THE LORD MAYOR OF PORTSMOUTH'S ORONATION HOMES Acom an limited b uaranlee Homes and Communities Agency registration number: L4207 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAR H 2024 Reglslered No., 3488197, Charlty Reglstered No: 1067408 MORRIS CROCKER STATION HOUSE NORTH STREET HAVANT HAMPSHIRE ADDSGCTT 1511012024 COMPANIES HOUSE A14
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THE LORD MAYOR OF PORTSMO (A company limited by guarantee) TH'S CORONATION HOMES REGISTERED OFFICE 61 CoronaiAon Cottages Norihern Parade Portsmouth Hampshire P02 9LZ AUDITORS Sumer Audit Piper House 4 Dukes Court Bognor Road Chichester West Sussex P019 8FX SOLICITORS Blake Morgan LLP New Kings Couil Tollgate Chandlers Ford Eastleigh Hampshire S053 3LG PRINCIPAL BANKERS Lloyds Bank plc Portsmouih Business Centre 38 London Road Norih End Portsmouth Hampshire P02 OLR ACCOUNTANTS Morris Crocker Chartered Accountants Station House Havant Hampshire P09 IQU
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 20 Page Contents Report of the Board Independenl Auditors, report Income and expenditure account 10 Balance sheet Statement of Changes in Reserves 12 Cash flow stalement 13-23 Notes to the financial statements Detailed income and expenditure account 25 Operating costs
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE B ARD- 31 MARCH 2024 The Board present their report and audited financial statements for the year ended 31 March 2024. Objects The Charitable Company is established as a registered provider of social housing with (he Homes & Communities Agency An order to provide and manage houses or dwellings and any associated amenities for aged persons. Principal activity Th¢ principal activity of the Charitable Company is that of administering the properLies and associated amenities for the benefit of the occupants. Financial performance The CharAtable Company has realised a surplus for the financial year of £108.084. The retained surplus at 31 March 2024 is £4,243.016. The Board continues to actively pursue future developments, whilst retaining reserves for futurc major and cyclical repairs Board members The Board members who currently hold office are; Mr R Sparshatt - Chairman (Resigned 30th September 2023) Mrs S Hewett Cllr F Jonas Mrs A O'Hara Mr R Perry Mr D Simpson - Chairnian (From 1st October 2023) Mr D Hull (Appointed 1st March 2024) Ms A Jones (Appointed 1st March 2024) Members, interests The liability of every member of the Charitable Company is limited lo £5 in the event of the Charitable Company being wound up. Fixed assets Full disclosure of all matters relating to fixed assets is set out in the notes to the financial statements. Accounting policies The accouniing policies are set out in Note l on pages 13 to 17 of the financial siatements. BoArd member responsibilitles The Board members are responsible for preparing the financial statements in accordance with applicable law and Uniled Kingdom Generally Accepted Accounting Practice. Company and housing association legislation requires ihe Board members to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the Charitable Company and of the income and expenditure of the CharAtable Company for the period in preparing those finaThcial sratements. the Board members are required to.. select 5Ultable accouniing policies and then apply them consistently* make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any maierial departures disclosed and explained in the financial statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume thai the Charitable Company will continue in business.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD- 31 MARCH 2024 The Board members are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time (he financial position of the Charitable Company and to enable them to ensure that the accounts Comply with the Housing and Regeneration Act 2008 and the Accouniing Direction for Private Registered Providers of Social Housing 2019. They are also responsible for safeguarding Ihe assets of the Charitable Company and hence for taking reasonable sieps for the prevention and de¢(lon of fraud and other ]egUlaritIeS. Value for money The Board AS commifted 10 achieving value for money in all areas of Ats business by managing all assets and resources efficiently. The Board sets objectives and allocales resources appropriately io achieve best possible oulcomes. This includes improvements to property to enhance the quality of life of those we support. developing the capability of the staff team by regular staff iraining and valuing their conlribution. having effective business practices, including risk assessment, Sirengihening policies and procedures to reduce adminAStration costs, improve performance, service delivery and identifying potential changes to improve value for money. The A550ciation's cuent rcnt charges remain in line with expected social rents across all properiies. Additionally, superficial inspeciions are made on a random basis at a selection of properties to ascertain the general conditions. The properties across the estate have been found to be well maintained, iniernal and external decorations were in satisfacrory order and there was no evidence of essential major repairs required. Th¢ Association maintains an up to date and agreed historical record of expenditure on each housing unit of the properties of the Homes. The Board feels this this is of great assislance when it comes to identifying refurbishments Ihat need to be made when void rents occur. It was also recognised by the Board thai this was a very useful inlernal control over such an important pari of the Association's expenditure as it would allow a means of comparison of costs which are similar in naiure. Furihern)ore, it would allow the Association to recognise a financial commitment in terms of those unit5 where long term residenls have been in silu and expenditure will be necessary in the future. The Association carries out all cyclical and annual maintenance when due. Almost all of the properties have had new boilers fitced and others have had new bathrooms and kitchens fitled during this year, This has been evidenced in the Association'i accounts which show the spend on maintenance per unit in the year indicating that the general condition of the properties as a whole continue to improve, as follows: 2024 2023 Total repairs and maintenance costs Social housing units in management Maintenance COSt per unit 120,570 82 1,470 132,091 82 1,611 The overall perc¢ntage of rent lost due to voids has been exeepiionally low and better than the sector average at just 0.20/0 (2023: 1.71¢).
