserve Fund at a level that equates to at least three months of unrestricted expenditure. This provides sufficient funds to cover costs in the unlikely event of normal sources of income drying up.

At year-end the Reserve Fund totalled £587,160 (2017/2018 year-end total £551,285). Monies from the Reserve Fund have been utilised to cover the capital project start-up costs. The Fund has therefore reduced significantly over the past few years.

PAUL HARBRON

AGED 74

ROYAL ENGINEERS



f inancial review

I N V E ST M E N T P OW E R S A N D P O L I C YTo increase the efficiency of the investment process, the Charity’s Investment Broker has been given discretionary authority to invest on the Charity’s behalf. Changes in the investment portfolio continue to be monitored by the Trustee Board on a regular basis and the Investment Fund Manager is invited to brief the Board every six months.

C R E AT I N G A S U STA I N A B L E F I N A N C I A L F U T U R E F O R T H E C H A R I T YBroughton House has fixed assets with property, assets under construction and plant, which are fundamental to the business, valued at £4,273,035. Investments which are held in the Charity’s Reserve (Designated) Fund are valued at £587,160.

It is the policy of the Trustees to maintain a Reserve (Designated) Fund at a level that equates to at least three months of unrestricted expenditure and to place all windfall income, such as legacies, directly into the Charity’s Reserve (Designated) Fund.

Monies placed into the Reserve Fund are held in an investment portfolio with percentage yield / return based on investment strategy and financial markets. This fund is used to meet any General Fund deficit and assists with emergency funding in the unlikely event of normal sources of income drying up and ensures business continuity in the event of a major or unexpected event at the Home.

The Charity currently depends on voluntary income to supplement fee income and meet the full cost of the care provided to its Residents. A significant proportion of this income is received from the Service Charities, Trusts, Legacies and individuals who have direct experience of the Second World War and subsequent conflicts in which Forces served. The Charity must keep in mind that the level of legacy and voluntary income may fall significantly in future years as the Armed Forces reduce in number and consequently those in contact with them falls.

When setting care fees, the Charity seeks to achieve a balance between affordability and a level that is consistent with providing first class care and accommodation for Residents, in order to ensure the long-term financial viability of the Charity. This means that we welcome Residents whose care is funded from a variety of sources. During the year Broughton House provided care for Residents funded by twelve local authorities. The Charity seeks not to exclude any potential beneficiary on the grounds of financial hardship.

A MEDAL DISPLAY FROM THE

BROUGHTON HOUSE MUSEUM


K E Y M A N AG E M E N T P E R S O N N E L R E M U N E R AT I O NKey management personnel of the Charity are considered to be the Board of Trustees, together with the Chief Executive and Registered Manager who are in charge of directing and controlling the Charity and the running and operating of the Charity on a day to day basis.

All Trustees give of their time freely and no trustee remuneration was paid in the year.

The pay of the Charity’s Chief Executive and Registered Manager is reviewed annually and normally increased in accordance with average earnings. The remuneration is also bench-marked with grant-making charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

R I S K M A N AG E M E N TMajor risks to the Charity as identified by the Trustees and listed in the Risk Register have been reviewed and appropriate action has been taken and systems have been put in place to mitigate the risks. Records exist to show that statutory and local procedures are being implemented. Statutory requirements and procedures are constantly under review.

The principal risks facing the Charity are set out as follows: - Financial, Health and Safety, Safeguarding, Training, Human Resources, Quality Assurance and Compliance and Charity Governance.

Currently the long term financial sustainability of the Charity is compromised: Reduced income from fees and an increase in running costs has had an impact on our reserves as we deployed funds from our investments in order to fund our operations. In addition to this, the Reserve Fund has been utilised for the project start-up costs. Mitigation include actions to improve our profile and fundraising performance over the next few years and plans to replace the existing care home facility with the Veteran Care Village model as outlined in our objectives.

f inancial review

77W W W . B R O U G H T O N H O U S E . C O M

WOMENS AUXILIARY AIR FORCE

VETERAN JOAN JONES, 94, MEETS PUPILS

FROM ST PETERS PRIMARY SCHOOL

DECEMBER 2018


APPROVAL

This Report was approved by the Board of Trustees on the 20th September 2019.

