Statutory reporting Season 2021/22 and areas to look for in statutory records and forecasts

With the onset of a new year part of preparing financial lending proposals looks at historical performance, current management information and forward forecasting.

For care home acquisitions and sales the above is all relevant information for a Finance Broker as well as the stakeholders in the business.

The effects of the pandemic after two years are ongoing as well as the additional supply chain issues of BREXIT.  When looking at a new care business or an existing one, having reliable reporting information immediately to hand helps a loan application progress faster with the potential lender.

For a care home, demonstrating past years and current occupancy trends also adds weight to a finance submission.

For existing care businesses looking at the next stage in their growth strategy, demonstrating the procedures put in place to cope with the pandemic provide evidence of current and forward-looking viability and sustainability.  Evidence for the Regulator (CQC, CIW, CI) as well as stakeholders.  Creating a positive cash flow or demonstrating that some temporary funding is required to gap fill whilst, for example, a care home returns steadily to pre pandemic occupancy levels, or funding pay rises for care staff across the sector, or funding additional Infection Prevention and Control equipment are all areas that can be included in a forecast.

If the statutory records show that some assets have been impaired, consider the factors needed to reverse this impairment.  Does your care business require an updated valuation?  Is the care home property asset in need of renovation?  If so, it is always useful to seek an expert’s help to consider the options available.

Another area where there is increasing importance is where the statutory records show adjustments after the recording period.  Discuss these areas with the business accountant, internal and external as appropriate.  For example, a new government intervention may be brought in to mitigate economic pandemic impact.

In addition to the above, as mentioned in previous insights, increasingly a business will need to consider climate related matters and actions that the business is taking.  Businesses also need to consider other risks when looking at their ongoing Governance, including cyber and supply-chain risks.

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