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2021-03-31-accounts

06608621

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Annual Report and Financial Statements for the year ended

31 March 2021

Company Registration Number: 06608621 Registered Charity Number: 1134897

Registered Office: The Old Post Office, Station Road, Wickham, Hampshire. PO17 5JA

Wickham Community Land Trust
A Registered Charity and Company Limited by Guarantee
Trustees’ Report & Financial Statements for the year ended 31 March 2021
Company Reg. No: 06608621 Charity Number: 1134897
Contents
Page
Directors’ Report 1-15
Auditor’s Report 16-20
Statement of Comprehensive Income 21
Statement of Financial Position 22
Statement of Cash Flows 23
Statement of Changes in Reserves 24
Notes to the Financial Statements 25-34

Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

DIRECTORS’ REPORT

The directors present their annual report and the financial statements for the year ended 31 March 2021.

1. PURPOSES OF THE CHARITY

1.1 Purposes as set out in Wickham Community Land Trust’s governing document

The charity’s purposes are set out in the objects in the Company’s Memorandum of Association as follows:

Wickham Community Land Trust (WCLT) is dedicated to the provision of affordable housing in Wickham to relieve the financial hardship of eligible beneficiaries living in the village, surrounding area or with employment in the area; holding the property for the long term public good and protecting it from the damaging effects of asset price inflation and speculation and thereby enabling the provision of affordable housing now and for subsequent generations.

1.2 Summary of activities in support of the purposes

1.3 Summary of Activities in relation to public benefit

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

WCLT is not aware of any detriment or harm arising from the organisation’s aims.

1.4 Benefit to a section of the public

The public which benefits from our work is made up of a cross section of age groups unable from their own resources to afford a home on the open market.

1.5 Identifying Public Benefit

The impact of our achievement goes wider than those families we house, and its public benefits include the following:

1.6 Private benefit

No-one receives any private benefit from WCLT.

1.7 Directors’ Public Benefit Statement

The Directors of WCLT confirm that in drawing up this report they have been aware of their duty to report on public benefit and have paid due regard to the Charity Commission’s guidance in this respect.

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

1.8 Contribution made by volunteers

WCLT has no employees. All work undertaken by directors and our part-time bookkeeper, Mrs Brenda Farrow, is undertaken on a voluntary basis.

1.9 Additional Information

WCLT employs a Managing Agent for its rental properties. While the selection process of suitable eligible persons to occupy its properties remains under the control of WCLT, once that process is complete the Managing Agent deals with the collection of rent and service charge and manages repairs. However, WCLT remains closely involved in management issues and directly manages the shared ownership properties.

2. ACHIEVEMENTS AND PERFORMANCE

2.1 Quantitative and Qualitative Information

In this financial year the number housed by the Trust increased to 23 individuals (adults and children) who qualify under the categories outlined in 1.3 above. There were no changes in tenant occupation during the year, and there were, therefore, no void periods.

Feedback from our residents remains consistently appreciative.

2.2 Meeting the Social Housing Regulator’s Standards

Directors continue to use the Regulator’s Economic and Consumer Standards as points of reference for measuring our service-delivery.

2.2.2 Value for Money Standard (VFM):

The WCLT Board regularly reviews all areas of its operation to look at opportunities for reducing costs or securing additional income in line with its Value for Money Policy.

The voluntary time of Board Members in running the organisation “hands on” is a key contributor to constraining costs as well as providing a responsive service – examples include our financial and administrative returns, lettings, management of shared ownership properties, financial management and reporting. The Board recognises that as WCLT grows additional paid administrative and financial resources will be required and future projects include financial provision for such additions.

The Board recognises that maintenance costs are increasing as properties acquired in 2012 age and has increased budgetary provision in its plans for future years.

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

The Vice Chair and a Board member have conducted an analysis according to the Regulator’s Value for Money metrics. While these are a useful tool generally the Board is aware that the small number of properties WCLT owns means they have to be used with caution and broad comparisons are not reliable.

