Company No. 04238548 Charity No. 1096639 QUOTHQUAN HOMES (A Company Limited by Guarantee) UNAUDITED FINANCIAL STATEMENTS YEAR ENDED 31 December 2023 www.quothquanhomes.org.uk Independent Examiner: Peter Saltiel Church & Charity Accounts Service Ltd QUOTHQUAN HOMES (A Company Limitsd by Guarantse) Contents Year Ended 31st December 2023 Page Company Information Report of the Trustees (Including Directors, Reporc) Independent Examiner's Report Statement of Financial Activities and Income and Expenditure Account Balance Sheet Notes to the Financial Statements 7-11 QUOTHQUAN HOMES (A Company Limited by Guarantee) COMPANY INFORMATION Charlty Name: Quothquan Homes Reglstered Charity Number: 1096639 (England & Wales) Company Number. 04238548 (England & Wales) Governlng Document: Memorandum and Articles of Association incorporated on 21st June 2001 Trustees: J A Gilmour E J Robinson S J Robinson Secretary: S J Robinson Principal Office & Correspondence Address: Dale Fann Worcester Lane Sutton Coldfield West Midlands B75 SPR Bankers: Bardays Bank Lei￿ster LE87 2BB Independent Examlner: Peter Saltiel Church & Charity Accounts Service Ltd 7 Planchadeau 23460 Saint-Pierre-Bellevue France QUOTHQUAN HOMES (A Company Llmited by Guarantee) Report of the Trustees (includln Dlrectors, Re ort 2023 The trustees, who are directors of the company for the purposes of cornpany law, present their report and financial statements together with the independent examinerfs report for the period ended 31 December 2023. The Charty was established by memorandum and articles of association on 2141 June 2001 under company number 04238548 and was recognised as a charity on 2181 March 2003 under charity nurnber 1096639. The principal office is Dale Farm, Worcester Lane, Sutton Coldfield, B75 SPR. Object, Actlvltlos and Publlc Beneflt The Objects of the Charity are to advance the Christian faith and, a8 an expression of Christian witness love and concern, to: provlda accommodation and associated amenities, seNic8S, 8dvic8 or 8SSlStance for persons in n8cessitous circumstances or In chantable need,. prov￿8 and/orsupport facilities to impmve the conditions of1rf8 for the local community, relieve the aged, the poor, the sick 8nd those in conditions of need, hardship and distress,. 8nd provide and/or support tralnlng and p8Storal care. The trustees have taken account of the Charity Commission's general guidance relating to publlc benefit when reviewing the Charity's achievement8 and perfonnance. To date the Charity has only met housing need. To thls end th8 Charity owns and manage8 Rented Social Housing not required under the Section 106 Agreement with the City of Birmingham on the housing development at Harvest Fields in Sutton Coldfield. At the year end, the Charity was renting out twenty propertle8 to thos8 who, before they moved to Harvest Fields, were considered to be in housing need. Achlev8ments, Performance and Publlc Boneflt The trustees consider that the Object has been achieved satisfactorily durlng the year by providing good quallty, affordable accommodation for their tenants. The provision of a home from Quothquan Homes has dramatically improved the quality of life for most tenants, families; many of whom came from sub-standard or inappropriate sized properties. In many instances it has also released a property back into the rented housing market. They consider that this has satisfied the public benefit test. Flnancial Revlew & Reserves Policy The results of the Charlty for the year ended 31st December 2023 are set out in the financial statements. Income for the financial year was £123,692 (2022: £109,508). Expenditure for the financial year was £74,430 (2022: £53,558). The unde8ignated reserves carried fO￿ard are £791,294 which is considered satisfactory. However, the uninvested portion of these is only £126,696 (the free reserves). It was always the expectation of the trustees that, having paid interest and other costs, there would be very few free reserves for many years. Given the financial support available from the Quothquan Trust, this Charity can operate successfully with only small non4esignated reserves. The trustees actively monitor risks and seek to minimise, manage andlor eliminate them where possible and practicable. QUOTHQUAN HOMES (A Company Limited by Guarantee) Report of the Trustees (including Directors, Report) 2023 Trustees The trustees listed on page 1 (J A Gilmour, E J Robinson and S J Robinson) have held office throughout the year. Trustees are appointed by the members who are the trustees. Details of transactions with connected charities and related parties are set out in note 13. Responsibilities of the Trustees The trustees are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that period. In preparing these financial statements, the trustees are required to:. select suitable accounting policies and then apply them consistently., make judgements and accounting estimates that are reasonable and prudent" state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue operating. