2022-12-31-accounts - Caractacus Housing

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CARACTACUS HOUSING

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

Contents	Page
Reference and administration details	1-2
Report of the Trustees	3-6
Independent examiner's report	7
Statement of financial activities	8
Balance sheet	9
Notes forming part of the financial statements	10-14

CARACTACUS HOUSING REFERENCE AND ADMINISTRATION DETAILS

Registered charity number	1098524
Company number	4629949
Principal address	The Old Coach House
	High Street
	Broughton
	Hampshire
	SO20 8AD
Trustees	Anthony Sloley (Chairman)
	Lucy Bidwell (Treasurer)
	Justin Bidwell
	Kim Anderson
	Melanie Hickman
	Fiona Cousins
	James Piper
Company secretary	Fiona Cousins
Independent examiner	Michelle Hutchings
	Apsleys
	Chartered Accountants
	21 Bampton Street
	Tiverton
	Devon
	EX16 6AA
Bankers	CAF Bank Ltd
	25 Kings Hill Avenue
	Kings Hill
	West Malling
	Kent ME19 4JQ
	Triodos Bank NV
	Brunel House
	11 The Promenade
	Clifton
	Bristol
	BS8 3NN
	Scottish Widows
	67 Morrison Street
	Edinburgh
	EH3 8YJ
	Nationwide Building Society
	Nationwide House
	Pipers Way
	Swindon
	SN38 1NW
	The Cambridge Building Society
	Head Office, PO Box 232
	51 Newmarket Road
	Cambridge
	CB5 8FF

CARACTACUS HOUSING REFERENCE AND ADMINISTRATION DETAILS (CONTINUED)

Bankers

Solicitors

Investment adviser

Unity trust Bank Four Brindleyplace Birmingham B1 2JB Blake Morgan New King’s Court, Tollgate Chandlers Ford, Eastleigh Hampshire SO53 3LG Optimal Planning The Portway Centre Old Sarum Salisbury Wiltshire SP4 6EB

CARACTACUS HOUSING TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2022

The trustees present their trustees report for the year ended 31 December 2022.

OBJECTIVES AND ACTIVITIES

Summary of the objects of the charity set out in its governing document

The provision of low rent housing and/or financial or material assistance for people in need in the administrative areas of West Somerset and Mid-Devon.

Summary of the main activities in relation to these objectives

The charity buys and/or develops houses, subsequently renting them out to financially disadvantaged people with a strong local connection to the area of operation. The rents are charged at rates well below the market level.

An annual sum of £1000 is set aside to provide one-off financial assistance to a local person(s) in extreme financial need.

The trustees have had regard to the Charity Commission guidance on public benefit and believe this is achieved via the charity's objectives and activities.

Investments

The majority of funds go to house purchases. However, an ethical investment fund was set up at the end of 2007 to provide a future income for property maintenance and administrative expenses, in order that the charity can continue to operate its existing stock of houses when the main funding ceases. Sheila Laxman, founder of the charity, donated £3000.00 each month which was invested, the contribution lowered to £2000.00 in February 2013 and ceased in September 2013.

In April 2015 a further £75,000 was invested.

Following the sale of a property in Dulverton an additional £150,000 was invested in October 2018.

The fund value now stands at an effective and dependable level to secure the future of the charity. The investment focuses on growth, with scope to generate income in the future.

Annual reviews of the portfolio investments are conducted. Every five years a review of the risk and Environmental, Social and Governance criteria of the trustees is undertaken or sooner if needed.

ACHIEVEMENTS AND PERFORMANCE

Summary of the main achievements of the charity during the year

The continued rise in building materials and their supply has impacted on maintenance costs and timings. The charity was fortunate to receive generous donations from Sheila Laxman which enabled improvements and repairs to be carried out on all twenty one properties owned. February’s storms lifted roof ridge tiles at a property and damaged guttering and garden fencing at five more, all of which needed to be repaired. Over the year two houses have been externally painted, one has a new garden shed, one had two new doors, one a new night storage heater, two with new consumer units, new showers at three and another new carpets throughout. Render repairs to house and garden walls were done at four, investigations into damp problems resulting in repairs at two. Heat retention improvements included increasing loft insulation and water tank jackets. Larger sums have been spent on a new roof for a house in Dulverton, replacing eight windows for a property in Winsford and new boilers for two others.