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES REPORT OF THE BOARD - 31 MARCH 2024 Value for Money is also measured by the Board by demonstrating a reasonable Return on Assets in the accounts. as follows: 2024 2023 Operating surplus from social housing activities 88,589 Net book value of properties held for social lettinE 1,985,904 Financial return on assets 4.4610 102.097 2.006,386 5.09% The Board is commiiied to improving the fjnancial return on assets year on year through annual budget selling and monitoring of monrhly variance reports. The Board is also committed lo keeping the cash held ai bank and in hand as secure as possible in the current economic climate, A variety of options have been researched and discussed by the board including the additions of investment property, government gilts as well as other invesimeni options such as increasing current holdings in listed invcslments and corporate bonds, The health and safely of the slte and its residents 15 a key priority for the Associacion as demonstrated through regular site inspections to ascertain any particular areas of the sile (hat could be potentially hazardous for residents. as well as the appoin¢menl of an external health and safety officer who conducts annual risk assessments to give further comfort 10 the Board and residents alike. During the year continued investmeni and routine maintenance ha8 been made to improve and maintain Ihe gardens, which has been well received by residents, Ihis spend totalled £24,912 in 2024 compared (o £19.167 in 2023. The Association seeks to provide Social Value for its rebidents. Thi5 is delivered through a variety of social event5 and activities taking place in ihe communal areas of the sile OTganised by ihe site Warden, where regular resident's rneetings are also held lo give opportunity for discussion of any concerns or ideas. The events are generally well ailended and received by the community of residents. The Value for Money metrics are as follows.. Reinvestment 2.74¢70 (2023.. 2.41%) New supply delivered 0% (2023.. 0%) Gearing -20.41% (2023.. _15.76%) EBrrDA MRI Tnterest Cover NIA {2023.. NIA) - no borrowings Social housing cosr per unit £4,728.20 (2023.. £4.248.17) Operating margin 20.81 % (2023., 25.09%) Return on capltal employed 2.59% (2023.. 2,82%) Reserves The Charitable Company internally designate5 It5 free income and expenditure reserves on the following basis: Cyclical Repairs Major Repairs Development 50,0(YJ 150,01)0 910,732 The cyclical maintenance reserve ha5 been eslabli5hed to cover planned internal and external decorating of the Charitable Company's housing properties. The major repairs reserve has been established to cover expenditure on major repairs, improvements and replacemen of equipment in the Charitable Company's housing properties. The development reserve has been established to cover expenditure on future development opportunties.