The Regulator of Social Housing in April 2018 published new standards to Registered Providers by which to establish comparative Value for Money metrics. The following were agreed as relevant by the Board, and we present our performance evaluation against each parameter:

2020/21 2019/20
Metric 3 Gearing (0.26) (0.23)
Metric 4 EBITDA MRI interest cover 0.26 1.58
Metric 5 Social Housing cost (per 8 units owned) £7,182 £4,582
Metric 6 Operating Margin 0.30 0.26
Metric 7 Return on Capital Employed 0.01 0.01

Metrics 1 & 2 - Reinvestment and New Supply - were not used as no relevant activity in these periods. The reduction in Metric 4 has arisen because the Trust incurred significant expenditure in relation to the planned acquisition of additional housing properties, which was largely funded through government grants. The expenditure is included in Metric 4, but the corresponding government grant income is not, hence the apparent decrease in EBITDA MRI interest cover.

2.2.4 Home Standard

WCLT’s Managing Agent also visits tenants in their homes. All tenant reviews remain positive and feedback in respect of WCLT performance has also been positive. Those tenants reaching the completion of their sixth year in residence have renewed their tenancies. WCLT will continue to take account of tenants’ views in monitoring its performance as a landlord.

4

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

2.3 Achievements against objectives set

The objectives for the period 2020-2022 were approved by the Board in September 2019. Satisfactory progress was achieved in all the ongoing management objectives and steady progress was made towards the acquisition of 10 new properties in Wickham at the rear of School Road, now officially named “Wykeham Vale” (the projected purchase was reported in the 2019/20 report as in “School Road”). Of particular note was the offer of loan finance from Triodos Bank to supplement grant funding already agreed with Winchester City Council and South Downs National Park. Negotiations for the purchase of the properties proceeded well and a purchase agreement was close to finalisation by the year end. In addition, the necessary security documents relating to the new properties were raised and distributed to the Trust’s lenders in order to ensure agreement on orders of priority over assets. The necessary legal documents were, at year end, close to finalisation and post the year end, progress has been maintained. Relations with the developer, Croudace, and the Housing Association from which we shall make the purchases, Aster, have always been good and remain so. The Trust, even before the purchases have been formally agreed, has been a party to the development since a start on site was made in the previous financial year. Unfortunately, due to Covid restrictions construction has been slowed with prospective first completions being projected some three months later than originally planned, now projected to be February 2022. A revenue grant from the Community Housing Fund through Homes England covered much of the pre-development work costs incurred by the Trust although because the fund was for expenses to be incurred and paid by the year end, a small repayment of monies drawn down against the grant will have to be made in the following year.

In addition to growth and expansion objectives the 2020-2022 objectives include the intent to increase local profile of the Trust and although no action took place on these goals in the year, plans were made in outline and agreed to be carried out in the following year. Nevertheless, a major boost to our local involvement plan was the receipt of a donation of £250,000 in FY 2019/20 in memory of a local business couple, Dick and Joyce Warwick, which has made a considerable difference to our ability to contribute significant funds towards new projects and rely less on commercial lending. The Board wishes to thank Dick and Joyce’s family for their generosity in supporting of housing for local people, to whom they had a lifelong commitment.

WCLT will continue to monitor and review its achievements to ensure it continues to meet its aims.

3. FINANCIAL REVIEW

The financial statements have been prepared in accordance with the Housing SORP 2018.

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Under this SORP the capital grant from Homes England used for the purchase of homes in Houghton Gardens, is classified as deferred income in the Balance Sheet with a proportion being taken each year to the Income and Expenditure account.

Also, under this SORP, the Income and Expenditure account is titled the Statement of Comprehensive Income and the Balance Sheet is called the Statement of Financial Position. In addition, we have included a Statement of Cash Flows.

The principal financial management policies in force are WCLT’s Financial Controls Policy, Monitoring and Review Policy and WCLT’s Reserves Policy.

3.1 Financial position at the end of the period

We are reporting a surplus for the year of £7,780 (2019/20 surplus of £263,725).

