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2022-03-31-accounts

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Charity number 1009780

PEARSON’S AND ST ELIZABETH’S COTTAGE HOMES

FINANCIAL STATEMENTS

For the year ended 31 March 2022

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Contents Page
Trust information 3
Trustee report 4
Independent auditor’s report 11
Statement of income and reserves 15
Statement of financial position 16
Notes to the financial statements 17

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Trust information

The Trustee Worthing Homes Ltd
Davison House
North Street
Worthing
West Sussex, BN11 1ER
Auditors Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex, BN11 1QR
Principal solicitors Capsticks Solicitors LLP
1 St George’s House East
St George’s Road
Wimbledon
London SW19 4DR
Devonshires
30 Finsbury Circus
London EC2M 7DT
Bankers Lloyds Bank Plc
3rdFloor, 25 Gresham Street
London EC2V 7HN
The Royal Bank of Scotland Plc
9thFloor
280 Bishopsgate
London EC2M 4RB
Legal Status Registered charity number 1009780
Regulator of Social Housing number A1348
Registered Office Davison House
North Street
Worthing
West Sussex
BN11 1ER

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Trustee report

The charity and its principal activities

The charity is an amalgamation of the former Pearson’s Retreat Cottage Homes regulated by deed dated 26 July 1920 as affected by a Scheme of the Charity Commissioners of 19 April 1978, and St Elizabeth’s Almshouses regulated by a scheme of the Charity Commissioners of 11 May 1966. Approval for the aforementioned amalgamation was granted by the Charity Commissioners for England and Wales under seal dated 24 June 1991. Worthing Homes Limited acts as corporate Trustee of the charity.

The charity is also registered with the Regulator of Social Housing. Throughout the year the Trust complied with the Regulator of Social Housing’s Governance and Financial Viability Standard.

The main activity of the charity is the provision of social housing. The principal aim is to provide affordable housing to meet the needs of people over 50 years of age within the borough of Worthing. The charity will ensure that properties are managed and maintained to the highest standards.

The charity has a total of 74 units of accommodation as follows:-

1 – 14 Coronation Homelets: Small cottages converted to 8 studio bungalows and 6 one bed bungalows, scheme completed during 1991.

1 – 20 Pearson’s Retreat: A block of one bedroom flats built in 1977. 21– 48 Pearson’s Retreat: Pre-war cottages,

1 – 4 St. Elizabeth’s Almshouses: A major refurbishment programme including conversion into 4 self-contained flats was completed during 1993.

1 - 6 Pendle. A block of 6 general needs flats purchased during 2016.

Public Benefit Disclosure

The current activities of the charitable Registered Social Landlord are detailed in the Trustee report. The Trustee confirms that it has had regard to the Charity Commission guidance on public benefit when reviewing the charitable Registered Social Landlord’s aims and objectives and in planning future activities.

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Trustee report (continued)

Trustee

Worthing Homes Ltd was the sole corporate Trustee of Pearson’s and St Elizabeth’s Cottage Homes during the year.

The members of the board of Worthing Homes Ltd during the year were:

Paul Smith (Chair) Colin Goodwin Jennifer Graham Michael Burke (from 1 June 2022) Louise Murphy (to 6 May 2021) Nigel Perryman Helen Rice Celia Rowe Chongo Shula Chris Simpson Steve Wills (to 31 May 2022) Ed Crouch (from 1 August 2021) Vivien Knibbs (from 1 January 2022)

Secretary to the Trustee

Julian Pitcher

Performance for the year

The Trustee is reporting a surplus on ordinary activities of £129,000 (2021: £147,000).

The impact of COVID-19 seen during the last financial year has lessened with the number of responsive repairs returning to levels approaching pre-pandemic levels - £36,000 compared with £25,000 in 2021. Major repairs investment has also increased this year despite continued material supply issues.

The charity’s reserves at 31 March 2022 total £2,751,000 (2021: £2,581,000) which represented a total recognised surplus for the year of £170,000 (2021: £218,000). Of this surplus there was an unrealised gain on listed investments of £41,000 (2021: £72,000 gain). The balance being the surplus on ordinary activities of £129,000 (2021: £147,000).

