Company Re2i8trAtion No. 6801953 Registered Social Landlord No. A2948 Charlty No. 1127772 {Englalld and Wales) THE SKINNERS, ALMSHOUSE CHARITY DIRECTORS, REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2024 THE SKINNERS, ALMSHOUSE CHARITY CONfENTS Page Directors, report and accounts Ind¢pend¢n¢ audito￿, report 7-10 Statement of financial activities Balanee sheet 12 Statement of cash flows 13 Notes to the accounts 14-29 THE SKIIYNERS, ALMSHOUSE CHARITY DIRECTORS, REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2024 BOARD OF DIRECTORS Mi&s M C St￿l¢brass Dr C Anderson Mr B Beor-Rob¢rts Ms Anna Bwnner Cmdr James Cohen Mrs K J Coleman Mrs L L￿ge Mr A Millard Mr B Peat MrEDLPrice DrCMRoe Mr H A C Tidbury (Chairn)an) (ap￿inted 2.11.23) BANKERS AND PROFESSIONAL ADVISERS Bankers Roya] Bank of Scotland PLC l Hanlman Boulevard Manchester M33 AQ IDve51ment man*gerJ Cazenove Capital l London Wall Place London BC2Y SAU CCLA 85 Queen Sireet London EC4V 4ET Sarasin & Partners 100 St Paul's Churchyurd London EC4M 8BU SurYeyor& alld property advisers Daniel Watney LLP 165 Fle￿ Street London EC4A 2DW Gerdld Eve LLP 46 Bow Lane London EC4M 9DL Solieitors Farrer & Co LLP 66 Lin¢oln's Inn Fields London WC2A 3LH Independent Auditors Saff¢ry LLP 71 Qu¢¢n Victoria Sireet London EC4V 4BE IDsuf4D¢e brokers Marsh Brokers Limited 1-5 Perrymouni Road Haywards Heath West Su&8ex RH16 3SY Page I THE SKtNNERS' ALMSHOUSE CHARITY DIRECTORSY REPORT AND AccouNfs (continued) FOR THE YEAR EI¥DED 30 JUI¥E 2024 tNrRODUCTION AI¥D HISTORY Skinners, almshouses have been in existence since th¢ mid-sixteenih ¢eniW. havingbeen founded by the Skinn¢TS' Company? one of the Great Twelve Livery Companies. FITSI I￿￿ted in Great St Helen's in ihe City of London, Ihey have developed in size and scope. thanks to the g¢n¢rosity of Skinners, Company benefactors as well as the prudent husbandry of successive generations of Tr￿ste¢S. The almshouses have re•located twi¢¢ their history. from the City to Mile End and th¢nce to Palmers Green in North London. The Paim¢rs Green sile has been completely rebuilt tI￿ee tim¢s, most ￿entlY in 2007, and is now named Skinners Court, while Percy Bilton CourL a sheltered housing s¢hem¢, was added in Hounslow in West London in the early 1980's and substantially modernised in 2018. CONSTITUTION The Skinners. Almshouse Charity ('Mhe Charity,) which was incorporated &8 a company by Companies House in January 2009 (company number 6801953) is a registered charity (Charity number 1127772) and is governed by a scheme of the Charity Commission dated 12 Octokr 2009. The Skinners. Companv is sole meTnber of the incorw)rdled Charity. The endowment of the housing operation is held by two subsidiary charities-th¢ SkinneTS' Almshouse Foundation (Charity number 210774-1) and the Percy Bilton Fund (Charity number 210774-8). These are knth unincorporated charities whose sole trustee is th¢ Skinners, Almshouse Charity and are ac¢ounl¢d for h¢re under a uniting dir¢ction from th¢ Charity Commission. The princip&l activity of the Skinners, Almshouse Foundation is to retain the Skinners. Almshouse Charity's assets in trust forthe benefil of current and futtwe residents. The Percy Bilton Fund is applied ex¢lusively for the benefit of maintaining Percy Bilton Court and for the benefit of its residents. The Charity is a Registered Social Landlord (no A2948) with The Regulator of Social Housin& The Charity's address and registered otTice 15 Skitmers, Hall, 8 Dowbat¢ Hill, London, EC4R 2SP. ORIECTIVES AND ACTIVITIES The Charity's object is the relief of w>verty by th¢ provision of almshouse accommodation to ￿r$0￿5 in nee(L Il may appoint residents in the following order of preference- Freemen and Freewomen of th¢ Sktnners, Company and their widows and widowers; Dependents or fom]er dependents of the said Freemen and Freewomen. Any oth¢r su¢h person in need. Currently all residents are members of the thtrd ¢at¢gory above and none are members of The Skinn¢rs' Company. Enfield and Hounslow IIKal authoriti¢s hav¢ nomination rights to fill 750/0 and 50Yfj of th¢ flats respectively with the balan¢¢ being identified by the Charity through various older person support agencies. b) The Charity's housing c¢)mprises iwo schemes. Percy Bilton Court provides 38 one-bedroom sheltered housing flats in Hounslow, W¢si London. Skinn¢rs Court is an Extra Care scheme in Paltners ￿en. North London and off¢rs 