The Trust’s operating performance in this financial year has been consistent with prior years. The cash position at the end of the year was very strong as a result of grant income unspent during the year and the cash donation made in the previous year that is still held in our accounts. The surplus was planned to be lower through the payment of a deposit (£205,000) on the purchase of 10 homes in Wykeham Vale, Wickham before year end but, as described in 2.3 above, negotiations on the purchase were delayed beyond the fiscal year. The sums are carried forward in anticipation of the transaction being completed successfully during FY 2021/22. The deposit amount is half of the total grant agreed with the Council towards this project, the remainder due on practical completion of the units. In the event that negotiations to purchase the homes fail, this grant will be returned in full to the Council, so it is ring-fenced within our accounts. To ensure that the funds remain available for return, if necessary, the deposit will not be paid until there is absolute assurance that the CLT can purchase the homes within the rent terms (“affordable rent”) as dictated by the s106 and Homes England procedures.

Cash has further remained high due to a generous donation of £250,000 from the executors of a local businessman received in 2019/20 and retained in our account that will also be directed in large part to the purchase of homes in Wykeham Vale.

Revenue grant was also drawn down from Homes England to part finance the upfront legal and other fees of the Wykeham Vale project and one other project under discussion. The grants were allocated from the Community Housing Fund that closed on March 31[st] , 2021. Any funds drawn down but unspent at that cut-off date are to be returned to Homes England and a little over £8,000 is to be returned in FY2021/22 and is accounted for in the Financial Statements which follow.

To finalise the purchase of the Wykeham Vale properties (expected to be completed in two equal tranches in 2021/22 and 2022/23) The Trust has agreed a grant from South Downs National Park that will be payable on practical completion of the properties and entered into a commercial loan facility arrangement, with Triodos Bank.

6

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

3.2 Reserves

WCLT ‘s Reserves Policy states the Trust’s intention to hold reserves to the equivalent of at least 6 months of normal operating costs in order to:

In line with Charity Commission guidance this policy was reviewed in July 2021 and will be reviewed annually.

As at 31 March 2021 the Trust held reserves of £346,503 (2019/20: £338,723). The reserves held at the end of the Financial Year are the equivalent of 72 months’ operating expenditure.

3.3 Principal Funding Sources

3.4 Rental Income

3.5 Expenditure

7

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

3.6 Risks

3.7 Investment

As part of the original loan terms with Charity Bank, WCLT has £8,426 (2019/20: £8,407) in a Charity Bank Deposit Account. Although Charity Bank has been sufficiently satisfied with the soundness of WCLT’s performance to lift this condition WCLT chooses to retain this deposit.

3.8 Fundraising activities

WCLT has not undertaken any active fundraising in the course of this financial year.

3.9 Events subsequent to this report period

3.10 Plans for the forthcoming year

In addition to the ongoing management of WCLT’s existing properties, the Trust’s activities in 2021/2022 will be heavily influenced by progress on projects to expand its portfolio of affordable homes.

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

3.10.2 Discussions with both Winchester City Council and Homes England to develop options for WCLT’s acquisition of 20 further homes on a Homes England site at Knowle, near Wickham, have stalled and will be picked up again if and when the authorities have a clear strategy for moving ahead.

3.10.3 WCLT has developed excellent working arrangements with developers/housing associations bidding for involvement in the above sites.

3.10.4 At each step of the way, WCLT carefully appraise any financial and viability risks involved in these new openings

3.10.5 WCLT has addressed issues of scaling up to deal with these potential developments and recruiting extra trustees to cover increased workload and/or to employ a member of staff to assist with the increased administrative work.

4. STRUCTURE, GOVERNANCE AND MANAGEMENT

4.1 Governing Document

Wickham Community Land Trust (WCLT) is registered in England and Wales as a Company Limited by Guarantee with charitable aims, with the governing documents being Memorandum and Articles of Association. It was registered as such on 2nd June 2008

4.2 Legal Definition of a Community Land Trust under the Housing & Regeneration Act 2008

WCLT meets the legal definition of a community land trust as defined by the Act.

4.3 Members and Membership

Subscribers to the Memorandum and Articles of Association were the first members of the Charity. Membership is open to other individuals or organisations who apply to the Charity in the form required by the Directors and who are approved by the Directors. The Board hopes to recruit new members in this way as part of its succession planning.