THE LORD MAYOR OF PORTSMOUTH, CORONATION HOMES REPORT OF THE BOARD- 31 MARCH 2024 Code of Governance The Board has taken all of the principles contained within the National Housing Federation Code .of Governance and complies in all respects. Statement of disclosure to auditor (a) so far as the Board members are aware, there is no relevanf audit informalion of which the Charitable Company's auditors are unaware, and (b) they have taken all the steps that they ought to have taken as Board members in order to make themselves aware of any relevant audit information and to establish rhat the Charitable Company's auditors are aware of thai information. Internal Control The Board acknowledge (heir ultimate responsibility for establishing and Maintaining the whole system of internal control that is appropriate to (he various business environments in which it operates and for reviewing effectiveness of ihose controls. The Board recognises that no system of Anternal control can Provide absolute assurance or eliminate all risk, The system of internal control is designed fo manage risk and to provide reasonable assurance thai key business objectives and expected ouicomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational informaiion and ihe safeguarding of the Charilable Company's assets and interests. In meeting its re¥ponsibilities, the Board has adopted a risk-based approach to internal controls which are embedded wiihin the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Charitable Company is exposed. The Board confirms that ihere is an ongoing process for identifying, evaluating and managing signif)cant risks faced by the Charitable Company. This process has been in place throughout the year under review. up to ihe date of ihe annual report, and is regularly reviewd by the Board. Audltors A resolution proposing Ihe re-appointment ot Jones Avens Limited as auditors to the Charilable Company will be put to an Annual General Meeting. By order of the Board . Chalrman 61 Coronation Cottages Northern Parade Portsmouth P02 9LZ MrDSim 30 August 2024 Date
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS We have audited ihe financial statements of The Lord Mayor Of Portsmouth's Coronation Homes set out on pages 9 to 23 for the year ended 31 March 2024. The financial reporling framework Ihat has been applied in their preparation 18 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102. In our opinion the financial statements.. give a Irue and fair view of the state of the Charitable Company's affairs at 31 March 2024 and of its income and expendilure for the year then ended. and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accoTdance with the TequiTements of the Companies Act 2006. Ihe Housing and Regeneration Aci 2008 and the Accounting Direction for private gIStered providers of social housing 2022, Basis for oplnion We conducted our audil in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicglble law. Our responsibilities under those standards are further described in Ihe Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the association in accordance with Ihe ethical requirements Ihat are relevenl to OUT audit of ihe financial siatenienls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other cthical responsibilities in accordance wilh these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate io provide a basis for opinion. Concluslons relatlng to golng concern In auditing the financial s(at¢menls, we have concluded that the board members. use of the going concern basi5 of accouniing in the preparation of the financial slalements 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 Ihe Charitable Company's abslity to continue as a going concern for a period of al least twelve months from when (he flnancial staiernenls a authorised for issue. Our rebponsibilities and the re5ponsibiliLies of ihe bo9 mcmbers wilh respect to going concern are described in the relevant sections of this report. Other Informatlon The board members are responsible for the oiher information. The oiher information comprises the infonnation included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does noi cover the inforniaiion and, except to the extent otherwise explicidy stated in our report. we do aot express any form of assurance conclusion Ihereon. In connection with our audit of Ihe financial stalements, our responsibility is to read the other information and, in doing so, consider whether the other information As materially inconsisienl with the financial statements or our knowledge obtained in the audit or otherwise appears to bc materially misstated. If we identify such material inconsisiencies or apparent material misstatements, we are required to detern)ine whether there is a material misstatement in the financial statements or a material misstaiement of the other informaiion. If. based on the work we have performed. we conclude that there is a material missthiement of this informaiion. we are required 10 report the fact.