38 on¢-bedroom and 12 two-bedroom flats and an array of cotllmunai fa¢iliti¢s for frailer older people. The Charity provides a full housing management service wilh care and support services being available thro￿ external proTriders. It aims to support older people to be as independent &$ possible through ihe provision of accessible accommodation. GOVERNANCE AND MANAGEMENT The Charity is governed by ils Board of Directors. The Skinners, Company, as sole member of the Charity, may ¢lect or remove Directots. Page 2 THE SKINNERS, ALMSHOUSE CHARrrY DIREcfoRS' REPORT AND AccouNfs (c(Jntinued) FOR THE YEAR ENDED 30 JUNE 2024 Key management personnel and remuDeratlon The Skinner5' Company Clerk leads on the strategic and operational activities of the Charity uttder the guidance of its Board of Director3. The Directors give their time freely and received no remuneration in the year. Those working on behalf of tbe Charity are all employees of the skit￿ers, Company (the sole member) whose employment costs aTe chaTged to the Charity under a paymaster aTrJmgement. The Charity does not have any direct employees. Recrnitment and training of Direetors Dire¢tors are appointed by the Skinners, Company and shall hold office &$ specified by the Company on appointment. Dir¢¢tors hold office for a terni of four years but eligible for r¢-appoinlm¢nt following the expiration of one tenn. As part of the selection process, due consideration is given to the individual's personal and professional knowledge and the experience they bring to the Board. New Directors are inducted into the workings of the Charity via an organised programme. ory8n1￿1IoDaA management The Directors. as Trusl¢¢s of the Charity, are legally responsible for the overall man8gement and control of the Charity. They meet a minimum of four times per year to deterniine and monitor the Charity's perforniance and strategic direction. S￿￿coMMittees of the Board of Directors include Proity Finkmce. The Finance Sub- Committee reviews th¢ Charity's framework for financial a¢countsbility and its tasks in¢lude ddail¢d s¢nrtiny of charges to residents before they are presented to the BOo￿, as well a5 ensuring the Charity complies with relevant rinancial regulations and good practice. This includes an amiual meeting with the auditor prior lo considering statulory accounts. Daniel Walney LLP, Chartered Surveyors provide planned maintenance and surveying services for both schemes. Oversight and moniloring ofthe maintenance works is delegaled to the Property Sulpcommittee which reports to the Board of Directors. The Charity has an Almsbouse Charity Director who is responsible for the daY-l￿daY management of the Charity and its two Almshouses. The Dir¢¢tor and additional support services, such as administratio￿ secretarial, finance, HR and IT, are supplied by the Skinners, Company. The Board has deleg&ted the management of the Charity's investment p)rtfolio to the Investment Committee of the Skinners, Company. The Investment Committee, which currently includes the Chatrn]an of the Finan¢e SulFCommittee, reports on wfornw¢e and provides advi¢¢ and recommendations to the Finan¢¢ Sub-committee and the Board. appropriale. ACHIEVEMENfs AND PERFORIWCE The Charity incurred a small operating loss but reExJrted an overall gain after investment movements (realised and unr¢alisedl. The Charity is proud to have continued to meet the costs of full time Estate managers at each of the hemes and Almshouse support staff based at SkiDners' Hall. This is despite the trend across the sectorofreducing staff presence on site. Income from lice￿ fees increased slighily in the year and voids were at nornial opernting levels for the type of schemes. New trustees undergo a thorough induction programtne. All Irustees have the opportunity to attend training seminars throU￿oUt the year and can access inforniation and advice via the Charity'5 membership of the Almshouse Association. Newsletters from each scheme are circulated to tru51ees on a quarterly basis and resident feedback and consultstion is used to inforni tr￿stee decision making. Social events during the year which facilitsie engagement between SkiM￿rs and residents have been developed. lo￿/• of residents who completed a resident P¢r¢¢ption Survey in May 2024 said that they were satisfied wlth the quatity of their home. The CIMrity has contracted Daniel Watney LLP io d¢v¢lop plans for refvrbishment and essential maintenance works al both of its alMsho￿$es. Based on resident feedback relating to poor air quality in communal corridors at Skinners Court, the ¢harity has installed a new ventilationlair purification system. 