Homefinders have carried out routine inspections, assessing the condition of the properties, reporting back and organising general repairs. They continue to collect the rents on the charity’s behalf. Two tenants struggle to pay monthly and payment plans are in place to clear arrears

In the second half of the year tenants were sent details of where they could seek help and guidance if they were struggling with the rise in the cost of living; these included online contacts and local contacts offering face to face meetings. �Routine annual tenant visits were again made across October and November by trustees Fiona and Tony. At these visits the tenants have the opportunity to raise any issues such as repairs and talk about challenges they are facing, for instance schooling, employment, career opportunities, transport, fuel increases, finances and health.

CARACTACUS HOUSING TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

All the properties are tenanted to locals in need. On the regular contact made, tenant feedback certainly shows they value their homes and the positive impact these bring to their lives and are grateful for this help. The provision of these is therefore a significant achievement. A Dulverton resident who has gained experience over the years working on national and local projects across a number of fields including education, housing, the environment and bringing communities together has agreed to become a trustee. This appointment will be made at the January 2023 meeting and the trustees look forward to working alongside him.

Since the amalgamation of the administrative area of West Somerset with Taunton Dean Council to become Somerset West and Taunton Council the trustees needed to re-define the charity’s area of operation described under “the Objects”. An application to reflect this change was submitted to the Charity Commission in November; we await a response.

At the beginning of 2022 domestic fuel costs continued to increase and due to rise still further later in the year. For the second objective of the charity Sheila Laxman considerately donated money in February to offer each tenant household £100 towards their fuel bills. Thirteen tenants have claimed this; it is expected the others will do so when they need to order oil. Furthermore under the second objective, the charity has funded a training course for a lady living in Dulverton in March and also contributed to the Dulverton Food Bank Appeal in November.

FINANCIAL REVIEW

Brief summary of the charity's policy on reserves

The trustees keep funds in a reserve account with CAF Bank for any maintenance work that may arise on the tenanted properties the charity owns. These funds also pay for upgrading newly acquired properties. We have immediate access to this money.

The bulk of unused capital is split between savings accounts held with Triodos Bank, CAF Bank, Scottish Widows Bank, Unity Trust Bank, Nationwide Building Society and The Cambridge Building Society in order to lower risk and where a higher rate of interest is received.

A substantial investment fund is also held, so that when the charity no longer receives donations from the main funder it can still maintain the existing properties and pay for administration costs

Further financial review details

The charity's principal sources of funds

Sheila Laxman, founder of Caractacus Housing, has very generously continued to fund the charity.

How expenditure has supported the key objectives of the charity

The homes provided to people this year have enabled them to remain close to their families and friends, retain their jobs locally and ensure continuity in schooling. In addition, funds have been used to carry out major maintenance work necessary on the portfolio of properties.

Investment policy and objectives including any ethical investment policy adopted

The charity hold a small portfolio of investments in renewable energy and ethical products. Dividends received from these go towards buying more houses or property maintenance. Shares held:- The Ethical Property Company 2980, Triodos Renewable Energy Fund 3000, Traidcraft 500, Café Direct 830.

CARACTACUS HOUSING TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2022

(CONTINUED)

STRUCTURE GOVERNANCE AND MANAGEMENT Type of governing document

Memorandum and Articles of Association incorporated 7 January 2003 and amended 7 June 2003, 7 October 2006 and 18 May 2009.

How the charity is constituted

Private company, limited by guarantee, no share capital.

Trustee selection method

Appointed by existing trustees

Additional governance issues

Policies and procedures adopted for the induction and training of trustees

Prospective trustees are required to submit a CV, visit the area of operation and read the minutes of previous trustees meetings. They are then invited to attend the meetings.

The charity’s organisational structure

Chairman, Treasurer, Secretary plus four other trustees.

Trustees' consideration of major risks and the system and procedures to manage them

Annual buildings and contents insurance on properties owned, Public and Employers Liability insurance and Trustees Indemnity insurance. The trustees split the cash savings between CAF Bank, Triodos Bank, Scottish Widows Bank, Nationwide Building Society, The Cambridge Building Society and Unity Trust Bank.