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. Approved by the TrusteeslDirectors on 9th September 2024 and signed by their order. S J Robinson Secretary INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEESIDIRECTORSIMEMBERS OF QUOTHQUAN HOMES FOR THE YEAR ENDED 31ST DECEMBER 2023 Charlty No: 1096639 Company No: 4238548 I report on the accounts of Quothquan Homes for the year ended 31 st De￿mber 2023 which are set out on pages 5 to 11. Responslbilities and ba8ls of report As the charity's trustees of the Company (who are also the directors of the company for the purposes of company law), you are ￿ponSIble for the preparation of the accounts in accordance with Ihe requirements of the Companies Act 2006 ('the 2006 Act.). Having satisfied myself that the accounts of the Company are not requirad to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charltles Act 2011 ("the 2011 Acf). In carying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act. Independent examlnerf3 Statement I have completed my examination. I confimi that no material matters have come to my attention which gives me cause to believe that: accounting records were not kept in accordance with section 386 of the Companies Act 2006; or the accounts do not accord with such records; or the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a 'tru8 and fair, view which is not a matter considered as part of an independent examination; or the account8 have not been prepared in accordance with the Charities SORP (FRS102). I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Peter Saltiel Church & Charity Accounts Service Ltd 7 Planchadeau 23460 Saint-Pierre-Bellevue France Dated 15th September 2024 QUOTHQUAN HOMES (A Company Llmlted by Guarantee) Statement of Financial Activities and Summary Income and Expenditure Account Year Ended 31st December 2023 Total Total Unrestricted Unrestricted Funds Funds 2023 2022 Notes Income: Charitable activities: Rent receivable Inlerest receivable 123.014 678 109.423 85 123.692 109,508 Expendlture: Charitable activities (74,430) (53,558) Net Income for the year 49.262 55,950 Net movement in funds 49,262 55,950 Total funds brought forward 742,032 686,082 Total funds carried forward 791,294 742,032 The Statement of Financial Activities includes all gains and losses recognised in the year. All the above results are derived from continuing actrrfities. The notes on pages 7 to 11 fom) part of these financial ststements. QUOTHQUAN HOMES (A Company Limited by Guarantee) Balance Sheet At 31st December 2023 Notes 2023 2022 Fixed Assets Tangible assets 1,765,284 1,785,910 Current Assets Debtors Cash at bank 2,163 130,438 445 136,794 132,601 137,239 Creditors: Amounts falling due within one year 10 (5,905) (9,758) Net Current Assets 126,696 127,481 Total Assets less Current Liabilities 1,891,980 1,913,391 Creditors: Amounts falling due after more than one year 13 (1,106,591) (1,171,359) Net Assets 791,294 742,032 Represented by Unrestricted funds 791,294 742,032 The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 3151 December 2023. the Company was entitled to exemption from audit under section 477 of the Companies Act 2006, and members have not required the company to obtain an audit of Its accounts for the year in question in accordance with section 476 of the Acl. The accounts have been examined by an independent examiner whose report appears on page 4. The trustees acknowledge their responsibilities for complying with the requirements of the Acl with respect to accounting records and the preparation of accounts. The Notes on pages 7 to 10 form an integral part of these accounts. These accounts, which have been prepared In accordance with the provisions in the Companies Act 2006 relating to small companies. were approved by the trustees l Directors on 9th September 2024 and signed on their behalf by.. S J Robinson - Trustee Company No. 04238548 QUOTHQUAN HOMES (A Company Llmited by Guarantee) Notes to the Flnanclal Statements Year Ended 31st December 2023 Basls of Preparatlon Basls of accountlng These accounts have been prepared under the historical cost convention with items rewgnised at cost or transaction value unless othemise stated in the relevant note(s) to these accounts, accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Companies House 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). The accounts present a true and falr view and no changes in the basls of accounting have been made during the year. There have also been no changes to the previous accounts during the financial year. The charity is a public benefit entity as defined by FRS 102. Golng Concern The trustees are of a view that there are suffident reserves to secure the immediate future of the Trust for the next 12 to 18 months and on that basis the charity is a going concern. Accountlng Pollcle8 2.1 Fund Accountlng - Unrestrlctsd funds These are donations, rental and other income received or generated for the objects of the charity without specific purpose and are available a8 general funds. The charity has no restricted funds. 2.2 Income Rental Income Is induded in the Statement of Financial Actlvities (SOFA) when the charity is entitled to the resource; that is more likely than not that the trustees will receive the resources and that the monetary value can be measured with sufficient reliability. Income from interest is included in the accounts when receipt is probable and the amount receivable can be measured reliably. 