## THE ROUS CHARITY Trustee's Report and Financial Statements ## 31 December 2022 Registered Charity Number 1068581 THE ROUS CHARITY TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |Contents|Page| |---|---| |Officers and professional advisers|1| |Trustee's report|2| |Independent auditor's report|6| |Statement of financial activities|9| |Statement of financial position|10| |Notes to the financial statements|11| THE ROUS CHARITY TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## REGISTERED CHARITY NUMBER: 1068581 ## TRUSTEE Racing Homes (a company limited by guarantee) ## DIRECTORS OF RACING HOMES Simon Hope (Chair) William Barlow Craig Glasper Patrick Russell ## CHIEF EXECUTIVE Dawn Goodfellow ## REGISTERED OFFICE Robin McAlpine House 20B Park Lane Newmarket Suffolk CB8 8QD ## BANKERS Barclays Bank PLC High Street Newmarket Suffolk CB8 8NH ## SOLICITORS Taylor Vinters Merlin Place Milton Road Cambridge CB4 0DP ## INVESTMENT MANAGER Troy Asset Management Limited Brookfield House 44 Davies Street London W1K 5JA ## AUDITORS Price Bailey LLP Tennyson House Cambridge Business Park Cambridge CB4 0WZ 1 THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 ## STRUCTURE, GOVERNANCE AND MANAGEMENT The Rous Charity was formed on 24 September 1997 by a Charity Commissioners' Scheme, which combined the operations of the Rous Memorial Fund and the Rous Memorial and Almshouse Charity. The sole Trustee is Racing Homes (Charity Commission registration number 1122961), its trustees act as trustees of the charity. ## Governance The Charity is registered under the Charities Act 2011 (Charity Commission registration number 1068581). Racing Homes is itself a subsidiary undertaking of Racing Welfare (Charity Commission registration number 1084042). Day-to-day management of the Rous Charity is delegated to Racing Homes Head of Housing, overseen by the Chief Executive. The Jockey Club is the charity's ultimate controlling party by virtue of being Racing Welfare's sole member, and provides HR, IT and capital projects support to the Racing Welfare Group. ## Recruitment and appointment of trustees The sole trustee of the charity is Racing Homes, whose own trustees act as trustees of the charity. A full description of Racing Homes recruitment process can be found in its financial statements. ## Principal Risks and Uncertainties The principal risks are identified as those with the highest likelihood of occurrence together with the highest potential impact. Also included are those risks that score highly and are fundamentally key to what we do and how we operate. Set out in the table below are the principal risks that are specific to The charity. The trustee acknowledges that there are further, more generic risks, which are included on the charity and group risk register and may score highly but these risks are not listed here due to their generic nature or because they, by nature, are not within our power to control or mitigate e.g. changes in the economy. **----- Start of picture text -----**
Risk description Risk mitigation
Failure to protect vulnerable and All staff are appropriately vetted in accordance with law
young people: and current regulations. The charity adopts Racing
Welfare's safeguarding policy which is regularly reviewed
by dedicated safeguarding staff and is the recipient of the
Failure may result in adverse publicity and
SafeCic Safe Award recognising excellence in
risk to the charity's repuation as well as
safeguarding standards. Safeguarding training is
possible litigation.
undertaken by all staff. DBS checks are carried out on all
trustees. All line managers undergo Safer Recruitment
training
Non-compliance with electrical, gas Fire risk assessments are conducted at all schemes along
and fire safety requirements: with weekly alarm tests, along with staff regularly checking
communal areas for good housekeeping. Annual PAT
Failure to comply with safety requirements testing conducted along with five year fixed-wire testing.
could lead to serious harm to tenants and Contracts in place for electrical and gas safety. Central
property housing management software triggers compliance
reminders.
**----- End of picture text -----**
2 THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 ## Principal Risks and Uncertainties (continued) **----- Start of picture text -----**
Risk description Risk mitigation
Stock deterioration Racing Homes has committed to providing housing of a
high standard and is in the process of refurbishing older
Tenant and staff injury sustained from units, as well as recently completing a full refurbishment
deterioration of housing stock as well as of a block of young persons accommodation. A stock
the reputation risk associated with sub- condition survey will be undertaken in 2022 from which an
standard housing. updated long-term maintenance programme will produced
by a dedicated in-house property manager.