There is one class of membership.

Persons with Significant Control: WCLT keeps a register in which to record such but at present the position is Nil.

In accordance with our Conflicts of Interest Policy all directors are required to complete annually a Register of Interests.

There have been no changes to the composition of the Trust Board during the year.

Any local authority appointments should be maintained at less than 20% of the total board. There are currently no LA appointments represented on the Board.

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

4.4 Director Induction, Training and development

Directors are provided with a Trustee Role Description and asked to sign a Trustee Code of Conduct and to complete a Declaration in respect of Individual Voluntary Arrangements, bankruptcy and unspent convictions. All directors have a copy of the Charity Commission publication ‘The Essential Trustee: what you need to know’. Updates in the Charity Commission’s Newsletters are disseminated to Directors during the year.

Suitable opportunities for development through attending courses, conferences or seminars are identified and supported at Board level.

4.5 Organisational and Structural Matters

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

4.5.9 Legal

4.6 Relationships with related parties

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

5. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY

Charity Name :

Wickham Community Land Trust

Charity Registration Number : 1134897

Homes England Registered Provider : 4692

Company Registration Number : 06608621

Registered Office and operational address : The Old Post Office, Station Road Wickham, Hampshire, PO17 5JA.

Correspondence address :

P.O. Box 739, Fareham, Hants, PO14 9RH.

Board of Directors :

Mr. N. A. Holladay Chairman Mr. G.S. Phillpotts Vice Chairman The Reverend A. J. Smith Finance Director Mr. A. Raymer Director and Company Secretary Mr. C. Cook Mr. E. Fitzgerald Mr. D.R. Thompson The Reverend Jane Isaac Nominee of Benefice of St. Nicholas, Wickham and St. John the Baptist, Shedfield.

Mrs Wendy Greenish

Bankers : NatWest, 52 West Street, Fareham, Hants. PO16 0JX

Legal Advisers : Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham, B3 2ES

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Auditors : Rothmans Audit LLP, Statutory Auditors and Chartered Accountants, Avebury House, St Peter Street, Winchester, Hampshire, SO23 8BN.

Chartered Surveyors : Chandler Hawkins (Portsmouth)

Hon. Adviser : Mr. A. R. Robinson, Diocesan Secretary, Diocese of Winchester

Managing Agent: Byrne Runciman, Estate Agents, The Square, Wickham, Hampshire, PO17 5JT

6. FUNDS HELD AS CUSTODIAN TRUSTEES

6.4 Estate Service Charge:

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Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

7. CONCLUSION

WCLT has enjoyed a period of consolidation with the Trust able to concentrate on managing its properties as well as possible for the individual residents and with regard to the long-term aims of the Trust.

From this sound base, WCLT has been able to engage actively and constructively in development of the Wykeham Vale site that commenced on site in January 2020. WCLT’s involvement could be crucial to this community in that only WCLT has allocation criteria which allow it to accommodate local people in perpetuity. The addition of the 10 homes on the site to the Trust’s portfolio is a major step forward in the growth of the service to local people in need that remains at the heart of the Trust’s objectives.

WCLT is very grateful for the support of local people and those organisations with which we have worked over the last few years. We particularly appreciate the good and sometimes special working relationships with these supportive organisations.

Sincere thanks are also due to the directors who have given their time and expertise generously and voluntarily to push WCLT’s goals forward. WCLT is grateful to those directors who are keen to continue into next financial year.

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Independent Auditor’s Report to the Members of Wickham Community Land Trust

Opinion

We have audited the financial statements of Wickham Community Land Trust (the ‘Trust’) for the year ended 31 March 2021 which comprise the Statement of Consolidated Income, the Statement of Financial Position, the Cash Flow Statement, the Statement of Changes in Reserves 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:

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 association 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 board's 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 association'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 board with respect to going concern are described in the relevant sections of this report.

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Independent Auditor’s Report to the Members of Wickham Community Land Trust (continued...)

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report[i] , other than the financial statements and our auditor’s report thereon. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Independent Auditor’s Report to the Members of Wickham Community Land Trust (continued...)

