HIGHLANDS COTTAGE CHARITY (Registered No 1012785) Registered addrth8- Follifoot House, Amberleys Stroud, GL5 SAG TRUSTEES THtRTY-THIRD ANNUAL REPORT 202312024 l. Introduction. (a) Governing Document: The Charity was founded in 1992 by Miss Mary Layard White, fomierly of Highlands Cottage, Pinfarthings, Amberlcy. The Trust Deed was completed on 27 April 1992 and made between Mary Layard White, James Albert Meadows, Anne Elisabeth Seymour, Anne de Halpert and Peter Duff Abbott Hankins. A supplemental Trust Deed was entered into on the 10th November 2016 and made between the continuing Trust¢es, namely: Peter Duff Abbott Hankins, Vivian Leivers, Roger Jefftey Bush. Richard James William Wood, Susan Jane Page, Beryl Anne Phillips and Michael John Bullock. O)) Names of the current Trustees: Pet¢r Duff Abbott Hankins, Vivian Leivers, Roger Jeffrey Bush. Richard James William Wood, Susan Jane Page, Beryl Anne Phillips and Sandra Jane Lampard (c) Names and addresses of adviscrs to the Charity: l. Independent Examiner: Mrs Penny Loe, Chartered AccountanL Edgecombe, Amberley, GL5 SAB 2. Solicitors: WSP Solicitors, 317 Rowcroft, Stroud, GL5 3BJ and Willans LLP, 28 Imperial Square, Cheltenham. GL50 1 RH 3. Bankers: Lloyds Bank, 12 Rowcroll Stroud, GL5 3BD 4. Managing Agents: Bennett Jones Partnership, 31 Parsonage Street, Dursley, GLI 14BW 5. Architect: Chris Stone, Quadr Nethercou¢ Hyde, Stroud. GL6 8NZ 2. Charitable Objects. The income of the said Trust Fund and such of the property as the Trustees shall direcL shall be used for charitable purposes for the benefit of the inhabitants of the Parish of Amberley and the contiguous parishes thereof, including but not confined to the following purposes: (l) The provision of a house or other suitable accommodation for a Minister or Curatc of the Church of England or other paid Church worker in the Parish (2) The provision of a house or other suitable accommodation for the poor andlr needy in the Parish and the contiguous parishes. "Needy" shall rnean those in need by reason of youth, age, ill-health, disability, financial or other disadvantage. (3) The provision of a house or other suitable accommodation for an employee of Amberley Parochial Church School or any other ¢ducational establishm¢nt in the Parish. In administering the charity, the Trustees have considered the Charity Commission's general guidance on Public Benefit and consider the Charity is fulfilling its objects and public benefit requirement by providing subsidised housing to people in need in the Parish of Amberley and its contiguous Parishes. Accounting Principles. In accordance with the Charity Commissioners guidelines, the treasurer has adopted the following principles: (l) Best use of expendable funds, Continuing to maintain all its propety and fixtures to a reasonable standard. (2) The rental income is paid to Lloyds Bank monthly and the sums are transferred between Lloyds Bank Investment Accounts {whcn available) andlor into COIF Charities Deposit Fund thereby gaining the benefit of the best available interest rates
- Investment Policy. (a) The Trustees continue to consider tbat the yields on investments, represented by the rental incom¢ at rntes advised by the Managing Agent and the Council Rent Office, ar¢ reasonable and are p¢riodically reviewed and increased in line with inflation. See also note 7 (c). (b) During the current year the Trustees continue to invest in COIF Charity Accounts. However, they have not continued to make short tcnn investments with Lloyds Bank wher¢ the minimum investmen( albeit for a defined short period of time. would leav¢ insufficient funds to meet any major uneXd cost. (c) The Trustees believe that the investment accounts are well managed. Permanent Endowments. There have been no changes during the current year Trustees. (a) The Trustees are all appointed in accordance with the Governing Trust InstrLunents. (b) Vesting of Assets. Thc properties known as New Lodge, Little Lodge and BRackwell Cottage remain vestcd as heretofore. The Chairn]an and the Treasurer hold the Investment Funds. (c) The Trustees have met fonnally throughout the year. The general maintenance of the properties is constantly under review and an ongoing plan of maintenance / repair is in place. (d) The Accounts, drawn up by our Independent Examincr, for the year to 31 July 2024 are included with this report. Activities This year we have received a full year's r¢nt on all our properties which has enabled the Trustees to continue to maintain reserves whilst at the sam¢ time to support a pro-active programme of repairs and improvements to all properties; in addition, a significant refurbishment of Flat 3, New Lodge was b¢gun with a re-fit of the bathroom and extensive damp prevention work. (a) New Lodge Flat I The flat has been fully tenanted this year requiring only minor maintenance issues which are covered by our monthly small maintenance budget. There is a budget of £2,000 carricd fonward for a potential replacement kitchen work top. Flat 2 The flat has required only minor maintenance which was covered by our monthly small maintenan¢¢ budget with a budget of £5000 carried forward for kitchen refurbishment. Flat 3 Rcfurbishment of Flat 3 was started with £ 7,090 spent on stripping out the existing bathroom and replacing it. removing mould throughout the flat, and damp-blocked and walls painted. Replacement carpets and storage heaters have been carried forward in our budget at £ 4,600, and also £4,000 for a replacement water system. Blaekwell Cottage Electrical and lighting repairs have been covered by our small expenditure budgeL with a budget of £1,000 carried forward for wet flooring in the bathroom. Little Lodge