Signed on behalf of the Board of Trustees.Professor Sir Netar Mallick DL FRCP FRCPIChairman

STAT E M E N T O F T R U ST E E S R E S P O N S I B I L I T I E SThe financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with 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 2015) – (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.

The Trustees prepare financial statements for each financial year, which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements the Trustees are required to:

Select suitable accounting policies and apply them consistently.

Make judgements and estimates that are reasonable and prudent.

State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements.

Prepare the financial statements on an ongoing basis unless it is inappropriate to presume that the Charity will continue in operation.

The Trustees are responsible for keeping accounting records, which disclose, with reasonable accuracy, at any time the financial position of the Charity, and enable them to ensure that the financial statements comply with applicable regulations. They are also responsible for, safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FINANCIAL REVIEW

PATRONHRH The Duke of York, KGThe Duke of York has been Patron of the charity since 1998.

As well as his work with the armed forces, His Royal Highness has a passion for Entrepreneurship, founding Pitch@Palace in 2014 which guides, helps and connects entrepreneurs with potential supporters.

PRESIDENTThe Lord-Lieutenant of Greater Manchester Mr Warren J Smith KStJ JP DLitt LLDThe Lord-Lieutenant is a retired businessman and was appointed the Lord-Lieutenant of Greater Manchester in 2007. His passion for the armed forces led him to become President of Broughton House in 2008.

The Lord-Lieutenant is an active supporter of the charity and regularly visits as well as supporting the team at events across the region.

GOVERNING BODY


TRUSTEES:Professor Sir Netar Mallick DL MB FRCP - Chairman

Mr G Almond CBE OStJ DL Mr K Bishop

Mrs E Conn OBE JP DLLieutenant Colonel SM Dixon MBE TD DLMr W Enevoldson (appointed June 2019)

Air Vice Marshal J Lamonte DL (resigned October 2018) Colonel P Loynes LLB RM

Mrs H Meredith (appointed June 2018)Colonel R Miller OBE (appointed August 2018)

Brigadier TN O’Brien CBE TD ADC DL Lieutenant Colonel LJ Pitt OBE TD DL (resigned April 2018)

Mrs R Rennison (resigned April 2019)Mrs Z Watters (appointed August 2018)

ASSOCIATE MEMBER:Commodore P Waterhouse (appointed June 2018)

CHIEF EXECUTIVE: Wing Commander C Lindsay RAF (retd)

VICE-PRESIDENT:The Rt Worshipful the Ceremonial Mayor of the

City of Salford

LIFE VICE-PRESIDENT:Surgeon Commander JRN Curt OBE RD* DL FRCS RNR

REGISTERED MANAGER:Mrs T Pearson RGN

AUDITORS:Lloyd Piggott Ltd Chartered Accountants St George’s House 56 Peter Street Manchester

BANKERS:National Westminster Bank plc 463 Bury New Road Prestwich Manchester

INVESTMENT MANAGERS:Investec 2nd Floor 3 Hardman Street Spinningfields Manchester

GOVERNING BODY

3 3W W W . B R O U G H T O N H O U S E . C O M


TO GETHER ,

WE CARE FOR THOSE

WHO SERVED US.

KEN ASHWORTH

AGED 95

ROYAL ARTILLERY



AUDITOR'S REPORT & FULL ACCOUNTS

Page 3

Report of the Independent Auditors to the Trustees of Broughton House - Home for Ex-Service Men and Women Opinion We have audited the financial statements of Broughton House - Home for Ex-Service Men and Women (the 'charity') for the year ended 31 March 2019 which comprise the Statement of Financial Activities, the 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 charity's affairs as at 31 March 2019 and of its incoming

resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. 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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the trustees' use of the going concern basis of accounting in the preparation of the financial statements

is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that

may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 4

Report of the Independent Auditors to the Trustees of Broughton House - Home for Ex-Service Men and Women Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the

financial statements ; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 charity or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audit of the financial statements 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. 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 charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. 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. Lloyd Piggott Limited Chartered Accountants and Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 St George's House 56 Peter Street Manchester M2 3NQ Date: ............................................. 25th September 2019


STAT E M E N T O F F I N A N C I A L AC T I V I T I E S F O R T H E P E R I O D E N D E D 31 ST M A R C H 2019

The notes form part of these financial statements

Page 5

Broughton House - Home for Ex-Service Men and Women Statement of Financial Activities For The Year Ended 31 March 2019