Turnover during the year of £430,000 represented an increase of 5% over 2021 (£407,000).

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Trustee report (continued)

The investment in planned maintenance totalled £509,000 during the year (2021: £175,000):

Kitchen & Bathroom Refurbishments

Fire Safety Works

External Communal Improvement s

Communal improvements and internal decoration

Replacement careline system

Service agreements and associated work

Total		 £29,000
£4,000
£297,000
£20,000
£133,000
£26,000
£509,000

Of this, £452,000 was capitalised under the component accounting rules (2021: £151,000).

Future plans

The charity provides low cost housing in Worthing and maintains its existing stock through its annual maintenance programme. In the coming year the planned investment includes:

Car park extension
Kitchen and bathroom modernisations

External repairs

Replacement front doors

Replace gas boilers

Service agreements and associated work

Fire door replacements

EPC band C upgrades

Total
 £15,000
£35,000
£50,000
£8,000
£10,000
£44,000
£20,000
£30,000
£212,000

Fixed assets

The Trustee is of the opinion that the market value of the housing properties are in excess of the net book value. Details of changes in fixed assets are shown in notes 10 and 11 to the financial statements.

Value for money

Value for money means obtaining the best social outcomes using the resources available.

Obtaining value for money from our resources is essential to ensure we can continue to invest in the Trust and meet its aims of ensuring that properties are managed and maintained to the highest standards.

Securing value for money is embedded in our culture. We are focussed on providing an efficient and highly cost effective service to all our customers. The setting and performance against the Trust’s targets, service standards targets and budget are monitored by the Trustee.

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

The following tables detail the Trust’s performance against our targets. Customer satisfaction is measured using annual surveys on the anniversary of the start of their licence and feedback surveys after repairs

Excellent Customer Experience Actual
2022		 Target
2022
Overall customer satisfaction with services received from
Worthing Homes on behalf of Pearson’s		 87% 85%
Likely to recommend to family and/or friends (this is known
as net promoter score)		 +44.0 +50.0
% of customers that feel they are treated with respect 89% 85%
Satisfaction that your views are being listened to and acted
upon		 78% 70%
Satisfaction with most recent repair 81% 90%
% of emergency repairs attended to within 24 hours 100% 100%
Number of days to complete the repair (end to end times) 12 days 8 days
Satisfaction with major repairs / planned maintenance 100% n/a
Satisfaction with anti-social behaviour case handling n/a 85%
Percentage of complaints resolved within agreed timescale 100% 100%
Place shaping Actual
2022		 Target
2022
Satisfaction with neighbourhood as a place to live 89% 80%
Gas servicing - overall % of properties with a valid gas
certificate by anniversary date		 100% 100%
Fire safety - % of blocks with a valid / in-date fire risk
assessment		 100% 100%
Tenant satisfaction with the health and safety of their home 83% 85%
% of homes with‘C’energy efficiency rating 68% 80%
Great Business Actual
2022		 Target
2022
% rent arrears net of Housing Benefit 0.1% 0.5%
% rent collection 99.8% 100.0%
Average re-let time in days (standard re-lets) 35 days 20 days
% empty home rent loss 0.8% 0.5%

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Trustee report (continued)

Our performance against the value for money metrics is:

2022 2021 2020 2019 2018
Reinvestment % 11.1% 6.0% 5.5% 9.3% 3.6%
New supply delivered % (social
housingunits)		 0% 1.4% 0% 0% 0%
Gearing% N/A N/A N/A N/A N/A
EBITDA interest cover %
(Earnings Before Interest, Tax,
Depreciation, Amortisation, Major
Repairs Included)		 N/A N/A N/A N/A N/A
Social housing costsper unit £7,440 £3,622 £4,795 £5,863 £3,808
Operating Margin (social housing
lettings only)		 29.8% 37.6% 20.5% 19.7% 33.9%
OperatingMargin(overall) 29.8% 20.5% 20.5% 19.7% 33.9%
Return on capital employed
(ROCE)		 4.3% 5.2% 3.1% 3.0% 5.5%

The Trust has no loans, borrowings, or interest payable. So the gearing and interest cover calculations are not meaningful for the Trust.