THE TSMOUTH, co ATION HOMLS INDEPENDENT AUDITORS, REPORT TO THE MEMBERS We havc nothin8 to report in this regard. Opinions on other matters prescribed by the Companies Acl 2006 In our opinion. based on the work undertaken in the course of our audit.. The informaiion given in fhe direciors, report for the financlal year for which ihe financial statements are prepared is consistent with the financial statements. and the direcior's report has been prepated in accordance wilh applicable legal requirements Matters on which we are required to report by exeeption In light of the knowledge and understanding of the assocation and its environment in the course of the audit, we have not idenlified material mislalemenls in the Board Report. We have nothing to report in respecl of the following matters where the Companies Act 2006 rquires us to report io you if, in our opinlon.. adequale accounling records have not been kepl or returns adequate for our audit have not been received from branches not visiied by us; or Ihe financial 51atcmcnts are not in agreement with ihc accounting record5 and returns: or certain disclosures of board members, remuneration specified by law are nor made: or we have not received all Ihe tnformaiion and explanaiions we require for our audit. Respeetlve responsfibllltles of the board and audltor As explained more fully in the Board, s Re5ponsibilitics Statement sel oul on pagcs l and 2. Ihe board members (who are also the directors of the association for the purposes of company law) are responsible for ihe preparation of the financial siaiemenls and for being sa(isfied that they give a rrue and falr view. and for such iniernal control as (he board members detennine is nerxssary to enable the preparation of the financial statements thai are free from material misstaiement, whether due to fraud or error. In preparing the financial statements, the board members are responsible for assessing ihe association's abilily to coniinue as a going concern, disclosing, as applicable, matters related to going concern and using ihe going concern basis of accounting unless the directors either inlend lo liquidate the associafion or the cease operations, or have no realistic alternaiive bui to do so. Auditor's responslbllities for the audit of the flnancial stalements Our objectives are to obtain reasonable assurance about wheihcr the financial slatemenis as a whole are free from material misstalemenr, whelhcr due lo fraud or error. and to issue an auditor's report thai includes our opinion. Reasonable assurance is a high level of assurance, bui is not a guarantee ihat an audil conducied in accordance wilh ISAS (UK) will always deteci a material misstalemeni when il exisis. Missiaiements can arise from fraud or error and are considered material if, individually or in aggregate. they could reasonabl¢ b¢ expected to influence the econimic decisions of users taken on the basis of these finaiicial statements.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS, REP RT TO THE MEMBERS Identification and assessment of irregularities including fraud Irregularities. including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibllities, ouilined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregulariiies, including fraud is detailed below.. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charitable Company, including, but not Ilmited to, the Companies Act 2006. the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022; we obtained an understanding of the legal and regulatory framework appllcable to the entity and how the entity is complying with that framework by making appropriate enquiries of managemeni as well as considering the internal controls in place io mitigate risks of fraud and non<ompliance with laws and regulations.. we made enquiries of those charged with governance and management concerning: • the risks of fraud. instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documenicd during the period. • we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compllance with laws and regulations. Audlt response to the risk of Irregularlties hncluding fraud Based on the results of our risk assessment, our procedures included. but were not limited to: performing analyucal procedures io identify any unusual or unexpected relationships. • evaluating whether the selection and application of accounling policies by the enlily that may be indicative of fraudulent financial reporting. assessing whether judgemenis and assumptions made in deterniining the accounting estimates set out in note 2 were indicative of potential bias. agreeing financial statement disclosures lo underlying supporting documentation, reading the minutes of meetings of those charged with governance. lesling of journal entries to address the risk of fraud through management override. incorporating an element of unprediclabllity in the selection of the nature, timing, and extent of our audit procedures. Conclusions regarding the risks of Irregularllies including fraud There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is thal we would become aWe of non- compliance. Material mi5Statements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. We considered our audit was capable of dete¢iing Arregularities due io: • the effectiveness of the entity's internal controls; • the nature, timing and extent of audit procedures perforn]ed; and the absence of contradictory evidence. A further description of our responsibilities is available on the Financial Reporting Council's website at: https'.l/www.frc.org.uk/auditorsresponsibililies. This description forms part of our auditor's report.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS Use of our report This report is made solely to the Charitable Company's members. as a body, in accordance with Chapter 3 of Pari 16 of the Companies Acl 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might srate to the association's members Ihose matters we are required to titate to them in an auditor's report and for no othcr purpose. To the fullest exient permiiied by law, we do not accept or assume responslbility to anyone other than the association and th¢ association, s members as a body, for our audit work, for this report, or for the opinions we have fornied. Idltsw Jordan Abbott Bsc ACA For and on behalf of Sumer Audit, Statutory Auditor Pipers House. 4 Dukes Court Bognor Road, Chichester West Sussex, P019 8FX Sumer Audit is a trading name of Sumer Auditco Limited
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Note 2024 2023 TURNOVER 527,020 502,681 Operating costs (409,386) (377,773) OPERATING SURPLUS 117,634 124,908 Interest receivable and other income (9,550) 63,041 SURPLUS FOR THE FINANCIAL YEAR 108,084 187,949 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 108.084 187,949 None of the Charitable Company's activities were acquired or discontinued during the above two financial years. The notes on pages 13 to 23 fonn part of these financial slalemenis. Chalrman impson Board Member Mr R Perry
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES io BALANCE SHEET AS AT 31 MARCH 2024 Note 2024 2023 FIXED ASSETS Tangible fixed assets - Housing Properlies Oiher langlble fixed assets Investment properties Other fixed asset investments 1,985.904 ,959 1,427,900 741,022 2,006.386 10.151 1,477,900 658,333 io 4.163.785 4,152.770 CURRENT ASSETS Debtors Cash at bank and in hand 12 5.829 4.232 405,229 319,145 411.058 323.377 CREDITORS: Amounts falllng due wlthln one year 13 (41.636) (38.932) NET CURRENT ASSETS 369.422 284.445 TOTAL ASSETS LESS CURRENT LIABILITIES 4,533,207 4,437,215 CREDITORS: Amounts falllng due after one year 14 (290.191) (302.283) TOTAL NET ASSETS 4.243.016 4,134,932 RESERVES Income and expenditure ac¢ounl 4,243,016 4,134,932 4,243,016 4,134,932 The financial statements w¢r¢ approved and authoriscd lor issue by the Board on 30 August 2024 and signed on its behalf by Chairman Simpson Board Member Mr R Perry The notes on pages 13 to 23 form part of these financial statements.