2019 2018

Unrestricted fund

Designated funds

Restricted funds

Total funds Total funds

Notes

£ £ £ £ £

INCOME FROM Donations and legacies Support hub donations

3 3

281,698 -

56,375 -

241,322 56,667

555,395 56,667

3,907,973 23,333

Charitable activities 6 Care home 922,426 - - 922,426 918,363 Bar income 4 3,805 - - 3,805 8,982 Investment income 5 - 20,535 - 20,535 35,720

Total 1,207,929 76,910 273,989 1,558,828 4,894,371 EXPENDITURE ON Raising funds 7 55,036 4,073 - 59,109 146,304 Charitable activities 8 Care home 1,540,453 572,968 137,077 2,250,498 1,602,307 Support hub - - 30,573 30,573 11,410 Bar expenditure 2,958 - - 2,958 9,257

Total 1,598,447 577,041 167,650 2,343,138 1,769,278 Net gains/(losses) on investments

-

19,413

-

19,413

(1,606)

NET INCOME/(EXPENDITURE)

(390,518)

(480,718)

106,339

(764,897)

3,123,487 Transfers between funds 20 523,422 2,061,886 (2,585,308) - -

Net movement in funds 132,904 1,581,168 (2,478,969) (764,897) 3,123,487 RECONCILIATION OF FUNDS

Total funds brought forward

130,823

3,281,993

3,475,278

6,888,094

3,764,607

TOTAL FUNDS CARRIED FORWARD

263,727

4,863,161

996,309

6,123,197

6,888,094


B A L A N C E S H E E T AT 31 ST M A R C H 2019


Page 6 continued...

Broughton House - Home for Ex-Service Men and Women Balance Sheet At 31 March 2019

2019 2018

Unrestricted fund

Designated funds

Restricted funds

Total funds Total funds

Notes

£ £ £ £ £

FIXED ASSETS Tangible assets 14 53,409 4,219,626 - 4,273,035 1,992,722 Heritage assets 15 - 56,375 - 56,375 - Investments 16 - 536,128 - 536,128 519,764

53,409 4,812,129 - 4,865,538 2,512,486

CURRENT ASSETS Debtors 17 31,882 - - 31,882 820,124 Cash in hand 277,771 51,032 1,327,240 1,656,043 3,675,588

309,653 51,032 1,327,240 1,687,925 4,495,712

CREDITORS Amounts falling due within one year

18

(99,335)

-

(330,931)

(430,266)

(120,104)

NET CURRENT ASSETS 210,318 51,032 996,309 1,257,659 4,375,608

TOTAL ASSETS LESS CURRENT LIABILITIES

263,727

4,863,161

996,309

6,123,197

6,888,094

NET ASSETS 263,727 4,863,161 996,309 6,123,197 6,888,094

FUNDS 20 Unrestricted funds 5,126,888 3,412,816 Restricted funds 996,309 3,475,278

TOTAL FUNDS 6,123,197 6,888,094


Page 7

Broughton House - Home for Ex-Service Men and Women Balance Sheet - continued At 31 March 2019 The financial statements were approved by the Board of Trustees on ............................................. and were signed on its behalf by: ............................................. Professor Sir Netar Mallick -Trustee

20th September 2019


C A S H F LOW STAT E M E N T F O R T H E Y E A R E N D E D 31 ST M A R C H 2019

Page 9

Broughton House - Home for Ex-Service Men and Women Notes to the Cash Flow Statement For The Year Ended 31 March 2019 1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM

OPERATING ACTIVITIES 2019 2018 £ £

Net income/(expenditure) for the reporting period (as per the statement of financial activities)

(764,897)

3,123,487

Adjustments for: Depreciation charges 12,194 14,176 (Gain)/losses on investments (19,413) 1,606 Dividends received (20,535) (35,720) Transfers to tangible fixed assets (782,350) - Impairment of tangible fixed assets 572,968 - Decrease/(increase) in debtors 788,242 (467,192) Increase/(decrease) in creditors 310,162 (91,201)

Net cash provided by (used in) operating activities 96,371 2,545,156



Page 8

Broughton House - Home for Ex-Service Men and Women Cash Flow Statement For The Year Ended 31 March 2019