A local property management company organises general repairs, conducts property inspections and collect the rents. The Treasurer & Secretary are in contact with the staff there daily, and also call the tenants of the 21 properties regularly to see if there are any maintenance issues needing attention and to check on their wellbeing

In February 2021 Re-Build Cost Assessments were conducted and subsequently in March adjustments were made to ensure cover on the properties was adequate.

Other

Members of this charitable company guarantee to contribute £10 towards the cost of dissolution and the liabilities incurred by the charity while the contributor was a member.

CARACTACUS HOUSING TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2022

(CONTINUED)

TRUSTEES RESPONSIBILITIES STATEMENT

The trustees (who are also directors of Caractacus Housing for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP (FRS102)
make judgements and 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 charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared taking advantage of the small companies exemption of Section 415A of the Companies Act 2006.

This report was approved by the Board on ……………………………………and signed on their behalf by:

…………………………………………..

Fiona Cousins Company Secretary

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CARACTACUS HOUSING

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2022 which are set out on pages 8 to 14.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities

I have no concerns 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.

Michelle Hutchings 21 Bampton Street Apsleys Tiverton Chartered Accountants Devon EX16 6AA Date:

CARACTACUS HOUSING STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2022

65,143 132,465 8,978 Unrestricted funds	65,143 132,465 8,978 Unrestricted funds	65,143 132,465 8,978 Total funds 2022	65,000 123,250 7,194 Total funds 2021

	206,586	206,586	195,444
	5,322 230,117	5,322 230,117	5,535 170,009
	235,439	235,439	175,544
	(28,853)	(28,853)	19,900
	(130,335) 12,890	(130,335) 12,890	70,264 7,716
	(146,298)	(146,298)	97,880
	-	-	-
	(146,298)	(146,298)	97,880
4,101,173		4,101,173	4,003,293
3,954,875		3,954,875	4,101,173

The notes on pages 10 to14 form part of these financial statements

CARACTACUS HOUSING BALANCE SHEET 31 DECEMBER 2022

£ £ 3,036,805 703,483 3,740,288 17,348 257,487 274,835 263,587 3,954,875 3,033,374 96,412 825,089 3,954,875 49,000 4,003,875 2022 11,248	£ £ 3,097,937 818,519 3,916,456 19,261 224,769 244,030 233,717 4,101,173 3,095,017 226,746 779,410 4,101,173 49,000 2021 4,150,173 10,313	£ £ 3,097,937 818,519 3,916,456 19,261 224,769 244,030 233,717 4,101,173 3,095,017 226,746 779,410 4,101,173 49,000 2021 4,150,173 10,313
		3,916,456 233,717
274,835 11,248	244,030 10,313

		49,000 4,150,173
		4,101,173
		3,095,017 226,746 779,410
		4,101,173

For the year ending 31 December 2022 the company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.

Trustees' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
The trustees acknowledge their responsibilities for complying with the requirements of the act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the trustees on…………………….

and signed on their behalf by:

……………………………….

LUCY BIDWELL Treasurer

Company registration number 4629949 The notes on pages 10 to 14 form part of the financial statements

CARACTACUS HOUSING NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

1. Summary of significant accounting policies

(a) General information and basis of preparation

Caractacus Housing is a private company limited by guarantee and does not have a share capital. The company is a registered charity in England within the United Kingdom . In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

General funds are unrestricted funds which are available for use at the discretion of the trustees 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 trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

CARACTACUS HOUSING NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

(c) Income recognition (continued)

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds; and
Expenditure on charitable activities;

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

(e) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land Nil Freehold buildings Straight line over 50 years Computer equipment Straight line over 3 years Fixtures, fittings and equipment 20% reducing balance

(f) Investments

Investments are recognised initially at fair value which is normally the transaction price including transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

(g) Debtors and creditors receivable and payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(h) Cash

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts.

(i) Taxation

The charitable company is exempt from corporation tax on its charitable activities.