THE LORD MAYOR RTSMOUTH'S CORONATION HOMES 11 STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2024 Income & Expenditure reserve Total Balance as at l April 2022 3.946,983 3,946,983 Period ended 31 March 2023: Total Comprehensive income for the year Balance as Ydt 31 Msrth 2023 187,949 187,949 4,134.932 4,134,932 Perlod ended 31 March 2024: Total comprehensive income for the year Balance as at 31 March 2024 108.084 108,084 4 243 016 4 243 016
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 12 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Net tlow from operating activities 17 118,633 138,082 Cash llow from investing actlvlties Income from investmenrs Purchase of tangible fixed assets Purchase of investments 71.881 (54,430) (50.000) 60.595 (48,303) Net cash outflow from investing activities (32,549) 12.292 Cash flow from financing aclivities Cash inflows from new borrowing Repayments of borrowing (374.680) Net cash flow from financing activities (374,680) Net Increasel(decreasel In cash and c&sh equivalents in the period 86,084 (224,306) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 319,145 405,229 543,451 319,145
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 13 NO TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Legal Status The Charitable Company is a Registered Provider of Social Housing and is incorporated under the Companies Act 2006. The Tegistered office is 61 Coronation Coltages, Northern Parade. Portsmouih. Hampshire, P02 9LZ. The Charitable Company constitutes a public benefit entity as defined by FRS 102. Basis of Accountlng The financial stalements are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Retofftmended Practice for Registered Social Housing Providers and comply wilh the Accouniing Direction for Private Registered Providers of Social Housing 2022. The financial siatements are prepared in sierling, which is the functional currency of the Charitable Company. Monetary amounts in Ihese financial siatemenls are rounded lo the nearest £. Turnover Turnover represents rental and service charge income receivable in the year net of rent and service charge losses from voids and amortisation of government grants. Rental income is recognised from the poin( when properties under development reach practlcal completion or otherwise become available for letting. Tangible Fixed Assets and Deprtciation Tangible fixed assels (including social housing properties) are staled at cosl less accumulated depreeialion and accumulated impairment losses. Cost includes cosis directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, development costs. Anlerest charges on loans during the developmeni period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing mainienance costs or resulting in significani ¢xiension of th¢ useful economic life of the property. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost. less estimated residual value of each asset. of each asset on a systematic basis over its expected useful life, as follows.. Freehold land and buildings Straight line over the following lives: Main Fabric and roof structure 50 years Bathrooms and windows 30 years Kitchens 20 years CeT]tral heating system 15 years Leasehold land and building5 As above. or over life of lease if shorter Fixtures and fittings l 0% straighi line Computer equipment 250h straight line
THE LORD MAYOR OF PORT MOUTH'S COR NATION HOMES 14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Tangible Fixed A&sets and Depreciation Icont'd) Freehold land and assets in the cours¢ of construction are not depreciated, The gain or loss arising on (he disposal of an asset is detern)in¢d as the difference between the sale proceeds and the carrying value of the asset and is iecognised in the income and expenditure account. The useful economic lives of all tangible fixed assets are reviewed annually. Impalrment of fixed assets Assets not measured at fair valuc are reviewed for any indication that the assei may be impaiicd at each balance sheei date, The level at which an impairnient is assessed is considered at scheme level. The key indicators considered are,. - A change in demand for property Obsolescence of a property A change in governmeni policy If such indication exists, the recoverable amount 15 estimated and comparcd to (he catrying amount, Where the carrying amounl exceeds its recoverable amounl, an impairment Ioss 15 recognised in expenditure ihrough rhe statemenl of comprehensive income. No such indications were noted and Iherefore no review was considered necessary. Inveslmenl propertles Investment properties have a readily assessable markei value and thus the fair value can be measured reliably wi(houl undue cost or effort. These properties are therefore measured at fair value at each reporting date with changes in fair value recognised An the statement of comprehensive income. Land obtained speculatively is accounted for as investment property. Properties rented to provide social housing are not investment properlies. Government grants Social housing or oih¢r government