2019 2018 Notes £ £

Cash flows from operating activities: Cash generated from operations 1 96,371 2,545,156

Net cash provided by (used in) operating activities

96,371

2,545,156

Cash flows from investing activities: Construction of tangible fixed assets (2,081,067) (5,479) Purchase of tangible fixed assets (58,433) - Purchase of fixed asset investments (77,234) (40,483) Sale of fixed asset investments 80,283 821,251 Dividends received 20,535 35,720

Net cash provided by (used in) investing activities

(2,115,916)

811,009

Change in cash and cash equivalents in the reporting period

(2,019,545)

3,356,165

Cash and cash equivalents at the beginning of the reporting period

3,675,588

319,423

Cash and cash equivalents at the end of the reporting period

1,656,043

3,675,588

N OT E S TO T H E F I N A N C I A L STAT E M E N TS F O R T H E Y E A R E N D E D 31 M A R C H 2019

Page 10

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements For The Year Ended 31 March 2019 1. GOING CONCERN

Salford City Council approved Broughton House plans for the Veteran Care Village, to be built on the existing site, in September 2017. We have secured pledges totalling £8,456,517 towards the capital project, and entered into a £3million loan agreement with Greater Manchester Combined Authority. A design and build contract has been signed with Eric Wright Construction and construction on site of Phase One of the development commenced in August 2018. Restricted capital fund monies are being utilised to fund the construction costs. Grant monies, which included pre-construction costs, are being recouped as required into the general fund, thus implying that Broughton House remains a going concern for the 12 months following the date of approval of these financial statements. In the event that funding for the full capital project cannot be secured then expenditure on the new build will not continue beyond Phase One. Should this occur, the Charity has sufficient funding based on current rates of expenditure to continue for at least 12 months following the date of approval of these financial statements.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. The financial statements have been prepared under the historical cost convention unless otherwise stated in the relevant accounting policy note(s) with the exception of investments which are included at market value. Fundamental accounting concept The accounts have been drawn up on a going concern basis. In common with many charities, the adoption of the going concern basis is dependent on the charity receiving adequate fundraising from voluntary income such as donations, legacies and grants. While the trustees recognise the uncertainties inherent in predicting the timing and level of future funding from income that is not yet assured, they believe that adequate funding will be secured from donations, legacies and grants. We continue to receive the full support of the bank. The accounts do not include any adjustments that would result if the going concern basis was not appropriate.

5 0 51A N N U A L R E P O R T & A C C O U N T S M A R C H 2 0 19 W W W . B R O U G H T O N H O U S E . C O M5 0 51 Page 11

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 2. ACCOUNTING POLICIES - continued

Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Donations in kind, other than items donated for sale, are recognised at their fair value to the charity when they are received. No amounts are included for services donated by volunteers. Incoming resources compromise: Legacies Bequest legacies are recognised when the charity becomes entitled to it by

way of probate being granted and sufficient information is received to enable an accurate valuation of the Charity' entitlement.

General donations Donations are recognised when the monies are received. Service charities Donations received from service charities are recognised when either the

money is received, if no prior notice of donation, or when the charity is notified of the donation and the amount can be quantified.

Fund raising Fund raising income is recognised as received. Investment income

Investment income is recognised as it is earned and the policy results in accrued income.

Fee contributions Fee income is recognised as the service is provided.

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. Cost of Charitable Activities These include all direct salaries and other costs in delivering the Charity's charitable activity as a care home. Governance Costs These are costs directly associated with the Governance of the charity, including legal and regulatory compliance and strategic planning.

Raising funds Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.



Page 12


Tangible fixed assets All significant assets purchased or otherwise acquired for ongoing use in the business are capitalised when they are put into use. Tangible fixed assets are stated at cost less depreciation. No depreciation has been provided on freehold land and buildings in view of expenditure on property maintenance making the lives and residual values such, that any depreciation provided would be immaterial. An annual impairment review has been undertaken and market value is considered far in excess of carrying value. Depreciation is provided at rates to write off the costs of fixed assets, less the estimated residual value, over their expected useful lives on the following basis: Motor vehicles 25% reducing balance Plant & equipment 10% reducing balance Fixtures & fittings 20% reducing balance Computer equipment 50% on cost Assets under construction relate to the construction of the new care village which was in progress at the year end. Upon completion of work the cost will be transferred to freehold property and and depreciated over its useful economic life.