Maintenance was largely met within our small expenditure budget. £500 was spent in addition, to supply and fit new th¢rniostats for the undert]oor heating. (b) Managing Agents The Trustees have continued to contract thc responsibility of Property Management to a local company, Bennett Jones Partnership of Dursley. This has proved to be particularly successful and necessary repairs are being carried out with the minimum of delay. The Trustees continue to maintain the principle of requiring the managing agents to use local trades people where practicable. Their monthly fe¢ continues to b¢ £300. (c) ReDt Review The Trustees strive to ensure that rents set for the Charity's properties reflect the Objects of the Charity. It was decided this year to increase rents in August by 20/0 plus CPI and these increases have been accepted by all tenants. (d) Charitable Incorporated Organisation To facilitate management of the Charity for the future, the process of establishing a Charitable Incorporated Organisation (CIO) continues. The CIO will tske over the activities, asset& and Itabilities of the cxisting Charity. The CIO has not yet been established due to issues in communication within and with Lloyds bank. It was hoped that the process would have been ompleted within this year, however it remains a work in progress with the solicitors and the (e) General Dats Protection Regulation During the year the new approach to handling pcrsonal data has come into force under the title of General Data Protection Regulation. Whilst a mintmal amount of personal data is stored electronically the Trust does retain data in paper files. During the coming year it is intended to update the policy on GDPII introducc a new privacy statement and involve tenants in the infonnation that is r¢tained. (fj Deposit Protection Scheme At the commencement of a new tenancy the tenant pays a deposit, against possible breakages or damage to the property, detennined by the monthly rental. The Trustees place these funds in the nationally approved Deposit Protection Service where they are protected and outside the current account and investment funds held by the Trust. Currently, £3,01 l is held on deposit received from the tenants. Risk Review. The Trustecs frequently review the possibl¢ risks to which the charity is exposed and believe that th¢se are covered by relevant procedures and cash reserves. Reserves and financial management The HCC have established the following fmancial reserves policy: To maintain a reserve calculated as 70 % of the average annual eXpendjtLe over the previous three years (not including major costs of rebuilding and roofing, or mortgage commitments) to meet the challenge of a disrupted income supply To maintain a reserve calculated as l 00 /0 of the required annual expenditure on mortgage commitments in the event of a disrupted income supply To maintain a sum not less than £5,000 to meet support for tenants unable to remain in one of the Charity properties due to fire, flood, major repairs etc.
The Trustees calculate that £22,000 is currently needed to meet this policy and there arc sufficient fid$ within HCC to support this figure. As part of their financial managemen( HCC have undertaken to Include in their annual budget a provision for unplanned expenditure equal to 25 % of the figure budgeted specifically for repairs. Ensure the proper level of insurance is held to mitigate the effect of loss of rent, damage to propety and Tntee liability. Sandra Lampard Honorary Treasurer Highlands Cottage Charity Roger Bush Chairn]an Highlands Cottage Charity Date 202£k
Independent examineVs report to the Trustees of Highlands Cottage Charlty I report on the accounts of Highlands Cottage ChaTity (The Trust) for the year ended 31 July 2024, ¥thich are set out on pages 6 to 9. R•8ponslbllllles and ba818 of the report As the charlty trustees of Ihe Trust, you are responsible for the preparation of the accounts in accordanc8 With Ihe requirements of Ihe Charities Acl 2011 (the Act). I report in respect of my examination of the Trusvs accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable directions glven by the Charity Commission under section 145(5)(b) of the ACL Independent examlnerfs Btatsmènt I have completed my examlnation. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe that in any materlal respect: accounting records were not kept in respect of the Trust as required by sectlon 130 of the Act; or the accounts do not accord with those records; or the accounts do not comply with the applicable requirements conceming the fomi and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any UlTern8nt that the accounts give a true and fair VI which is not a matter considered as part of an independent examination. I have no concems and have come across no other matters In connection with the examlnatlon to whith attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Penny Loe PSLoe&Co Chartered Accountant Edgecombe, Amberley, Stroud 1 November 2024
HIGHLANDS COThAGE CHARrrY STATEMENT OF FINANCIAL ACTIVITIES: YEAR ENDED 31ST JULY 2024 Note Desi nrestnct Funds nat8d Total Funds T Funds 2024 Funds 023 Income Rents and Ilcence fees Other incorrE - compensation Bank and other interest 44,832 44,832 30,256 105 832 1,147 1,147 Total Income 45,979 45,979 30,993 Expenditure 29,990 29,990 36,710 Net Incomel(Expenditure) for the year 15.989 15,989 (5,717) Balances brought forward at 1 August 2023 248,973 5,465 254,438 260,155 Transfer between funds Balances carrled ford at 31 Juty 2024 264,962 5,465 270,427 254,438 The notes on pages 8 and 9 form part of these accounts.