The cost per unit has increased during 2021-22 due to the catch up in planned works delayed due to Covid. Correspondingly, the operating margin has dropped.

These financial statements demonstrate our track record in improving our operating efficiency and financial results. The Trust continues to maintain a strong financial position with a surplus in 2022 of £129,000 (2021: £147,000).

Statement of Trustee responsibilities

The charity is governed by Worthing Homes Limited (the Trustee). The Trustee has responsibilities for managing the affairs of the charity, and holds meetings four times a year. Members of the board of Worthing Homes Limited, the sole Trustee, are drawn from a wide background bringing together technical, professional and community skills. Board members are eligible for remuneration in accordance with the guidelines set by the Regulator of Social Housing.

Charity law and registered social landlord legislation requires the Trustee 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 surplus or deficit for that period.

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Trustee report (continued)

Statement of Trustee responsibilities (continued)

In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and enable it to ensure that the financial statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The Trustee is also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Reserves policy

It is the Registered Social Landlord’s policy to retain sufficient reserves to enable ongoing maintenance of the properties, with a minimum of at least £300,000. The budget is managed monthly to ensure reserves are adequate for both planned and unplanned maintenance. The reserves readily available for these purposes are regarded as the net current assets balance plus investments held at 31 March 2022 of £606,000.

We will utilise these reserves to fund planned maintenance works and sustainability works and a future development programme once suitable development opportunities arise.

Going concern

The Trustee, after reviewing the charity’s budget for 2022-23, has a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the audit report is signed. The Trustee has considered any potential impact of COVID-19 and have concluded that it will continue to not have a significant adverse financial or operational impact on the Trust. The Trustee has concluded that there is no material uncertainty in relation the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

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Trustee report (continued)

Statement of disclosure to auditor

Independent auditor

Carpenter Box have expressed their willingness to continue in office as the charity’s auditors and a resolution to reappoint them will be proposed at the Trustee Meeting.

By order of the Trustee 4 August 2022

Chair – Paul Smith _______

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Independent auditor’s report to the Trustee of Pearson’s and St. Elizabeth’s Cottage Homes

Opinion

We have audited the financial statements of Pearson’s and St Elizabeth’s Cottage Homes (the 'charity') for the year ended 31 March 2022 which comprise the statement of income and reserves, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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

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

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

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

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Pearson’s and St Elizabeth’s Cottage Homes Financial Statements 2022

Other information

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the Trustee

As explained more fully in the statement of responsibilities, the Trustee is 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 Trustee determines 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 Trustee is 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 Trustee either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and the relevant regulations made or having effect thereunder.

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

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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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the charity for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: compliance with the Charities Act 2011.

In addition to the above, our procedures to respond to risks identified included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planed and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the noncompliance.

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

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Use of our report

This report is made solely to the charity's members, as a body, in accordance with regulations made under Section 154 of the Charities Act 2011 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members, as a body, our audit work, for this report, or for the opinions we have formed.

21/9/2022

Robin Evans BA FCA CTA (Senior Statutory Auditor) For and on behalf of Carpenter Box Chartered Accountants Statutory Auditor Worthing

Carpenter Box is a trading name of Carpenter Box Limited

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Statement of income and reserves for the year ended 31 March 2022

Notes
Turnover
4
Operating costs
Loss on disposal of fixed assets
4
Operating surplus
Interest receivable
9
Surplus for the financial year
Unrealised surplus on investments
12
Total comprehensive income for the year
Reserves brought forward
Reserves carried forward		 2022
£
429,696
(301,760)
-
127,936
1,068
129,004
41,175
170,179
2,580,838
2,751,017		 2021
£
407,426
(254,291)
(7,943)
145,192
1,423
146,615
71,584
218,199
2,362,639
2,580,838

The Trust’s results relate wholly to continuing activities. The accompanying notes on pages 17 to 28 form part of these financial statements. The financial statements were approved by the Trustee on 4 August 2022 and signed on its behalf by:

Member of the board of Worthing Homes Limited (sole Trustee):