5 2 5 3A N N U A L R E P O R T & A C C O U N T S M A R C H 2 0 19 W W W . B R O U G H T O N H O U S E . C O M5 2 5 3 Page 13


Heritage assets The Charity owes a large collection of military memorabilia including medals which it exhibits in a small museum within the care home for the residents and visitors to view. The collection includes artefacts from WW1, WW2 and various other conflicts. Consisting of: - - over 400 medals - 9 uniforms - 39 WW1 memorial plaques - framed memorabilia and pictures - items associated with the founding of Broughton House including a silver matchbox presented by Admiral Viscount Sir John Jellicoe in 1917 and a wheelchair presented to the charity in 1918 by the American Red Cross. - Bruce Bairnsfather memorabilia including large cartoon drawing As the items in this collection are held for their contribution to the heritage and history of service men and women they qualify as heritage assets in line with section 34 of FRS102 and are held on the balance sheet at what is understood to be their market value by the charity. The Trustees have set a policy of recognising individual heritage assets with a value of greater than £1,000 in the financial statements. From time to time the Charity is donated memorabilia to add to the collection. Any donated items received with a value in excess of the accounting policy are recognised as additions in the year that they are received. The Trustees have no intention of disposing of items in the collection unless there were some highly exceptional circumstances. The collection is valued for insurance purposes and any deemed change in market value is recognised through the statement of financial activities.

Taxation The charity is exempt from tax on its charitable activities.

Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The trustees have chosen to put aside unrestricted legacy income into a designated fund. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.



Page 14


Fixed asset investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using closing quoted market price. The statement of financial activities includes the net gain and losses arising on revaluation and disposals throughout the year. The charity does not acquire any derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

3. DONATIONS AND LEGACIES

2019 2018 £ £

Service charities 128,000 128,000 Donations 412,677 3,676,691 Legacies 10,972 33,540 Fundraising income 3,746 69,742 Support hub donations 56,667 23,333

612,062 3,931,306

Grants received, included in the above, are as follows: 2019 2018 £ £

Other grants 56,667 23,333

4. BAR INCOME

2019 2018 £ £

Bar income 3,805 8,982


Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 5. INVESTMENT INCOME

2019 2018 £ £

Dividends received 20,535 35,720

6. INCOME FROM CHARITABLE ACTIVITIES

2019 2018 Activity £ £ Fees Care home 922,426 918,363

7. RAISING FUNDS

Raising donations and legacies

2019 2018 £ £

Staff costs 50,438 97,083 Appeals 4,597 44,080

55,035 141,163

Investment management costs

2019 2018 £ £

Investment advice 4,074 5,141

Aggregate amounts 59,109 146,304

8. CHARITABLE ACTIVITIES COSTS

Direct costs Support costs

Totals

(See note 9) (See note 10) £ £ £

Care home 1,937,166 313,332 2,250,498 Support hub 30,573 - 30,573

1,967,739 313,332 2,281,071



Page 16

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 9. DIRECT COSTS OF CHARITABLE ACTIVITIES

2019 2018 £ £

Staff costs 1,052,224 1,096,150 Residential costs 140,508 141,671 Miscellaneous costs 34,713 51,984 Food costs 50,191 53,208 Medical costs 21,375 26,093 Maintenance costs 41,624 35,934 Support hub costs 2,108 4,264 Cleaning costs 32,729 34,519 Training costs 7,105 5,720 Depreciation 12,194 14,175 Impairment losses 572,968 -

1,967,739 1,463,718

10. SUPPORT COSTS

Support

costs

Governance costs

Totals

£ £ £ Care home 300,018 13,314 313,332

Support costs, included in the above, are as follows:

Support costs 2019 2018

Care home

Total activities

£ £ Wages 120,660 109,033 IT and computer costs 6,163 7,956 Legal fees 173,195 14,320

300,018 131,309

The legal fees included in support costs have increased in the year due to the capital project and arrangement of a loan which has not yet been drawn down.


Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 10. SUPPORT COSTS - continued

Governance costs 2019 2018

Care home

Total activities

£ £ Auditors' remuneration 12,998 18,360 Trustees expenses 316 330

13,314 18,690

11. AUDITORS' REMUNERATION

The auditor's remuneration constituted an audit fee of £12,200 (2018:£9,360) and additional non-audit services work of £798 (2018:£9,000).