BALANCE SHEEf AT 31ST JULY 2024 Note 2024 2023 Flxod Assets Freehold property New Lodge and Little Lodge, at cost 413,882 413,882 413.882 72,914 486.796 413,882 72.914 486,796 Blackwell Cottage Tangible fixed assets- Fumishings and equipment Cost bff additions 10,094 10,094 10,094 9.012 271 Depreciation blf charge for year 9,282 203 9,485 609 487.405 811 487,607 Current Assets Debtor8 and prepayments COIF Charities Deposit Fund Lloyds account 23,201 30,313 22.054 18,807 L5abllltles Amounts falling due within one year 4,207 4,207 4.002 4,002 Net Cuwrent As80ts Net A8Bet8 49,307 536,712 38.859 524,468 Long term Ilabllltles 63,197 66,940 473,515 Funds Endowment Designated Unrestrthd 457,526 203,088 5,485 264,962 473,515 203,088 5,465 248,973 457,526 Approved by th Trustees on 7 N vember 2024 and signed ts behalf by Roger Bush, Chaimian The notes on pages 8 and 9 fom part of these accounts.
HIGHLANDS COTTAGE CHARrrY NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST JULY 2024 1. Aceountlng Pollcle8 a) These financial ststsments have been prepared under the historical cost conve10n and in aCcOrdn wth applicable Accounting Standards, The Chartlies Act 2011 and the Charities SORP (FRS102) b) The accruals basis of accounting is used for Income and expenditure. c) Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. d) Depreclation is calculated to wrlte off the cost, less estimated residual values, of tsngible fixed assets over their estimated useful lives to the scheme. Slnce 1996. fumiture and equipment has been dePlated at 25% pa on the reducing balance method; prior to 1996 such expenditure was written off in the year of purchase. No depreci*ion is provided on freehold buildings because in the Trustees oplnlon the real (inflation adjusted) estimated residual value ts not less than the carryiTVJ value in the accounts. 2. ExndftUrn 2024 2,170 3,600 13,193 2023 1,541 3,354 19,241 2,261 4,926 Prcpety insurance Propety surveyor and agent Repairs and maintenance Utilty bills when property vacant Legal fees general Trustee Indemnity insurance Mortgage interest Sundries Independent Examiners fee Depreciation of fumishings, equlpment 4,429 il 621 5,372 37 360 203 29,990 4,155 360 271 36,710 3. Debtors 20 202 Trade debtors 4. Llabllttle8: Amounts falllng due wlthln one ar Credltors Accruals Repayment due on mortgage - see nots 5 360 3,847 4,207 360 4,002
HIGHLANDS COnAGE cHARy S. Long tsrm Ilabllftles A 25 year mortgage of £155,01)O was obtained from Lloyds Bank in order to fund the development of the Old Cart Shed, in the grounds of New Lodge, completed in February 2011 and now. as Little Lodge, let out as residential accommodation. The mortgage is secured on another propety owned by the charity, Blackwell Cottage 6. Employoe8' remuneratlon There were no employees durlng the year 7. TN8tees' rnmuneratlon and expen8e8 No trustee receNed any remuneration or reimbursement of expenses during the year. The trustees were advlsed that Ihe charity should take out trustee indemnty insurance. this cost £564 {2023: £564) 8. Designated and rostrIc Funds lance ent in Resou Balan 1.8.23 31.7.24 ncomin oin Contingency Fund AE Pash Charitable Trust donation 5,000 465 5,000 465 5,465 There are no restricted fvnds held by the Charty. The Contingency Fund reflects the Trustees, policy of retaining £5,01)O to meet support for tenants unable to remain in one of the propertles due to fire, 17ood, major repairs etc. The Trustees propose to use the donation frorn the AE Pash Charitable Trust, received on the winding up of that Trus( for a specified purpose, to be detsnnined. 9. Anatysls of not a88ets between funds as at 31 Juty 2024 . ed Net Current LternI Assets 203,088 Total 2024 203,088 5,465 5,465 43,842 63,197 264,962 63,197 49.307 473,515 otal 2023 203,088 5.465 248,973 457,526 Endowment un Desi ated Fund restrict 284,317 487,405