**----- End of picture text -----**
The Trustee has introduced a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence and identifying means of mitigating the risks. The risk register is regularly reviewed by Racing Welfare Senior Management and annually by Racing Welfare Trustees. ## OBJECTS AND ACTIVITIES The Charity exists to provide almshouses for the benefit of needy or aged persons employed or formerly employed or otherwise engaged in or in connection with the horse racing and thoroughbred industry or their dependants. The Trustee confirms that it has had regard to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. ## CHARITY GOVERNANCE CODE The Charity, in line with Racing Welfare, has fully adopted the Charity Governance code and is actively working on all seven pillars. Full details can be found in the consolidated financial statements of Racing Welfare. ## ACHIEVEMENTS AND PERFORMANCE The Charity continued to provide housing to its beneficiaries in 2022. The Charity owns eight bungalows at Rous Court, Newmarket, and five modern bungalows in Hamilton Road, Newmarket leased from The Jockey Club. These properties are managed by Racing Homes and provide housing and facilities at an affordable rent for pensioners from the horseracing industry. 3 THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 ## FINANCIAL REVIEW In 2022, the Charity received income of £68,436 (2021: £67,682) and expended some £85,076 (2021: £62,981). The increase in expenditure was due to additional staff costs recharged and increased maintenance costs. The Charity made fair value losses on investments of £44,033 (2021: £48,262 fair value gains) and has maintained a sound financial position with unrestricted funds at 31 December 2022 of £569,008 (2021: £609,306). ## Reserves policy The Trustee has reviewed the reserves of the Charity. This review encompassed the requirement to meet fixed commitments and the likelihood of receiving voluntary donations. The Charity aims to maintain general reserves equivalent to at least 6 months forward expenditure, estimated at £40,000. At 31 December 2022 general reserves were £459,051 (2021: £455,316). The trustee is of the opinion that these funds are sufficient to sustain the Charity’s ongoing activities. Excess reserves will be kept under review by the trustee whilst assessing opportunities as they arise. The trustee maintained a designated extraordinary repairs fund to provide for any unexpected repairs and improvements. At 31 December 2022, the value of extraordinary repair fund was £40,000 (2021: £40,000). Under the terms of the 1997 Charity Commissioner's scheme, the land and buildings formerly belonging to the Rous Memorial and Almshouses charity should be held in the Rous Charity on the same terms as it was in the Rous Memorial and Almshouses charity. The properties have been classified as permanent endowments with the fund value representing the net book value of the land and buildings (2022: £828,449; 2021: £848,824). Free reserves at 31 December 2022 were £181,596 (2021: £177,861), calculated as total unrestricted funds excluding those invested in shares and securities. ## Investment policy Historically the Charity's investment portfolio has been represented by a single investments in a common funds, the Trojan Income Fund ('S' Income). During 2020 the investment was split with a proportion now invested in the Trojan Fund ('S' Income). The aim of the investment policy is to provide a balance between income and capital growth, measured on a total returns basis. ## PLANS FOR FUTURE PERIODS The Charity intends to sustain its current level of activities. No activities are undertaken by the Charity or by any person on behalf of the Charity for the purpose of fundraising, and in particular no professional fundraiser or commercial participator have carried on any such activities. Neither the Charity nor any person acting on behalf of the Charity was subject to an undertaking to be bound by any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising, in respect of activities on behalf of the Charity. In light of this, there was no failure to comply with a scheme or fundraising standard, and there was no requirement for any monitoring of activities carried on by any person on behalf of the Charity for the purpose of fundraising. No complaints have been received by the Charity or a person acting on its behalf about activities by the Charity or by a person on behalf of the Charity in connection with fundraising. Whilst the trustees are aware and supportive of the need to protect vulnerable people and other members of the public from any fundraising activities that potentially puts people at risk, as the Charity does not undertake any fundraising, the trustees are confident that no one was put at risk from inappropriate fundraising activities of the Charity. 