11 has upgrad¢d existing emergen¢y lighting al the scheme with a rn0￿ cost-effective eco-friendly lighting system. The schemes, Commullal bathroom along with the &qre provtder's office and Test room area have also been refurbished and significantly upgraded. Page 3 THE SKINNERS, ALMSHOUSE CHARrrY DIRECTORS, REPORT AND Accouiyfs (continued) FOR THE YEAR ENDED 30 JUNE 2024 Finan¢i*l review The Directors present their r¢port and accounts for the ended 30 Jun¢ 2024. These have been prepared on going cotscern basis in a¢¢ordan¢¢ with the accounting policies Set out in note I to th¢ ae¢ounts. In preparing these accounts the Dire¢loJ3 have complied with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland, (FRS 102} and Ih¢ second edition of the St&iemeni of Recommended Practice for Charities. The funds ￿der the Directors, control cotLSiSt of.. Unrestricted fU￿dS.. The fimds availabl¢ to th¢ Directors for the general purwtses of the Charity. fL￿d$. The Almshouse Development Fun(L A 5urn is set aside atmually, if surpllls permits, in olller to fillmj fviure Tedevelopment of the properties. Repairs Reserves. This is the net ac¢umulation ofTeserY¢s designated for future repairs and replacements at each of th¢ proiknies and is detsiled in not¢ 21. Restricted fw)ds: The Percy Billon Fun(L Accumulation of net in¢om¢ relating to this Scheme. Enth)wment funts.. The pemianent endowment of the Charity. The Statement of Fina]Kial A¢liviti¢s demonstrates that the obje¢tives have been m¢t and is summarised below. 2024 2023 Available ineome for the y￿r Income from lethngs Grants and donations Inv¢stm¢nt income 1.170.491 1,107,972 763 244,348 278,253 1.448,744 (1.435.773) 203 500 1639,273 {190,529) 1,353.083 (1.015.835) (179771 1,195.606 157.477 Housing costs Support costs Net {outgolnWncoming resvur¢¢s for the yegr before transfers and g•i The Directors confirm that the assets of ihe various funds ate available and adequat¢ lo fulfil the rel¢van¢ obligations. V4lue for money The Regulator of Social HO￿SIng requires all registered providers to calculate value for money {VtM) metrics. The results oye as follows: Reillvestmeni: Invesmi¢nt in housing supply as a percentage of totsl housing property held.. nil % (2023 nilyo). New Housing Supply: New housing delivered as a percentage of housing stock h¢ld'. nilYr* {2023 nilQ/o). G¢aring: Ptoportion of borrowing in relation to housing assels.. 6.60/0 (2023 6.61J/y). EBITDA: Earnillg5 before int¢r¢st. depreclation and amortisation: interest ¢ov¢r 9 times (2023 4 times). Headline SIKial Housing cost: £16.l32 per unil12023 £11,676 pei UDit). Opernling Margin Social Housing Lettings.. demonstrates the sU￿1￿S compared to tumover: _22 0/• (2023 8.30/0). Operating Margin Overall: Operating surplus ¢ompared to overall turnover: _18ts/0 (2023 nil•/ts). Return on Capital Employed: Owdting surplus compared to cumt net assets: _32Yo (2023 nil¥o). Page 4 THE SKIiYNERS' ALMSHOUSE CHARITY DIREcfoRS' REPORT AND ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUNE 2024 Futur¢ plons The charity will continue to meet its aims and objectives by supporting elderly people in poor health and with limited resources to access high quality housing in a community setting. W¢ aim to work with our residents to ensure that ibey have ac¢e55 to services and activities that will contribute towards enhancing their quajily of life and reducing their social isolation. The DirectO￿rrru5tees will continue regularly to monitor and ￿VIeW ihe risks facing the charity and ensure that appropriate plans and policies are in place. A detailed planned maintenance programme for both schemes started in Autunhn 2023 and continues into th¢ new financial year. Major building works planned for the coming year includ¢ the installation of repl￿ement ba]¢onies and internal redecoration at SkinDers Court and the replacement windows at P¢r¢y Bilton Cowl. RESERVES POLICY The Director3 monitor review the resetves poli¢y annually. Th¢ Charity's Sheltered and extra care housing operates in a highly regulated environment that ¢ontro15, in particular, the charges which may ￿ l¢vi¢d in respect of residents. Th¢se Charges represent the entire housing income. The