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2019 nor for the year ended 31 March 2018.

Trustees' expenses

Trustees expenses paid during the year amounted to £316 (31 March 2018 : £330).



Page 18

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 13. STAFF COSTS

2019 2018 Staff costs £ £ Wages & salaries 1,116,771 1,200,440 Social security costs 85,715 85,147 Pension costs 20,836 16,678 1,223,322 1,302,265 The average number of employees, analysed by function was: 2019 2018 Nursing & residential 45 46 Fundraising & publicity 2 2 Management & administration of the charity 5 6 52 54 Number of employees with employee benefits excluding employer pension contributions: £70,000 to £80,000 = 1 The key management personnel of the charity are the Chief Executive and the Registered Manager. The total employee benefits of the key management personnel were £148,847 (2018: £149,019).


Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 14. TANGIBLE FIXED ASSETS

Freehold property

Assets under construction

Plant and machinery

£ £ £ COST At 1 April 2018 1,999,007 - 81,711 Additions - 2,081,067 630 Reclassification - 782,350 - At 31 March 2019 1,999,007 2,863,417 82,341

DEPRECIATION At 1 April 2018 69,829 - 55,275 Charge for year - - 2,895 Impairment 572,968 - - At 31 March 2019 642,797 - 58,170

NET BOOK VALUE At 31 March 2019 1,356,210 2,863,417 24,171 At 31 March 2018 1,929,178 - 26,436

Fixtures and fittings

Motor vehicles

Computer equipment

Totals

£ £ £ £ COST At 1 April 2018 126,895 43,872 38,080 2,289,565 Additions 656 - 772 2,083,125 Reclassification - - - 782,350

At 31 March 2019 127,551 43,872 38,852 5,155,040

DEPRECIATION At 1 April 2018 104,744 29,991 37,005 296,844 Charge for year 4,561 3,470 1,267 12,193 Impairment - - - 572,968

At 31 March 2019 109,305 33,461 38,272 882,005

NET BOOK VALUE At 31 March 2019 18,246 10,411 580 4,273,035

At 31 March 2018 22,151 13,881 1,075 1,992,721



Page 20

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 14. TANGIBLE FIXED ASSETS - continued

The reclassification relates to pre-construction costs incurred in earlier financial periods in connection with the Veteran Care Village capital project which had previously been classed as a debtor. As part of the Veteran Care Village capital project the existing building is scheduled to be demolished in January 2020. As a result, the value of this property excluding the freehold land is being impaired on a straight line basis to this date. The fair value in use of this property was assessed to be £1,356,210 at the balance sheet date.

15. HERITAGE ASSETS

Total £ MARKET VALUE Additions 56,375

NET BOOK VALUE At 31 March 2019 56,375

At 31 March 2018 -

Information on Heritage assets is given in note 2 of the accounts. All Heritage assets were first recognised in the current period.

16. FIXED ASSET INVESTMENTS

Quoted Investments 2019 2018 £ £ Market value at 1 April 2018 519,764 1,302,138 Additions 77,234 40,483 Disposals (80,283) (821,251) Net realised investment (losses)/gains 19,413 (1,606) Market value of shares at 31 March 2019 536,128 519,764 Cash held on deposit 51,032 31,521 Total value of investments at 31 March 2019 587,160 551,285

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Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 16. FIXED ASSET INVESTMENTS - continued

Quoted investments at fair value comprised: 2019 2018 £ £ Fixed interest securities 115,956 113,285 Equities 342,079 334,052 Property 28,830 25,970 Alternative assets 49,263 46,457 Cash held within the investment portfolio 51,032 31,521 587,160 551,285 All investments are carried at their fair value. Investments in equities and fixed interest securities are all trade in quoted public markets, primarily the London Stock Exchange.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019 2018 £ £

Other debtors 31,882 820,124

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019 2018 £ £

Trade creditors 62,351 54,111 Other creditors 367,915 65,993

430,266 120,104

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019 2018 £ £

Within one year 23,935 23,935 Between one and five years 28,734 52,669

52,669 76,604



Page 22

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 20. MOVEMENT IN FUNDS

At 1.4.18

Net movement in

funds

Transfers between

funds

At 31.3.19

£ £ £ £ Unrestricted funds General fund 130,823 (390,518) 523,422 263,727 Designated funds 3,281,993 (480,718) 2,061,886 4,863,161