grants are receiv¢d io finance social housing properties. These grants are recognised at the fair value of the asset received or receivable. Where the assets are accounted for using the cost modcl then the government grant is accounted for using the accruals model, The difference between rhe fair value of the assel and the consideraiion is recognised as a liabiliiy and amor¢ised over the useful economic life of the assct. This aTnortisation is recognised within turnover. Under certain circumstances. primarily following the sale of a property. the grant is repayable or recyclable but this is often restricted to the net proceeds of sale. Where government grants are required to be recycled. a liability is included to recognise this obligation. Leasing and Hire Purchase Rentals payable under operating leases are taken to the income and expenditure account on a stTaight line basis over the lease term.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES Is NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Pensions The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from ihose of the company in an independently administered fund. Conlribulions payable for the year are charged in the income and expenditure accounl. 1.10 Investments Fixed assei investments stated at fair value. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-lerni liquid invesfments with original maiuriues of three monihs or less and bank overdrafis. 1.12 Financial instruments The Charlble Company has elected to apply the provisions of Section 11 'Basic Financial Instrnments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instrnments. Financial assets are recognised in the balance sheet when the Charitable Company becomes party to the contractual provisioThs of the instrument. Financial assets are classified into specialised categories. The classification depends on the nature and purpose of the financial asseis and is determined at the lime of recognilion. Basicfiiioncial assets Basic financial assets, which include rent aearS and other receivables and cash and bank balances, are intially measured at Iransaction price including transaction cosis and are subsequently carried ai amortised c05t using the effective inieTest method, unless the arrangement consiilutes a financing transaction, where the transaction As measured ai (he present value of the future receipts discounied at a market rate of interest. Other financial assets classified as fair value through income and expenditure are measured at fair value. Otherflnancial assets Other financial assets. including investments in equiiy instruments which are noi subsidiaries. associates or joint ventures, are initlally measured at fair value, which is nomally the transaction price. Such assets are subsequently carried at fair value and Ihe changes in fair value are recognised in income and expenditure. except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cosi less Ampaim)ent. Rent arrears, loans and other receivables Ihal have fjxed or detern]inable payments thal are not quoted in an active market are classified as 'loans and receivables,. Loans and Teceivables are measured at amortised cost using the effective interest method, less any impaimienl.
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 16 NOTES TO THE FINANCEAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1.12 Financial instruments (cont'd) Impairment offinancial assets Financial assets. other than those held at fair value through income and expenditure, a assessed for indicators of impairnienl at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the intial recognition of the financial asset. the estimated future cash flows have been affected. The impairment loss is recognised in income and expenditure. Derecognition offinan¢ial assets Flnancial assets are derecognised only when the contraciual rights to the cash flows from the asset expire. or when il Iransfers the fJnan¢ial assei and substaniially all the risks and rewards of ownership to another enlity. Classification offinan¢ial 114bilities Financial liabilities and equity inslruments are classified according to the substance of the conlractual arrangements entered into. An equity instrument is any contract that evidences a residual interesr in the assets of the company after deducting all of lis liabilities. Basicfinanclal liabilities Basic financial liabilities are initially rneasured ai transaciion price, unless the arrangement constitutes a financing iransaction. where the debt instrument is measured at the present value of the fuiure receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through in¢ome and expenditure are measured ai fair value. Otherfinancial lbIlItieS Derivatives. including inlerest rate swaps and forward foreign exchange contracts. are noi basic financial instrumenis. Derivatives are inilially recognised al fair value on the date a derivative contract is entered into and are bubsequently re-measured at their fair value. Changes in the fair value of deiivalives are recognised in income and expenditure in finance costs or finance incorne as appropriate, unless they are included in a hedging arrangement. Derecognilion olfinon¢ial lbIlItIeS Financial liabililies are derecognised when, and only when. the Charitable Company's obligations are discharged, cancelled, or they expire. 1.13 Employee beneflts The costs of short-lerni employee benefits are recognised as a liability and an expensc. unless those costs rquired to bc reColSed as part of th¢ cost of stock or flxed assets. The cos( of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably commiited to lerminale ihe employment of an employee or lo provide iermination benefits,