most substantial costs to be met from this income ar¢ th¢ upkeep of buildings and payment of staff costs via the paymaster arrangement. The Charity maintains a repairs reserve to which annual transfers are made for maintenance, ¢ycli¢al and extraordinary repairs of the housing properties, as recommended by th¢ Almshouse Association. These reserves will be expended over the ternis of the maintenance and repairs schedules. The Charity also maintains a redevelopment reserve, whi¢h is the Charity's ¢ontributTon to the redevelopment of housing properties in the firfure and is not regarded as distributable re5erYes. The current reserves policy is that £35,000 be transf¢rr¢d from revenue reserves to this ￿nd each year subject to affordability. The Percy Bilton Fund supports only the sheltered housing at Percy Bilton Court. Hounslow. The financial position of Percy Bilton Court is stable and can be supported by revenue reserves if necessary. The Directors are currently r¢viewing ihe reseryes policy in the light of the introduction of the Chartties Act 2022 and the retention of a firni of Ch8rt¢red Surveyors, Daniel Watney LLP, lo advise the Board on the upkeep of the buildings. The und¢sign8ted reserves of £1,260.736 (2023.'£1,112,588) are used io support the operating &Ciivities of the Charity. FUNDRAISING Th¢ Tn￿1¢¢$ tske their responsibilities uthler the Charities (Protection and Social Investment) Act 2016 serioLL51y and have considered the implications on their Thndraising activities. The charity undertake5 specific fundraising activity to support th¢ development of its work but is mainly focused on receiving such donations from gr3ml giving trusts and Sktnn¢rs as opposed lo the general public. During the year to 30 June 2024, the charity received no complaints in relation to fundraising. INVESTMENT POLICY AND PERFORLKANCE On 14 January 2014 the Board passed a resolution under s104(B) of th¢ Charities Art 2011 to adopt a totsl retury) policy for the pennanently ¢ndow¢d portion of th¢ managed portfolio, having ¢al¢ulated the unapplied tothl return on those assets at Ihat dale of £142.766. All rdurns Ib)th ￿PItal and income) on these investments subsequent to lh¢ resolution 8re credited to the Endowment Fund. The Board, in consultation with the Skinners, Company Investment Committee. has decided to transfer 2.50/0 of the asset value to unrestricted funds for application. and this 1$ r¢view¢d annually. The managed iknfolio As divided lkneen Ca7Enove Capitsl, Sarasin and CCLA. The Charitys invesirnent objeclive is to maintain the real value of the endowment and io achieve a lotal return of RPI + 3.5ty/• p.a. over lh¢ mediwn to long terni. The performance in the year of the matLqged portfolio, together with th¢ property unit trust portfolio, was closely monitored by the Skinners, Company Investment Commlttee, whi¢h r¢ports r¢gularly lo the Board. The portfolio is invested for the long lerni and the Investsneni Committee does not place undue weight on a sitigle year's I￿rfornIan£e. The overall long terni perforn)ance remains satisfactory in a period of uncertain financia], ¢¢onomi¢ and political ouilook for global markets. Page 5 THE SKINNERS, ALMSHOUSE CHARITY DIRECTORS, REPORT AND ACCOUNTS (c4)ntinued) FOR THE YEAR ENDED 30 JUNE 2024 RISK MANAGEMENT The Directors have sought lo identify the major risks to which the Charity is exw5ed and have establish¢d systems to ensure that these risks ar¢ r¢view¢d and ar¢ minimised as far as possible. The Board closely monitot3 its risks under health and safety legislation. As a Registered Housing Provider trustees ensure that the Charity complies with new r¢gulatory standards as s¢t out in the Social Housing Regulation ACL which come into effect from l April 2024. FollowiDg strong repres¢ntations made by the AlmslKpuse Association on behalf of its members. t￿ Minisier of Stale for Work & Pensions announced that almshouse chariti&8 that are regislered providetB will be exemo from th¢ proposal lo reduce Target Rent by 10/0 per annum over four years, and has deferred the transfer io LHA rates. The Board will Continue to monitor housing wjlicy developments very closely atml. in parti¢ular, the impact of any income restrictions that may be placed on almshouses in th¢ future. PUBLIC BENEFIT The Dire¢iors have complied with the duty in section 4 of the Charities Act 2011 to have due regard to all guidance published by the