4 THE ROUS CHARITY TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 ## STATEMENT OF TRUSTEE’S RESPONSIBILITIES The Trustee is responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing the financial statements the Trustee is required to: - ●select suitable accounting policies and then apply them consistently; - ●observe the methods and principles in the charities SORP 2019 (FRS 102); - ●make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. It is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## AUDITORS Price Bailey LLP were appointed as auditors during the year and have expressed their willingness to continue in office. A resolution to reappoint them will be proposed at the forthcoming Annual General Meeting. The trustees report was approved on 22 May 2023 and signed on its behalf: Simon Hope (Chair of Racing Homes) 5 THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 ## Opinion We have audited the financial statements of The Rous Charity (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, 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 Financial Reporting Standard 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: - give a true and fair view of the state of the charity’s affairs as at 31 December 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## 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 trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report. ## Other information The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are 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. 6 THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 ## Matters on which we are required to report by exception 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: - the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or - the charity has not kept adequate accounting records; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## Responsibilities of the Trustees As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are 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 trustees determine 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 trustees are 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 trustees either intend to liquidate the charity or 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 regulations made under section 154 of that Act. 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. 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the charity and how it operates and considered the risk of the charity not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the charity this included data protection and financial reporting. The risks were discussed with the audit team and we remained alert to any indications of noncompliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: - Management override: We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of a sample of journal entries and other adjustments for appropriateness. - We reviewed minutes of Trustee Board meetings, correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation and made enquiries of management including those responsible for the key regulations. We have reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission. - Assessing management bias in relation to the accounting policies adopted and in determining significant accounting estimates, including the valuation of investments and the depreciation policies of fixed assets. 7 THE ROUS CHARITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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. ## Use of report This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed. Price Bailey LLP Chartered Accountant and Statutory Auditor Tennyson House Cambridge Business Park Cambridge CB4 0WZ Date 19 September 2023 Price Bailey LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006. 8 ## THE ROUS CHARITY STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2022 **----- Start of picture text -----**
Note Unrestricted Endowment Total Total
funds funds 2022 2021
£ £ £ £
(note 14)
INCOME FROM:
Investments 2 6,456 - 6,456 6,769
Charitable activities 61,980 - 61,980 60,913
TOTAL INCOME 68,436 - 68,436 67,682
EXPENDITURE ON:
Charitable activities 64,701 20,375 85,076 62,981
TOTAL EXPENDITURE 3 64,701 20,375 85,076 62,981
NET (EXPENDITURE)/INCOME BEFORE GAINS
AND LOSSES ON INVESTMENTS 3,735 (20,375) (16,640) 4,701
Net (losses)/gains on investments 7 (44,033) - (44,033) 48,262
NET (EXPENDITURE)/INCOME FOR THE YEAR
AND NET MOVEMENT IN FUNDS (40,298) (20,375) (60,673) 52,963
Reconciliation of funds:
Balances brought forward 1 January 10 609,306 848,824 1,458,130 1,405,167
Balances carried forward 31 December 10 569,008 828,449 1,397,457 1,458,130
**----- End of picture text -----**
The notes on pages 11 to 18 form part of these financial statements. 9 ## THE ROUS CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 **----- Start of picture text -----**
Note 2022 2021
£ £
FIXED ASSETS
Tangible assets 6 828,449 848,824
Investments 7 387,412 431,445
1,215,861 1,280,269
CURRENT ASSETS
Debtors 8 3,162 3,573
Cash at bank and in hand 208,568 204,363
211,730 207,936
LIABILITIES
Creditors: amounts falling due within one year 9 (30,134) (30,075)
NET CURRENT ASSETS 181,596 177,861
NET ASSETS 1,397,457 1,458,130
THE FUNDS OF THE CHARITY:
Unrestricted funds: 10
General fund 459,051 455,316
Revaluation Reserve 69,957 113,990
Designated funds 40,000 40,000
569,008 609,306
Endowment funds 828,449 848,824
TOTAL CHARITY FUNDS 11 1,397,457 1,458,130