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 17 NOTE TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1.14 Deferred Taxation The Charitable Company has charitable status and a provision for deferred taxation is not appropriate. 1.15 Going Concern The directors have at the time of approving the financial statements. a reasonable expeciation that the association has adequate resources to continue in operational existence for the foreseeable future. Thus they continue io adopt the going concern basis of accounting in preparing the financial statemenls. 1.16 Judgements and key sources of estSmation uneertafinty In the applicallon of the Charitsble Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabiliiies that are not readily apparent from orher sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevanl. Actual results may differ from these esiimates, The estimates and underlying assumptions are reviewed on an ongoing basis. Revision5 to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affecis boih current and fuluie periods. The estimaies and assumptions which have a significant ri.sk of causAng a material adjustment 10 the carrying amount of assets and liabiliiies are outlined below. Critical judgements The following judgements (apart from those involving estimates) have had (he most significan( effect on amounts recognised in the financial statements. Fair value of investment properties Fair value has been deterniined using (he House Price Index as published by the Land Registry for the Portsmouth area. Properties rented io provide social housing'are noi investment properties. March 2024 March 2023 UK House Price Index for the Portsmouth area 148.50 153.70 Key sources of estlmation uncertainty The esiimates and assumpiions which have a signlficant risk of causlng a material adjustment lo the carrying amounl of assets and liabilities are as follows. Esliniated useful lives The useful life of housing properties and their componenis has been esllmated using the National Housing Federation matrix of property components as a basis.
THE LORD MAYOR OF PORTSMOUTH'S COR NATION HOMES 18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 SOCIAL HOUSING INCOME AND EXPENDITURE 2024 2023 Income from social housing lettings Rents receivable excluding service charges Seivi¢e charges receivable Amortisation of social housing grants 390.892 59.909 360.940 69.503 12.091 12.091 Turnover from social housing lettings Social housing operating cosls 462,892 442,534 (374,303) (340,437) Operating Surplus from social housing aciivities 88.589 102.097 Net surplus from social housing activilies 88.589 102,097 Rent losses from voids in year (deducted above) 794 6.397 Turnover from social housing le(tings Income from market renled properties Income from lettings 462,892 64.128 527.020 442,534 60.147 502.681 Social housing accommodation units in management (including scheme managers) 82 82 OPERATING SURPLUS 2024 2023 The operating surplus is stated after charging:_ Depreciation Loss on disposal of assets Auditors remuneration 68,379 7,725 4,800 68,782 8.944 3.144 INTEREST RECEIVABLE AND OTHER INCOME 2024 2023 Investment gainsl(losses) Increasel(decrease) in fair value Bank interest received Oiher income 32,689 (50.000) 7,753 (4,723) 67.308 448 (9,550) 63,041
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 19 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 EMPLOYEES 2024 2023 Staff costs:. Wage5 and salarie5 Soci21 securily COSIS Pension Costs 70,220 57,713 2,141 1,696 72,36l 59,409 The average week]y number of full time equivalent employees during the year was 2 (2023: 2). BOARD AND KEY MANAGEMENT PERSONNEL REMUNERATION The aggregate amount of emoluments payable 10 the Registered Provider's directors or former directors (including board members where remuneTa(ed) in relation io the period of account is set out below. The Housing Manager is defined as a director according to Part 2 Para 10 of the Accounting Direction for Privaie Regititered Providers of Social Housing 2022. 2024 2023 Emolumenis paid to dlrectors who are executive staff members Emoluments paid to directors who are not executive staff members 29,150 27,231 29,150 27,231 Emoluments payable to the highest paid director, excluding pension contributions 29.150 27,231 TAXATION The Charitable Company As a registered charity with approved charitable status from HM Revenue & Customs and no laxation charge arises.