Chair – Paul Smith ______

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Statement of financial position for the year ended 31 March 2022

Notes
Fixed assets
Tangible fixed assets - housing properties
10
Tangible fixed assets – other
11
Investments
12
Total fixed assets
Current assets
Debtors
13
Cash and cash equivalents
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Net assets
Reserves
Income and expenditure reserve
Total reserves
2022
£
2,212,515
146,095
406,943
2,765,553
51,113
406,810
457,923
(258,754
)
199,169
2,964,722
(213,705 )
2,751,017
2,751,017
2,751,017		 2021
£
1,957,774
-
365,768
2,323,542
16,903
521,772
538,675
(64,859 )
473,816
2,797,358
(216,520 )
2,580,838
2,580,838
2,580,838

The financial statements were approved by the Trustee on 4 August 2022 and were signed on its behalf by:

Members of the board of Worthing Homes Limited (sole corporate Trustee):

Chair – Paul Smith ______
Board member – Jennifer Graham ______
Secretary to the Trustee – Julian Pitcher ______

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements For the year ended 31 March 2022

1) Legal status

Pearson’s and St Elizabeth’s Cottage Homes is a Trust, a registered charity with the Charity Commission and is registered with the Homes and Communities Agency as a social housing provider. The housing Trust is a public benefit entity. The nature of the Trust’s operations and principal activities are the provision of social housing.

2) Accounting policies

Basis of accounting

The financial statements have been prepared in accordance with applicable law and UK accounting standards (United Kingdom Generally Accepted Accounting Practice) which for Pearson’s and St Elizabeth’s Cottage Homes includes the Housing and Regeneration Act 2008, FRS 102 “the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland”, the Statement of Recommended Practice (SORP) for Registered Social Housing Providers 2018, the Accounting Direction for Private Registered Providers of Social Housing 2019.

The accounts are prepared under the historic cost basis, modified to include certain items at fair value.

The financial statements are prepared in sterling, which is the functional currency of the Registered Provider, and are rounded to the nearest £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates (note 3). It also requires the Trust’s management to exercise judgement in applying the Trust’s accounting policies.

The following principal accounting policies have been applied:

Going concern

The Trustee, after reviewing the charity’s budget for 2022-23, has a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the audit report is signed. The Trustee has considered any potential impact of COVID-19 and have concluded that it will continue to not have a significant adverse financial or operational impact on the Trust. The Trustee has concluded that there is no material uncertainty in relation the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

2) Accounting policies (continued)

Income

Income is measured at the fair value of the consideration received or receivable. The Trust generates the following material income streams:

Tangible fixed assets – Housing properties

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are stated at cost less depreciation.

The cost of housing land and property includes the cost of acquiring land and buildings, development costs, interest capitalised during the development period, directly attributable administration costs and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties.

Expenditure on major refurbishment to properties is capitalised where the works increase the net rental stream over the life of the property. An increase in the net rental stream may arise through an increase in the net rental income, a reduction in future maintenance costs, or a subsequent extension in the life of the property. All other repair and replacement expenditure is charged to the statement of comprehensive income.

Depreciation of housing properties

Housing land and property is split between land, structure and other major components that are expected to require replacement over time with substantially different economic lives.

Land is not depreciated on account of its indefinite useful economic life.

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

2) Accounting policies (continued)

Housing properties are split between the structure and the major components which require periodic replacement. The costs of replacement or restoration of these components are capitalised and depreciated over the determined average useful economic life on a straight line basis as follows:

Land not depreciated Roof - pitched 60 years Structure 100 years Roof - flat 30 years Windows 30 years Boiler 15 years Kitchen 30 years Lift 25 years Bathroom 30 years Electrics 40 years Heating 30 years Doors 30 years

Tangible fixed assets – other

Other tangible fixed assets are stated at historical cost less accumulated depreciation which is calculated on a straight line basis over 20 years.

Listed investments

Listed investments are shown at market value. Any unrealised surplus or deficit is recognised in the statement of income and reserves.