Director’s responsibilities

As explained more fully in the director’s responsibilities statement set out on page 15, the directors (who are also the trustees of the charitable company for the purposes of company 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 as the directors determine are 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 directors are responsible for assessing the Trust’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 directors either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

The objectives of our audit, in respect to fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures include the following:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Use of our Report

This report is made solely to Wickham Community Land Trust’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Trust’s members 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 association and the Trust’s members as a body, for our audit work, for this report, or for the opinions we have formed.

30 September 2021

Susan Sullivan FCA (Senior Statutory Auditor)

For and on behalf of Rothmans Audit LLP Chartered Accountants and Statutory Auditors Avebury House 6 St Peter Street Winchester Hampshire SO23 8BN

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Statement ofComprehensivelncome
ortheyearendedStMarch2O2L
2021- 2020
Note f f
Turnover 2 72,925 49,723
Operating expenditure 2 157,4571 (36,658)
OperatingSurplus 15,468 13,065
lnterestreceivable andotherincome 3 75 264,428
lnterestpayable andfinancingcosts (7,763], (13,768)
(Deficitl/Surplusonordinary activitiesbeforetaxation 4 7,78O 263,725
Taxation 5
(Deficit)/Surplusfor theyearandtotalcomprehensiveincome74 7,780 263,725

tatementofFinancial Position
sat31March2021
3lMarch 3lMarch
2021 2020
Note
f f f
Fixed assets
Tangiblefixedassets 7 698,555 7LA,857
Currentassets
Prepaid expenses
Cashatbank andinhand		 I 3,748
523,128		 3,74L
510,545
526,876 5L4,285
Creditors-Amountsfallingduewithinone 9 (21,2481 (19,455)
year
Netcurrentassets 505,628 494,821.
Totalassetslesscurrent liabilities 1.,204,L8? L,2O5,678
Creditors-Amountsfallingdueaftermore 1_A 1847,7071 (858,077)
thanoneyear
Provisionsforliabilities 73 (9,973) t8,878)
Total Netassets 346,503 338,723
Reserves
lncomeandexPenditurereserve 74 345,503 ,38,723
TotalReserves 346,503 338,721

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Statement of Cash Flows

For the year ended 31 March 2021

Note 2021 2020
£ £
Net cash generated from operating activities 15 (1,774) 16,747
Cash Flow from Investing Activities
Interest received 25 74
Cash Flow from Financing Activities
Grants and donations received 22,095 467,530
Interest paid and other finance costs (7,763) (13,768)
Net change in cash and cash equivalents 12,583 470,583
Cash and cash equivalents at the start of the year 510,545 39,962
Cash and cash equivalents at the end of the year 523,128 510,545

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

Statement of Changes in Reserves


At 1 April 2019
Surplus for the year
Total comprehensive income
At 31 March 2020 and 1 April 2020
Surplus for the year
Total comprehensive income
At 31 March 2021		 Income and
expenditure
reserve
£
74,998

263,725
263,725
338,723
7,780
7,780
346,503		 Total
£
74,998
263,725
263,725
338,723
7,780
7,780
346,503

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Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

N otes to the Financial Statements

1. Accounting policies

a) Legal status

Wickham Community Land Trust is registered under the Companies Act 2006 as a company limited by guarantee incorporated in England and Wales. It is registered with both the Charity Commission and Homes England as a Registered Provider and is a public benefit entity. Its registered office is The Old Post Office, Station Road, Wickham, Hampshire, PO17 5JR

b) Basis of preparation

The financial statements have been prepared

The financial statements are presented in sterling which is the functional currency of the Trust and are rounded to the nearest pound.

As the Company is a charity, the wording of the statutory formats required by the Companies Act 2006 has been appropriately amended in order to give a true and fair view.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

c) Significant Judgements

In applying the various accounting policies relevant to social landlords, the trustees have determined to categorise the houses owned by the trust as fixed assets rather than investment properties. As such they are shown at cost rather than market value. As house prices have risen since the houses were acquired by the trust this means that they are shown in the accounts below market value.

d) Key Assumptions and sources of estimation uncertainty

The trustees consider that there are no significant areas of uncertainty in the assumptions they have made that would be likely to cause a material change to the carrying value of any assets or liabilities over the next year.