THE LOIID MAYOR OF PORTSMOUTH'S CORONATION HOMES 20 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 TANGIBLE ASSETS - HOUSING LAND AND BUILDINGS Long Leasehold Held for Letting Freehold Held lor Letting Assets under construction Total Cost At l April 2023 Additions Replacement components Disposals 2.336,279 50,284 402,543 4,146 2.738,822 54,430 (21,984) (2,350) (24,334) Transfers of schemes in progress At 31 March 2024 2.364,578 404,339 2.768.918 Depreclation At l April 2023 608,639 123,797 732,436 Charge for the year On disposals 5,312 61,875 67,187 (2,350) (14,259) (16,609) At 31 March 2024 611,601 171,4l2 783.013 Net Book Value at 31 March 2024 1,752,977 232,927 1,985,904 Net Book Value at 31 March 2023 1.727,640 278,746 2.006,386 INVESTMENT PROPERTIES 2024 2023 At l April 2023 Additions 1.477,900 1,410,592 Disposals Transfers Movement in fair value At 31 March 2024 (50,000) 1,427,900 67,308 1,477,900
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 21 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. INVESTMENTS 2024 2023 Cost or valuation At l April 2023 Additions Gainl(loss) on revaluation of listed investments At 31 March 2024 658,333 50,000 32,689 741.022 663,056 (4,723) 658.333 2024 Falr Value 2023 Fair Value Cost Cost Listed - UK stock exchange 255,000 741.022 205.000 658,333 Investments Fixed asset investment5 are stated at fair value. 11. TANGKBLE ASSETS - OTHER Leasehold Car Park Extension Flxtures, Flttings and Equipment Leasehold Office Aceommodallon Total Cost Al J April 2023 Additions 9,705 5,027 15,390 30,122 Disposals At 31 March 2024 9,705 5,027 15.390 30,122 reciation Ai l April 2023 Charge for the year 4,658 2,417 12.896 897 19.971 I,l92 Eliminated on disposal At 31 March 2024 4,852 2.518 13.793 21,163 Net Book Value at 31 March 2024 4,853 2,509 1,597 8.959 Net Book Value at 31 March 2023 5,047 2,610 2.494 10,151
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES 22 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. DEBTORS Note 2024 2023 Rent and service charges receivable Prepayments and accrued income 3,278 2,551 2,869 1.363 5,829 4,232 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Rent and service charge5 received in advance Deferred grant income Other taxes and social security Other creditors Accruals Bank loans 7.581 12,091 724 1,429 9,810 7,827 12,091 597 10,621 7.796 15 41,636 38,932 14. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR 2024 2023 Deferred grant income Bank Loans 15 290,191 302,283 290,191 302 283 15. DEFERRED INCOME 2024 2023 Social housing government grants:. Ai l April 2023 At 31 March 2024 604,561 604,561 604.561 604.561 Amortisation of social housing government grants:. At l April 2023 Released to income in the year At 31 March 2024 290.187 12,091 302,278 278.096 12.091 290,187 Carrying amount at 31 March 2024 302,283 314.374
THE LORD MAYOR OF PORTSMOUTH'S CORONATION HOMES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. DEFERRED INCOME (CONT'D) 2024 2023 Amounts to be released within one year Amounts (o be released in rnore than one year 12,091 290.192 12.091 302,283 314.374 302.283 16. FINANCIAL INSTRUMENTS 2024 2023 Carrying amount of flnancial assets Measured at fair value ihrough income and expenditure: Fixed Asset listed Investments 741,022 658,333 17. CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Reconclllation ol, operatlng surplus to net cash Infiow from operaling activities Sutplusl(D¢ficit) for the year De¢reasel(Lncrease) in fair value (Gains)ILosses on investments Investment income recognised in income and expenditure Depreciation charges Loss on disposal of assets Changes in debiors Changes in creditors (Decrease) in deferred income 108.084 50,000 (32.689) (71.881) 68.379 7,725 (1,597) 2,704 (12.092) 187,949 (67,308) 4,723 (60.595) 68,782 8,944 4.469 3,209 (12,091) Net cash flow from operating activitfies 118.633 138,082 ANALYSIS OF NET DEBT At 1.4.23 Cash flow At 31.3.24 Net cash Cash at hand and in bank 319,145 86,084 405,229 Total 319,145 86.084 405,229