2.3 Expendlture Liabilities are recognised Whe￿ it is more likely than nol that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. Expenditure on charitable activities is incurred on directly undertaking the activities which further the chanty's objectives, as well as any associated support costs. Govemance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. Rent prepaid is ￿Orded as deferred income as current liabilities. Provisions for liabilities a￿ measured on recognition at its historlcal cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. QUOTHQUAN HOMES (A Company Limited by Guarantse) Notes to the Financial Ststements (confd) Year Ended 31st December 2023 Fixed Assets Purchased fixed assets are capitalised at the price paid (plus fees etc) even rf the open market value could be or was higher at the time of acquisition. Depreciation Dep￿cIatiOn is calculated to write off from the date of first occupation the cost of buildings at 2% per annum straight line and carpets and fumiture at 12'A % per annum straight line. Current Assets Current assets are cash at bank with immediate access and debtors. Current Liabilities Current liabilities are obligations to pay for services related to the properties within one year. Non4urrent Liabilities Non-current liabilities relate to the loan from Quothquan Trust and related interest. This was used to purchase properties as reported in Note 13. There is no fixed term for the loan and the charity maintains its obligation to repay the loan. Judgements and Estlmations The trustees have not made any significant judgements in the process of applying the accounting policies and there are no areas of estimation Un￿rtaInty that have a significant risk of causing a material adjusbnent to the carrying amounts of assets and liabilities. Cash Flow Exemption The trustees have not produced a staternent of cash flows, as the Charity is within the small company and charity thresholds. Income The income and result for the year are attributed to the principal activty as set out in the report of the trustees. The whole of the income totalling £123,692 (2022: £109,508) was derived from the UK. Expendlture on charitable activities 2023 2022 Interest payable Depreciation of tangible assets Property expenses Governance- Independent Examiner Governance- Companies House Contribution towards salary paid by HFH Bookkeeping & admin charge from SQCT Bank charges 8,327 20,626 40,227 635 13 10,255 20,726 16,677 485 13 800 4,500 102 4.600 102 74,430 53,558 QUOTHQUAN HOMES (A Company Llmltsd by Guarantee) Notes to the Financlal Statements (convd) Year Ended 31 st December 2023 Trustees Neither of the trustees has receNed any remuneration from the Charity for services rendered nor been reimbursed any expenses. Details of transactions with connected charities and related parties are set out in note 11 below. Staff Costs 2023 2022 Contribution towards salary paid by HFH 800 The Housing Manager was employed and remunerated by Harvest Fields Homes. No employee was paid more than £60,000 per annum. Taxatlon The company 18 a registered charity and, as all its income will be applied for charitable purposes, no liability to tax arises in respect of the year ended 31 st December 2023 {2022: nil). Tanglble Flxed Assets Freehold Furnlture, property carpets etc 2023 Totsl 2022 Total Cost At 111 January Additionsldisposals in the year 2,128.520 27,075 2,155,595 2,155,595 At 318t Decembar 2,128,520 27,075 2,155,595 2,155,595 Depreclation At 1•t January Charge for the year 342,610 20,626 27,075 369,685 20,626 348,959 20,726 At 31st December 363.236 27,075 390,311 369,685 Net Book Value At 31st December 2023 1.766,284 1.765.284 1,785,910 At 31 st December 2022 1,785.910 1,785,910 1,806,636 QUOTHQUAN HOMES (A Company Limited by Guarantee) Notes to the Flnancial Statements (cont'd) Year Ended 31 st December 2023 Debtors 2023 2022 Rental debtors Prepayments 1,871 292 233 212 2,163 445 10. Credltorn falllng due wlthln twelve months 2023 2022 Rents prepakl Accruals 714 6,191 2,773 6,985 6,906 9,758 11. Utlllsatlon of Funds 2023 Total Funds 2022 Total Funds Opening balance Net incoming resources before transfers 742,032 49,262 686,082 55,950 Closing balances 791,294 742,032 Represented by: Tangible fixed assets Net current assets Long term loans 1,766,284 126,696 (1,100,686) 1,785,910 127,481 (1,171,359) 791,294 742,032 12. Share Capital The Charity is limited by guarantee and has no share capital. Each rnember of the Charlty has undertaken to contribute a sum, not exceeding £1, if It Is wound up whilst that person is a member or within one year after ceasing to be a member. 10 QUOTHQUAN HOMES (A Company Llmited by Guarantee) Notes to the Flnancial Statements (cont'd) Year Ended 31st December 2023 13. Connected Chariti88 and Related Party Transactions Quothquan Trust, which is connected by virtue of common trustees, loaned this Charty all the funds to acquire four apartments in previous years at 3.70Apa (considered a commercial rate of interest for that purpose). They also loaned the funds to purchase houses in previous years at 70/opa. Accordingly it loaned a maximum of £1,171,359 (2022: £1,174,104) in the year and at the year-end £1,100,686 (2022: £1,171,359) was outstanding. It charged interest of £8,327 (2022: £10,255). There is also a contingent liability of up to £2,949,432 (2022: £2,682,454) to pay additional interest to it that is only payable out of any surplus on disposal of the properties. The Second Quothquan Charitable Trust, which is another charity connected in the same way, provided this Charity with book-keeping and administration services for which it charged £4,500 (2022: £4,500).