(j) Going concern

Following the global impact of 'COVID-19', at the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

CARACTACUS HOUSING NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

2. Donations Ms S M S Laxman Other Gift aid 3. Investment income Current account interest Reserve account interest Bonus Saver 2nd objective Savings account interest Dividends Gift aid interest Other interest	2022 £ 52,100 18 13,025	2021 £ 52,000 - 13,000
	65,143	65,000
	2022 £ - 390 - 507 7,658 40 383	2021 £ - 9 - 336 6,849 - -
	8,978	7,194

4. Resources expended

Property maintenance Utility bills Insurance Professional fees Depreciation Objective 2 Secretary's fees Secretary's expenses Trustees remuneration Trustees expenses Accountancy and independent examination Independent examination Brokers fees Management fees Postage, printing & stationery Computer expenses Bank charges Sundry expenses		Raising funds 5,322	Raising funds 5,322		Charitable activities 98,139 - 5,578 100 61,132 3,795 21,696 532 21,696 184 1,614 1,076 14,081 113 144 80 157		2022 Total 98,139 - 5,578 100 61,132 3,795 21,696 532 21,696 184 1,614 1,076 5,322 14,081 113 144 80 157		2021 Total 40,765 49 4,903 3,623 61,421 859 20,868 444 20,868 289 1,662 1,108 5,535 12,840 202 - 97 11

			5,322		230,117		235,439		175,544

CARACTACUS HOUSING NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022

5. Tangible fixed assets

£ 3,771,051 - Freehold property	£ 37,904 - - Fixtures, fittings and equipment	£ 3,808,955 - - Total
3,771,051	37,904	3,808,955
678,910 59,973 -	32,108 1,159 -	711,018 61,132 -
738,883	33,267	772,150
3,032,168	4,637	3,036,805
3,092,141	5,796	3,097,937
	2022 £ 1,603 623 15,122	Unlisted £ 818,519 43,128 (40,719) (130,335) 12,890
		703,483
		607,071
		2021 £ 3,329 604 15,328
	17,348	19,261
	2022 £ 949 2,700 7,599	2021 £ 11 2,650 7,652
	11,248	10,313

CARACTACUS HOUSING

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2022

9.

Creditors : Amounts falling due after one year Mortgage	2022 £ 49,000	2021 £ 49,000

The above mortgage is repayable if the charity disposes of 20 Amory Road, Dulverton. This property includes Thornton, Barns Close North, Dulverton. The mortgage is secured on these properties and the combined net book value of these properties as at 31 December 2022 was £193,630.

10. Designated funds

The income funds include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes

Freehold Property CAF 2nd objective		At 31.12.21 £ 3,092,141 2,876	New designation £ 2,125		Disposed £		Utilised £ 59,973 3,795		At 31.12.22 £ 3,032,168 1,206
		3,095,017	2,125		-		63,768		3,033,374

The freehold property designated fund represents the net book value of freehold property, including that under construction, on the basis that should the properties be sold, proceeds equal to at least the net book value will be reinvested in freehold property for the benefit of the primary objective of the charity, namely letting of property to financially disadvantaged people with a strong local connection to the area of operation.

The second objective designated fund represents funds set aside to provide one-off financial assistance to local people in extreme financial need.

11. Fair value reserve

Fair value reserve
Investments Trustees remuneration and expenses Trustees expenses Trustees remuneration (Lucy Bidwell in capacity as treasurer and Fiona Cousins in capacity as secretary)	2021 £ 226,746		Transfer £ (130,334)	2022 £ 96,412
			2022 £ 43,392 716	2021 £ 41,736 733

12. Trustees remuneration and expenses

Trustees remuneration was paid under the powers in the Memorandum and Articles of Association. Mileage and subsistence was re-imbursed to 3 trustees.

The charity does not have any employees hence no employee earned more than £60,000 during the year

13. Related party transactions

During the year the company paid £14,081 (2021: £12,592) to Homefinders (Devon & Somerset) Ltd to carry out regular inspections of the tenanted houses. Included in creditors is £3,738 (2021: £3,338) owed to Homefinders (Devon & Somerset) Ltd. During the year the company also gifted three gift vouchers worth in total £Nil (2021: £90) to Homefinders (Devon & Somerset) Ltd as a Christmas gift. Trustee Anthony Sloley has a personal connection with this company in that his daughter Julia Burnett is the director and controlling shareholder.

During the year the company paid £5,756 (2021: £4,180) to Finch Solutions Ltd to carry out maintenance work on various properties. Secretary Fiona Cousins has a personal connection with this company in that that she is the director and shareholder of the company.