Charity Commission. STATEMENT OF DIRECTORS* RESPONSIBILITIES The Directors (who are also the Trustees of The Skinn¢rs' Almshouse Charity for the purposes of company law) are responsible for preparing the Directors, Report and the financial statemenis in accordance with applicable law and United Kingdom Auditing Stsndards (Untted Kingdom Generally A¢¢eMed Accounting Prdctice). Company law requires the Directors to pr¢pare financial slatements for each financial year, which give a trne and fair view of the state of affairs of the charitable company and of the incoming resources and application of resource4 including the income and expenditure. of the charitable company for that periiyj. In preparing thes¢ financial statements the directors are required to.. select suitable accounting FK)licies then apply them consistently. obsetve the methods and principles of the Charities. SORP. 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 within the fllwicial statements. prepare the financial stalemenis on the going concern basis unless it is inappropriate to pr¢sume that the charity will continue in business. The Directors ar¢ r¢S￿nSIble for keeping proper accounting records that disclose with re&sonable a￿u￿¢Y at any tim¢ihe fuwn¢ial posiiion of the chaTilable cotnpany and enable them to ensurethatthe financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable ¢ompany and hence for tsking reasonable steps for the prevention and detection of fraud and other irr¢gularilies. Insofar as the Dir¢¢tors are awar¢ there is no relevant audit infonnation of which the charitabl¢ ¢ompany'5 auditor is Unawa￿ the Dir¢¢tors have taken all 5tep5 that they ought to have taken to make themselves aware of any relevant audit infornlation and to establish that tbe auditOT is aware of that information. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by the Board on 14 November 2024 and signed on behalf of th¢ DI￿tOrS by ary Stallebrass Page 6 THE SKtNNERS' ALMSHOUSE CHARfTY INDEPENDENT AUDITORS, REPORT TO THE DIREcfoRS FOR THE YEAR ENDED 30 JUNE 2024 OpittioD We have audited the financial statements of Th¢ Skinn¢rs' Almshouse Charity for the year ended 30 June 2024 which comprise the statement of financial a¢tivities, the balance sheet, the cash flow statement and notes to the financial statements, including signtficant ac¢ounting polici¢s. Th¢ financial r¢r￿rtIng framework that has been applied in their preparation is appli¢able law and United Kingdom A¢counting Siandards. including Financial Reporting Standard 102, the Financiat Reporting Standard applicable in the UK and Republtc of JTeland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the chariiable company'5 State of affairs &s at 30 June 2024 and of its incoming resources and application of resources, including its income and expenditure. for the year th¢n ended; have been proEerly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared ID accordance with the Companies Act 2006. Bggts for oplnion We conducted our audit in accordance with Iniernational Stsndards on Auditing (iiK) (ISAS (UK)) and applicable law. Our Teswjnsibilities under those standards are further described in the Auditor's responsibiliti¢s for the audit of the financial statements section of our report. We are independent of th¢ charitable company in accordance with the ethical requiTements that are relevant to our audit of the financial statements in the UK, in¢luding the FRC'S Ethical Standard, and we have fulfill¢d our other ethi￿1 r¢sponsibilities in ac¢ordan¢e with these requirements. We believe that the audit evidence we have obtained is sufficient and approptiate to provide a basis for our opinion. Conclusion5 relating to goin¥ concern In auditing the financiai statements, we have concluded that the Directors, us¢ of th¢ going con¢¢rn basis of accounting in ihe preparation of the financial statements is appropriate. Based on ihe work we have ￿f0M)ed. we have not identified any material uncertsinties relating to events or conditions that. individually or collectively, may c&8t significant doubl on the ¢haritsble company's ability to continue as a going con¢¢rn for a p¢riod of at l¢asttwelve months from when the fmancial statement5 are authorised for issue. Our responsibilities and the responsibilities of the Dir¢¢tors with respect to going concern are described in the relevant sections of this report. Other information The Directors