Government grants

The grant received in relation to newly acquired or existing housing properties is accounted for using the accrual model set out in FRS 102 and the Housing SORP 2018. The grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic lives of the asset for which it was received. In accordance with Housing SORP 2018 the useful economic life of the housing property structure has been selected.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year qualify as basic financial instruments and are recorded initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment losses. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Creditors are recognised when there is a present obligation resulting from a past event that will result in the transfer of funds to a third party as the amount due to settle can be measured reliably.

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements

for the year ended 31 March 2022

2) Accounting policies (continued)

Recoverable amount of rental and other trade receivables

The Trust estimates the recoverable value of rental and other receivables and impairs the debtor by appropriate amounts.

Rent and service charge agreements

The Trust has made arrangements with individuals and households for arrears payments of rent and service charges. These arrangements are effectively loans granted at nil interest rate.

Cash and cash equivalents

Cash and cash equivalents in the Trust’s statement of financial position consists of cash at bank, in hand, deposits and short term investments with an original maturity of three months or less.

Apportionment of management expenses

The income and expenditure account has been charged with a sum of management expenses based on the time spent by Worthing Homes Limited staff on the charity’s activities. A separate allocation relating to maintenance supervision and overheads has also been made.

Cash flow statement

The charity has taken advantage of the exemption for a cash flow statement as permitted by section 3.10 of SORP 2018.

Reserves

The revenue reserve reflects the historic realised surpluses of the Trust as well as the unrealised surpluses and deficits of the investments. The reserves will be utilised to further the aims of the Trust with Trustee approval.

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements

for the year ended 31 March 2022

3) Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the key judgements have been made in respect of the following:

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to changes to decent homes standards which may require more frequent replacement of key components. Accumulated depreciation at 31 March 2022 was £527,304 (2021 - £480,252).

Impairment

Annually housing properties are assessed for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the housing property’s carrying amount to its recoverable amount. Where the carrying amount of a scheme is deemed to exceed its recoverable amount, the housing property is written down to its recoverable amount. The resulting impairment loss is recognised as operating expenditure. Where a housing property is currently deemed not to be providing service potential to the association, its recoverable amount is its fair value less costs to sell.

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Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements

for the year ended 31 March 2022

4) Income and expenditure from social housing lettings

Income from social housing lettings
Maintenance contributions from licensees
net of identifiable service charges
Service charge income
Amortised government grants
Turnover from social housing lettings
Expenditure on letting activities
Management
Service charge costs
Responsive maintenance
Planned maintenance
Bad debts
Depreciation of housing properties
Depreciation of other fixed assets
Disposal of components
Operating expenditure on social
housing lettings
Operating surplus on social housing
lettings
Void losses
5)
Units of housing stock
Homes owned but managed by other
landlords
General needs housing
Housing for older people
Total		 2022
£
325,181
101,701
2,814
429,696
81,783
72,617
35,634
56,509
3,779
49,267
2,171
-
301,760
127,936
(3,137 )
2022
Number
10
64
74		 2021
£
314,004
90,608
2,814
407,426
81,759
74,176
25,360
25,873
2,003
45,120
-
-
254,291
153,135
(5,689)
2021
Number
10
64
74

22

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

6) Operating surplus

2022 2021
£ £
Operating surplus is stated after charging:
Fees payable to the auditors for the
audit of the financial statements 8,328 6,250

7) Employee information

The charity has no employees. Time spent by Worthing Homes Limited’s employees on the charity’s activities are recharged in accordance with the accounting policy.

8) Key management personnel

Worthing Homes Limited is the sole Trustee of Pearson’s and St Elizabeth’s Cottage Homes. The key management personnel are the board members and executive directors of Worthing Homes Limited.

No key management personnel received any emoluments or expenses from Pearson’s and St Elizabeth’s Cottage Homes during the year (2021 – nil). Remuneration was paid by Worthing Homes Limited and is disclosed in those financial statements.

