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 #215 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 cu￿ent 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 COS*t 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