**----- End of picture text -----**
The financial statements on pages 11 to 18 of The Rous Charity were approved by the Trustee and authorised for issue on 22 May 2023 and signed on its behalf by: Simon Hope Chair of Racing Homes The notes on pages 11 to 18 form part of these financial statements. 10 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 1. Accounting policies ## Basis of preparation The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling, which is the charity's funcational currency and rounded to the nearest £1. The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements of the Charity are consolidated in the financial statements of Racing Welfare. The consolidated financial statements of Racing Welfare are available from its registered office, whose address is the same as the Charity’s. ## Going concern The directors have identified no material uncertainties and have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future, a period of at least 12 months from the date of approval of the financial statements, and the charity is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. ## Debtors Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. ## Creditors Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## Income recognition Income from charitable activities represents rents and service charges receivable. All rental and service charge income is from social housing lettings. Investment income is included in the accounts when due. Investment gains and losses include any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year. ## Expenditure recognition Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. ## Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustee for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. The endowment funds were established when the Rous Memorial and Almshouses charity and the Rous Memorial Fund were combined to for the Rous Charity and represents the net book value of the properties. 11 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 1. Accounting policies (continued) ## Freehold and long leasehold almshouses Depreciation is provided in equal annual instalments over the term of the lease or estimated lives of the assets at the rate of 2% per annum. Freehold land is not depreciated. ## Freehold and leasehold improvements Depreciation is provided on fixtures and fittings at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Fixtures and fittings range from 10 years to 20 years ## Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the reporting date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. ## Realised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value (purchase date if later). Realised and unrealised gains and losses are combined in the Statement of Financial Activities. ## Judgements and estimates The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for income and expenditure during the period. However, the nature of the estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the amounts recognised in the financial statements: ## Tangible fixed assets: Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal value. |2. INVESTMENT INCOME
Interest receivable
Dividends receivable from investments and unit trusts|2022
£
175
6,281
6,456|2021
£
12
6,757
6,769| |---|---|---| 12 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 3. CHARITABLE ACTIVITIES |CHARITABLE ACTIVITIES
Housing
Support Cost Allocation
Overheads and administration costs
Governance costs
Housing
Support Cost Allocation
Overheads and administration costs
Governance costs
Analysis of social housing costs
Management costs
Service charges
Maintenance of properties
Governance costs
Bad debts
Depreciation of properties
Depreciation of fixtures and fittings|Activities
undertaken
directly
£
78,681
78,681
Activities
undertaken
directly
£
56,617
56,617|Support
costs
£
6,395
6,395
Support
costs
£
6,364
6,364
2022
£
28,497
2,551
31,258
2,395
-
13,880
6,495
85,076|Total
2022
£
85,076
85,076
£
4,000
2,395
6,395
Total
2021
£
62,981
62,981
£
4,000
2,236
6,236
2021
£
19,069
5,283
15,541
2,364
-
13,880
6,844
62,981| |---|---|---|---| The Charity does not employ staff directly. Staff are employed by Racing Homes, the charity’s corporate trustee. Direct housing staff costs are apportioned to the Charity on the basis of properties managed. In 2022, the cost of housing staff time allocated to the Charity was £22,232 (2021: £14,380). 13 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 4. TRUSTEE'S REMUNERATION No remuneration or out of pocket expenses were received by the trustee during the year (2021: £nil). All staff are employed by Racing Homes and Racing Welfare, with costs allocated to the charity on the basis of the proportion of units owned. Therefore no employee or key management personnel remuneration was directly incurred. ## 5. GOVERNANCE The auditors' remuneration constituted audit fees of £1,800 (2021: £1,700). ## 6. TANGIBLE FIXED ASSETS |Cost and deemed cost
At 1 January 2022
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021|Long
Freehold
leasehold
Freehold
Leasehold
almshouses
almshouses
improvements Improvements
£
£
£
£
546,000
330,000
103,564
11,044
546,000
330,000
103,564
11,044
58,240
52,800
25,288
5,456
7,280
6,600
5,582
913
65,520
59,400
30,870
6,369
480,480
270,600
72,694
4,675
487,760
277,200
78,276
5,588|Totals
a
£
990,608
990,608
141,784
20,375
162,159
828,449
848,824| |---|---|---| Freehold almshouses includes freehold land of £182,000 (2021: £182,000) that is not depreciated. |7. FIXED ASSET INVESTMENT
Listed investments:
Market Value at 1 January
Net investment (losses) / gains
Market value at 31 December
Historical cost at 31 December
Listed investments are represented by:
Investment trusts and unit trusts|2022
£
431,445
(44,033)
387,412
317,455
387,412|2021
£
383,183
48,262
431,445
317,455
431,445| |---|---|---| 14 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 **----- Start of picture text -----**
8. DEBTORS 2022 2021
£ £
Prepayments and accrued income 3,162 3,573
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021
£ £
-
Owed to Racing Welfare 1,500
Owed to Racing Homes 15,966 26,888
Accruals and deferred income 12,668 3,187