9) Interest receivable

Investment interest 2022
£
1,068		 2021
£
1,423

23

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

10) Tangible fixed assets – housing properties

Cost
At 1 April 2021
Additions:
- Replaced components
- Assets under construction
- Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals – Replaced components
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
The housing properties are freehold.
Works to properties
Improvements to existing properties
capitalised
Major repairs expenditure to income and
expenditure account
Total cost of major repairs and improvements
works to existing properties		 Social housing
properties held
for letting
£
2,438,026
27,733
276,274
(2,214)
2,739,819
480,251
49,267
(2,214)
527,304
2,212,515
1,957,774
2022
£
2021
£
304,006
60,826
38,359
11,022
342,365
71,848		 Social housing
properties held
for letting
£
2,438,026
27,733
276,274
(2,214)		 Social housing
properties held
for letting
£
2,438,026
27,733
276,274
(2,214)
2,739,819
480,251
49,267
(2,214)
527,304
2,212,515
1,957,774
2021
£
60,826
11,022
71,848

24

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements

for the year ended 31 March 2022

10) Tangible fixed assets – housing properties (continued)

Total social housing grant

Total accumulated social housing grant
received or receivable at 31 March:
Recognised in the statement of
comprehensive income
Held as deferred income
11)
Tangible fixed assets – other
Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 2022
£
2,814
216,519
219,333		 2021
£
2,814
219,333
222,147
Equipment
£
43,061
148,226
191,327
43,061
2,171
45,232
146,095
-

25

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2021

12) Investments
As at 1 April
Unrealised (deficit) / surplus
As at 31 March
Details
1,544 (2021 = 1,544) COIF Accumulation
Shares
172 (2021 = 172) NAACIF Accumulation
Shares
423 (2021 = 423) COIF Income Shares
25,380 (2021 = 25,380) NAACIF Income
Shares
Listed Investments (Fixed Assets)
The COIF and NAACIF Shares are listed investments
Cost at 31 March
Market value at 31 March
13) Debtors
Due within one year
Rent and service charges receivable
Less: provision for doubtful debts		 2022
£
365,768
41,175
406,943
357,073
18,314
8,237
23,319
406,943
59,350
406,943
2022
£
56,791
(5,678 )
51,113		 2021
£
294,184
71,584
365,768
319,873
16,511
7,583
21,801
365,768
59,350
365,768
2021
£
19,951
(3,048 )
16,903

26

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

14) Creditors: amounts falling due within one year
Licensees maintenance contributions, support
charges and amenity charges received in
advance
Other creditors
Deferred capital grant
15) Deferred capital grant
At 1 April
Released to income in the year
At 31 March
Amounts to be released within one year
Amounts to be released in more than one
year		 2022
£
3,164
252,776
2,814
258,754
2022
£
219,333
(2,814 )
216,519
2,814
213,705
216,519		 2021
£
1,814
60,232
2,813
64,859
2021
£
222,147
(2,814 )
219,333
2,813
216,520
219,333

16) Capital commitments

At 31 March 2022 there are capital commitments of £81,000 relating to the installation of digital careline systems at Pearson’s Retreat (2021: £135,000 relating to communal works at Pearson’s Retreat).

27

DocuSign Envelope ID: 4F96CD5F-0BF8-4991-89F2-62A3525A5601

Pearson’s and St Elizabeth’s Cottage Homes Financial statements 2022

Notes to the financial statements for the year ended 31 March 2022

17) Related party transactions

The charity had the following related party transactions in the year:

All items of income and expenditure go through Worthing Homes Limited’s accounts on the charity’s behalf before being paid to the charity’s bank account.

During the course of its business, Worthing Homes has collected maintenance contribution income on behalf of Pearson’s and St Elizabeth’s Cottage Homes and forwarded such monies to them, and paid all of their costs on their behalf and recharged these to the Trust. Worthing Homes Limited is the sole Trustee. The outstanding net balance at 31 March 2022 was a £29,500 creditor balance (2021:£16,700 debtor balance). This balance comprises £62,300 receivable in respect of maintenance contribution income collected by Worthing Homes (2021: £26,500), and £91,800 payable in respect of recharged costs (2021: £9,800).

The charity incurred management charges of £48,900 (2021:£50,000), Caretaking £16,300 (2021: £15,700), recharged service and support costs of £30,800 (2021: £31,600), and gardening costs of £12,100 (2021: £12,100) from Worthing Homes Limited during the year.

28