3,412,816 (871,236) 2,585,308 5,126,888

Restricted funds Restricted funds 233 26,094 12,600 38,927 Care village capital project fund 3,475,045 80,245 (2,597,908) 957,382

3,475,278 106,339 (2,585,308) 996,309

TOTAL FUNDS 6,888,094 (764,897) - 6,123,197

Net movement in funds, included in the above are as follows:

Incoming

resources Resources

expended Gains and

losses Movement in

funds

£ £ £ £ Unrestricted funds General fund 1,207,929 (1,598,447) - (390,518) Designated funds 76,910 (577,041) 19,413 (480,718)

1,284,839 (2,175,488) 19,413 (871,236)

Restricted funds Restricted funds 67,517 (41,423) - 26,094 Care village capital project fund 206,472 (126,227) - 80,245

273,989 (167,650) - 106,339

TOTAL FUNDS 1,558,828 (2,343,138) 19,413 (764,897)


Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.4.17

Net movement in

funds

Transfers between

funds

At 31.3.18

£ £ £ £

Unrestricted Funds General fund 2,115,662 (434,064) (1,550,775) 130,823 Designated funds 1,648,712 28,973 1,604,308 3,281,993

3,764,374 (405,091) 53,533 3,412,816

Restricted Funds Restricted funds 233 53,533 (53,533) 233 Care village capital project fund - 3,475,045 - 3,475,045

233 3,528,578 (53,533) 3,475,278

TOTAL FUNDS 3,764,607 3,123,487 - 6,888,094

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Gains and losses

Movement in funds

£ £ £ £ Unrestricted funds General fund 1,330,073 (1,764,137) - (434,064) Designated funds 35,720 (5,141) (1,606) 28,973

1,365,793 (1,769,278) (1,606) (405,091)

Restricted funds Restricted funds 53,533 - - 53,533 Care village capital project fund 3,475,045 - - 3,475,045

3,528,578 - - 3,528,578

TOTAL FUNDS 4,894,371 (1,769,278) (1,606) 3,123,487



Page 24

Broughton House - Home for Ex-Service Men and Women Notes to the Financial Statements - continued For The Year Ended 31 March 2019 20. MOVEMENT IN FUNDS - continued

The General Fund is the 'free reserves' after allowing for all designated funds. The Trustees have agreed to set aside, wherever practicable, unrestricted legacy income into an unrestricted designated fund. This income is then used to increase the investment base and therefore investment income earned as a result. The long term aim of this is to ensure the Charity has a strong financial base where the investment income will make a significant contribution to ensure it is less reliant on donations. A freehold property designated fund was established in 2018 in order to separate the cost of the land and buildings from the liquid general funds. Designated fund At 1.4.18 Movement Transfers At 31.3.19 Investment fund 551,285 35,875 - 587,160 Capital project designated fund 801,530 - 2,061,886 2,863,416 Freehold property fund 1,929,178 (572,968) - 1,356,210 Museum collection - 56,375 - 56,375 3,281,993 (480,718) 2,061,886 4,863,161 The only material restricted funds relate to funds raised to fund the care village capital project on which construction began during the year end.

Transfers between funds £617,000 has been transferred from the restricted bank accounts to the general funds bank account to reimburse capital projects costs expended from general funds. £80,978 has been expended from general funds for restricted capital project expenditure, this had not been refunded at 31 March 2019. £12,600 has been expended from general funds for restricted support hub expenditure, this had not been refunded at 31 March 2019. As the restricted purpose has now been satisfied, £2,061,886 has been transfered to designated funds from restricted funds, reflecting the capital project costs now within tangible fixed assets.

21. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2019.

6 4 A N N U A L R E P O R T & A C C O U N T S M A R C H 2 0 196 4

when you go hometell them of us and say- for your tomorrow, we gave our today

Park Lane, Salford. M7 4JD0161 740 2737

www.broughtonhouse.com@broughtonhouse

THE CHARITY IS REGISTERED WITH THE CHARITY COMMISSION UNDER CHARITY NUMBER 1155225.

annual report & accounts...22 annual report & accounts march 2019 33 broughton house, park...

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