30,134 30,075
10. STATEMENT OF FUNDS
At 1 At 31
January Investments December
2022 Income Expenditure Gains Transfers 2022
£ £ £ £ £ £
Unrestricted funds
General reserve 455,316 68,436 (64,701) - - 459,051
Investment fund 113,990 - - (44,033) - 69,957
Designated funds
- - - -
Extraordinary Repair Fund 40,000 40,000
Total unrestricted funds 609,306 68,436 (64,701) (44,033) - 569,008
Endowment funds 848,824 - (20,375) - - 828,449
-
1,458,130 68,436 (85,076) (44,033) 1,397,457
At 1 At 31
January Investments December
2021 Income Expenditure Gains Transfers 2021
£ £ £ £ £ £
Unrestricted funds
General reserve 413,891 67,682 (42,257) - 16,000 455,316
Investment fund 81,728 - - 48,262 (16,000) 113,990
Designated funds
- - - -
Extraordinary Repair Fund 40,000 40,000
Total unrestricted funds 535,619 67,682 (42,257) 48,262 - 609,306
Endowment funds 869,548 - (20,724) - - 848,824
Total unrestricted funds 1,405,167 67,682 (62,981) 48,262 - 1,458,130
**----- End of picture text -----**
15 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 10. STATEMENT OF FUNDS (continued) The general reserve represents the free funds of the Charity which are not designated for particular purposes, and are available to be spent for any of the purposes of the Charity. The Investment Fund represents the net accumulated fair value gains on investments which would only be available for use if the investments were sold. The extraordinary repair funds sets aside funds for unexpected maintenance costs. The endowment funds were established when the Rous Memorial and Almshouses and the Rous Memorial Fund were combined to form the Rous Charity and represents the net book value of the properties. In 2021 a transfer of £16,000 was made from the Investment Fund to the General reserve to correct an historical error on the Investment Fund. ## 11. ANALYSIS OF NET ASSETS BETWEEN FUNDS |As at 31 December 2022
Tangible fixed assets
Investments
Current assets
Current liabilities
As at 31 December 2021
Tangible fixed assets
Investments
Current assets
Current liabilities|£
-
-
-
848,824
828,449
Endowment
£
848,824
-
-
-
(30,134)
40,000
Endowment
£
828,449
-
-
£
Total
Unrestricted
2022
Designated
Total
Designated
2021
£
£
Unrestricted
-
848,824
-
431,445
431,445
-
40,000
569,306
1,458,130
40,000
167,936
207,936
-
(30,075)
(30,075)
40,000
1,397,457
529,008
(30,134)
387,412
387,412
171,730
211,730
£
-
-
828,449
£| |---|---| 16 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 12. CONNECTED CHARITIES (continued) The Rous Charity has its trustee and administration in common with the following charities: - ●Racing Welfare - ●Racing Homes The following amounts were due (to)/from connected charities as at 31 December 2022: |Racing Welfare
Racing Homes|£
(1,500)
(15,966)
2022|£
-
(26,888)
2021| |---|---|---| Racing Homes manages the properties on behalf of The Rous Charity. During the year Racing Homes collected rents amounting to £64,404 (2021: £60,913) on behalf of the charity and paid shared costs attributable to the charity of £48,407 (2021: £38,447), including staff costs of £22,232 (2021: £14,380). During the year the charity received £Nil (2021: £47,000) from Racing Homes in settlement of the intercharity loan account. During the year £4,000 (2021: £4,000) in respect of management and administration overheads were allocated to the Charity by Racing Homes. Five bugalows in Newmarket are held on a 50 year lease from Jockey Club Estates. There is no annual charge. During the year Racing Welfare paid costs of £1,500 attributable to Rous Charity (2021: £Nil). ## Parent Company Racing Homes, Charity Number 1122961, Company Registration 06489067 whose address is the same as the Rous Charity and whose charitable objects and activities are the provision of affordable housing to those in need. The parent company exercises control through its corporate trusteeship and its accounts can be obtained from Racing Welfare. ## Ultimate Parent Company Racing Welfare, Charity Number 1084042, Company registration Number 04116279, whose address is the same as the Rous Charity and whose charitable objectives are the relief of poverty, sickness, injury and the advancement of education to those employed or formally employed in the racing industry. The Ultimate Parent exercises control through its corporate trusteeship; its accounts can be obtained from Racing Welfare, 20b Park Lane, Newmarket Suffolk, CB8 8QD. ## Ultimate Controlling Party The Ultimate Controlling Party is The Jockey Club, Company Registration Number RC000287, governed by Royal Charter, whose address is 75 High Holborn, London, WC1V 6LS by virtue of being the sole member of Racing Welfare. ## 13. FINANCIAL INSTRUMENTS 2022 2021 £ £ 387,412 431,445 Equity instruments measured at fair value 17 THE ROUS CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 14. STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR THE YEAR ENDED 31 DECEMBER 2021 |INCOME FROM:
Investments
Charitable activities
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE GAINS
AND LOSSES ON INVESTMENTS
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE) FOR THE YEAR
AND NET MOVEMENT IN FUNDS
Reconciliation of funds:
Balances brought forward 1 January
Balances carried forward 31 December|Unrestricted
funds
£
6,769
60,913
67,682
42,257
42,257
25,425
48,262
73,687
535,619
609,306|Endowment
funds
£
-
-
-
20,724
20,724
(20,724)
-
(20,724)
869,548
848,824|Total
2021
£
6,769
60,913
67,682
62,981
62,981
4,701
48,262
52,963
1,405,167
1,458,130| |---|---|---|---| 18