are responsible for the other inforniation. Th¢ other infomiation comprises the infornlation included in the annual report, other than the finan¢ial statem¢nls and our auditor's report thereon. Our opinion on the financial statements does not cover the other inforniation and, except to the extent othen¥ise expliciily stated in our repor( we do not express any forn of assurance conclusion thereon. Our responsibility is lo read the other inforniation and, in doing so, consider whether the other infomiation is materially incon51Stent with the financia] statements or our knowledg¢ obtained in the Course of the audit or otherwise appears to be materially misstst¢d. If w¢ id¢ntify su¢h material inconsisten¢ies or apparent materlal misststement& we ar¢ r¢quir¢d io detemiine whether this gives rise lo a material misslatement in the financial statements themselves. If. based on the work we have perforniel we conclude that there is a material misstatement of this other inforniation we are required to report th￿ fact. Page 7 THE SKINNERS, ALMSHOUSE CHARrrY ]IYDEPENDEiYf AUDrroRS' REPORT TO THE DIRECTORS FOR THE YEAR ENDED 30 JUNE 2024 We have nothing to reFKbrt in this regard. Opinions on other matters prescrlb¢d by the COM￿nIeS A¢t 21K16 In our Opinio￿ bas¢d on the work und¢rtaken in th¢ course of the audit: the information given in the Directors Report for the fuwicial year for which the financial statements are prepared is consistent with the financial statements. and the Direetors. Report has been prepared in accordance with applicable legal ￿quirements. Matters on wbich we are required to report by exception In the light of the knowledge and understanding of ¢haritabl¢ ￿MpanY and its environrnent obtained in th¢ course of the aud&t, we have not identified mat¢rial misstatem¢nls in the Dire¢tors' Report. We have nothing to report in respect of the following matters where the Comptsnies Act 2(K)6 requires us to r¢port to you if. in our opinion.. adequate accounting records have not b¢¢n kept. or retwns adequate for our audit have noi been r¢c¢iv¢d from bran¢h¢s not visit¢d by u$. or the financial statements are not in agreement with the accounting record8 and rdwns. or certain disclosures of Directors, Temuneration specified by law are not made; or we have not received all the it]forniation ond explanaiions we require for our audit. or the trU￿e¢S were not entitled to prepare the financial S￿￿eMentS in accordance with the small companies regime and to take advantage of ihe small companies exemption in pr¢paring ihe Directors, Report. Responsibilities of Directors As explained more fully in the Directors, Responsibilities Statement sel out on page 6, the Directors (who are also Trustees of the charitable company for the purposes of ¢ompany law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control &s the Directors d¢t¢rn)ine is n¢c¢ss8ry lo ¢nable the preparation of fjnftncial statements that are free from mafrrial issiatement, whether due lo fraud or error. In preparing the financial statements, the Director3 are reswnsible for assessing the ¢harAtable ¢ompany's ability to conlinue as a going concern, disclosin& &$ applicable. matters related to going Concern and usfftng the going concern b&8is of accounting unless the DAr￿torS eith¢r intend to liquidate the chariiable company or to cease operations. or have no realtstic a]iernativ¢ lo do so. Auditor's reSPODsibilities for the audit of the fillanci41 $ts¢ements We have been appointed &8 auditors under the Companies Act 2006 and report in accordance withregulations made under A¢t. Our obj¢¢liv¢s ar¢ lo obtsin r¢&sonable assurance about whether tFLe financial statements as a whole are free frotn material misstal¢menL whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Re&sonable assurance is a high level ofassuran¢e. but is noi a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misststement 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 usets taken on the basis of these fu￿nCIal statements. Page 8 THE SKINNEILS, ALMSHOUSE CHARITY INDEPENDENT AUDITORS, REPORT TO THE DIREcfoRS FOR THE YEAR ENDED 30 JUNE 2024 Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design pmcedures in line with our responsibilities, outlined above. lo detect material misstaiemenls in respect of irregularities, including fraud. The s￿¢If1¢ procedures for this engagement and the extent to which these are capable of d¢t¢¢tiJ)g irregularities, including fraud are detailed below. Id¢nlifying and assessing risks related to irregularities: We assessed the su￿¢ptibl11ty of the Charitable ¢ompany's fin8n¢ial slat¢ments to material misstatement and how fraud might occur. including through discussions with the Di￿10rS. discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evalu&ted possible incentives and opry>rtunilies for fraudulerm manipulation of the financial Statements. We identified laws d regulation5 th￿ are of significance in the context of the charitable company by discussions with Director5 and uplaling our understanding of the sector in which the charitable company operates. Laws and r¢gulations of ditect significance in th¢ context of the charitable company includ¢ Th¢ Companies Act 2006, guidance issued by the Charity Commission for England and Wales and the Accounts Direction for Social Housing (so far as il applies to this entity). Further, the charitable company is subjectto irther laws and regulatiorts where the consequences of non-compliance could have a material effect on ￿ount5 or disclosures in the financial statements- through a SI￿lfiCant fine, litigation or re5tTictions on the charitable company's operations. We identified the mosl SI￿lfiCant of such laws and regulations to te those issued by The Regulator of Social Housing. Audit response to risk5 identified: We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial 51atem¢nt disclosure5. W¢ r¢vi¢wed th¢ ¢haritabl¢ company's re¢ords of breaches of laws and regulations, minutes of meetings and correspondence with relevant authoTities to identify potential material misstatements arising. We discussed the chariiable Company's policies gmd procedures for compliance with laws and regulations with members of management responsible for compliance. During Ihe planning meeting with the audit team. the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or all¢ged fraud. We addressed the risk of fraud through management override of ¢ontrols by testing the appropriateness of journal entries and identifying any significant transactions that were unusua] or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indtcation of management bias. At the completion stage of the audiL the engagement partner's review in¢lud¢d ensuring thai the t¢am had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non 35.IXM 122220 1385.0211 5(b.914 267,261 2023 Housing %¢ivities: Surplus Non-housing activities.. Resident w¢lfare Other operating costs* Fundtzising Income from property uDttS Investment income net of eosL8 Donation5 rec¢iv¢d Realis¢d gain on inves¢ments Unrealised gain on investments Unr¢ali5ed gain on inv.property Transfers to Repairs Rtterve.. Renewals reserve Cyclical repairg ExtTwrdinary repairs Transfer to development fund 16521 92.789 91137 {t3,9921 {38,4841 (25,8341 1153.9371 69.366 19,374 763 69,366 174.982 763 128,497 21079 1229.179) 1207,1(K) 4.146 9J41 17.604 Il3J(kSl 7295 113.7631 9,1 116.6361 13.8411 135,OWI 35.(KK 27.153 3S.(KN Il9,7141 IIW,682} 8,680 149,6231 • 25%ofoperdlin8 wsts are&weiqtsl wtthP¢r¢y Bilt(AJCw1 Page 17 THE SKINNERS, ALMSHOUSE CHARITY NOTES TO THE ACCOUNTS (Continued) FOR THE YEAR ENDED 30 JUNE 2024 9. F￿h0]d houslng propertles Sh¢lt¢r¢d and Extra CaT¢ Aousing SkinDers Court Palmers Gree Percy Bilton Court HouDsIow Total Cost brought forward l July 2023 Addilions 2,655.108 1,653,302 4,308,410 Gro&8 Cost at 30 June 2024 2,655.108 1,653.302 4,308,410 Analysls 4Jfcost Buildings Freehold land 2,655,108 1.503,302 150,000 4.158,410 150.000 2.655.108 1,653,302 4,308,410 Depreciation Accutnulated depreciation at l July 2022 Chorg¢ for year Accumulated depreciation at 30 June 2024 681,355 49,553 337.447 57,474 1.018,802 107,027 1.125.829 730.908 394,921 Net book value at 30 June 2024 1.924,200 1.258,381 3.182.581 Net bwk v4lue 4¢ 30 June 2023 1.973,753 1.315.855 3.289,608 Th¢ nwnb¢r of units of a¢¢omm(Klation in management at 30 June 2024 w&s: accommodation let at market rent 50 38 88 The freehold value of Percy Billon Court is considered to be in excess of the book cost dixlosed aiy)ve. The value of the freehold land at Skinners Cowl is nol included on the balance sheet. 10. Equipment 2024 2023 Cost at 30 June 2023 29,805 29,805 Cosl ¥130 June 2024 29,805 29,805 A¢cwnulat¢d D¢pr¢ciation ai 30 June 2023 Depreciation- charge for year A¢¢umulA¢ed Depre¢la¢lon at 30 June 2024 N¢t Book Value 30 June 2023 29.805 29,805 29,805 29,805 Net Book Value 30 June 2024 Page 18 THE SKINNERS. ALMSHOUSE CHARITY NOTES TO THE ACCOUNTS (Continued) FOR THE YEAR ENDED 30 JUNE 2024 11. Freehold investment properties 2024 2023 Valuation l July 2023 Increase in value 347,000 347,0(M) Valuation 30 June 2024 347.0(K) 347.OlX) This invesmient relates to the freehold interest in two blocks of flats in Pellipar Close, P￿rnerS Green. The freehold interest was valued at 30 June 2021 by Gerald Eve and was reassessed by the Directors &$ at 30 June 2024 with no change. There were no leases extended during the year (2023 none). Page 19 mchmm *t4 X4 rJyur/J&U THE SKINNERS, ALMSHOUSE CHARITY NOTES TO THE ACCOUNTS {continu¢d) FOR THE YEAR ENDED 30 JUNE 2023 13. Materlal Investments As at 30 June 2024 the Cl]arity held three material investments. These we￿. Sarasin Climate Active Endowments Fund £2,205.069 (2023: £1957,126) Cazenove Charlty response fund £2,584.494 (2023: £2,350,455) CCLA accumulation units £1.857,642 (2023: £1,670.450) The Directors consider material for these putposes to be investments valued over £807,000, being in excess of IOO/o of the value of the yyrtfolio. 14. Reallsed g*its on imvestmeDts Genernl rund Percy Bilton fund Totsl Histori¢ wst loss r¢dis¢d in year Adjustment for gain recognised in previous y¢ars 1,359 18.999 1.359 18.999 Loss recognised in year 20.358 20,358 2023 Historic cost gain reaiis¢d in year Adjustment for gain ￿OgnIS¢d in previous years Gain recognised in prior year 15. Debtors 2024 2023 Arrean of residents, rent Accrued investment income and inler¢st Trade debtors and prepayments 45,464 16,241 30,331 33,450 18,338 52,473 92,036 104,261 16. Creditors Amounts f8lling due within one year 2024 2023 Trade creditors, Accruals Loans (note 18) 117,351 77,669 6,773 201,793 87,420 71,332 6,514 165,266 Page 22 THE SKINNERS, ALMSHOUSE CHARITY NOTES TO THE ACcOU￿s (continu¢d) FOR THE YEAR ENDED 30 JUNE 2024 17. Creditors Amoullts falllng due after more one year 2024 2023 Loans (note 18) 205,386 212,159 l& Loans {1* (2* Totsl Brought forward l July 2022 New loan (trawn 201,855 23,1 224,955 Loan repaid dwing period (2.082) <4,2￿}) (6,282) Totsl creditors 30 June 2023 199,773 18.91X) 218,673 New108n drawn Loan repaid during period Totsl ¢redl¢ors 30 June 2024 (2,314) 197.459 (4.200) 14,700 (6,514) 212.159 lkne wlthln l year Due after l year (2.573) {194.886) (4.200} (6.773) (205,386) (10.500} {1*) Thts loan. originally from the Housing Corporntion, was assigned by the Corporation to Fresh plc (forn)eTly Orchardbrook Ltd) on 26 March 1997. The ternis are unchanged. The loan is repayable by in$ta]ments over 60 years from July 1985 and is secured by a charge on freehold housing propety ￿ Hounslow. The amount repayable in the period to 30 June 2025 will ￿ £2,573. The loan CWTied Inte￿$t during the ￿riod a¢ 10.87511/fj per annum. (2*) This loan is from the AlmslKsuse Association to help fund major refurbishment at Percy Bilton Cowt. It is interest free and repayable over 10 years. Page 23 rq eq W>UCQ Xthg ¢Qw tr4 tyg P4 t4 21?--Pll P_, 11 Yil -kOtr ¢Thrth¢ THE SKINNERS. ALMSHOUSE CHARITY NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 30 JUI¥E 2024 23. Related party transacdons During the Course of the peri￿1 £38,361 (2023:£38,413) excluding VAT WLS paid to Pellipar SerYice5 Company Limited, a company wholly owned by the sole member, in respect ofre¢harges for rent and other costs. All such recharges were rnade on all arni'5 len￿h basis. 24. Taxado The Skinners. Almshouse ChaTity is a registered ch&rity and its income is not liable to direct taxation &8 it is applied to wholly charitsble purposes. 25. RecoDcIIIAtion of net movemen¢ In funds to net cash flow from oper*ting aetivities 2024 2023 Net income for the reporting period (as per SOFA) Adjustments for.. Depreciation charges (Gains)Ilo&ses Im investtnents Dividends, interest and rents from investments Decreasel(lncrea￿) in debtors Increase in ¢r¢ditors Net cash (used)Iprowded by operating activities 267,261 (49,623) 107,027 (457,7W) (278,253) 12,225 36,208 313,262 107,027 207,100 (244,348) (7.809) 15,035 27 J82 26. Analysts of ¢haDges In net debt At l July 202J 785.004 6,514 212.159 Cgsh flo Non-cgsh movemellts At30 Jttne 2024 702.314 6,773 205J86 Cash Loans fallin i due within l N'ear Loans fallin due after more than l Year 82.6 6,514 6.7731 6,773 Total 566 331 76,176 490,155 Page 29