25

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

1. Accounting policies (continued)

e) Funds structure

f) Turnover

Turnover comprises rental income receivable in the year, service charges receivable in the year and income from shared ownership first tranche sales. Income from first tranche sales is recognised at the point of legal completion of the sale.

g) Expenditure

Expenditure is recognised on an accruals basis.

h) Fixed assets

Housing Properties

The company holds four properties available for rent and four properties available for shared ownership.

Fixed assets are stated at cost less accumulated depreciation.

Depreciation

Freehold land is not depreciated.

The company separately identifies the major components which comprise its housing properties and charges depreciation so as to write down the cost of each component to its estimated residual value, on a straight-line basis, over its estimated useful economic life.

The company depreciates the major components of its housing properties over the following timescales

Structure 100 years
Roof 60 years
Kitchen 20 years
Bathroom 30 years
Boiler 15 years
Heating System 30 years
Windows & Doors 20 years
Electrics 30 years

26

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

1. Accounting policies (continued)

Impairment

Impairment reviews are carried out as and when evidence comes to light that the recoverable amount of a functional fixed asset is below its net book value due to damage, obsolescence or other relevant factors.

i) Shared ownership properties

Shared ownership properties are split proportionally between current and fixed assets based on the element relating to first tranche sales. The first tranche proportion is classed as a current asset and related sale proceeds included in turnover and the remaining element is classed as fixed assets and included in housing properties at cost, less any provisions needed for depreciation or impairment.

j) Social Housing Grant

Social housing grant (SHG) is receivable from Homes England. Under SORP 2018 the company has adopted the accruals model for the recognition of government grant and is required to account for such grants as deferred income and to take a portion of the grant to income each year. Grants relating to housing properties are recognised in income on a systematic basis over the useful economic life of the housing property structure.

k) Debtors and Creditors due within one Year

Debtors and creditors receivable or payable within one year, and with no stated interest rate, are initially recorded at transaction price and are subsequently measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

l) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

The Trust is in receipt of two loans with interest rates below the prevailing market rate of interest. These loans are not repayable on demand and are for the purposes of furthering the objectives of the public benefit entity or public benefit entity parent and are therefore accounted for as concessionary loans. These loans are initially measured at the amount received and in subsequent years the carrying amount of these loans is adjusted to reflect any accrued interest payable.

m) Provisions for Liabilities

Provisions are recognised when the Trust has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

27

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

2. Income and Expenditure from Social Lettings

Turnover
Intermediate rental income
Shared Ownership rental income
Homes England grant taken as income
Homes England revenue grant
Charges for support services
Expenditure
Maintenance costs
Insurance
Void costs
Property Management Costs
Other costs		 2021
£
31,408
13,987
3,700
22,045
1,785

72,925

(6,666)
(4,186)
-
(2,638)
(43,967)

(57,547)
 2020
£
30,586
13,581
3,700
-
1,856
49,723
(5,422)
(4,093)
(348)
(2,569)
(24,226)
(36,658)

Rental income is stated net of identifiable service charges.

3. Interest receivable and other income

Interest receivable
Insurance claims
Donations & grants received
4. Surplus on ordinary activities
This is stated after charging:
Auditor’s remuneration – for audit services
Auditor’s remuneration – non-audit services
Depreciation		 2021
£
25
-
50
75
2021
£
3,924
564
12,302
 2020
£
74
1,824
262,530

264,428

2020
£
3,708
-
12,302

4. Surplus on ordinary activities

This is stated after charging:

28

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

5. Taxation

As a charity, WCLT is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.

6. Key management personnel remuneration and employees

Key management personnel neither received nor waived any remuneration during the year. (2020: £nil). The charity had no employees in the current or previous year.

7. Tangible fixed assets

Freehold Land and Freehold Land and
Buildings - Buildings - Total
Intermediate Rent Shared Ownership
£ £ £
Cost
At beginning of year 495,007 310,166 805,173
Additions - -
 -
At end of year 495,007 310,166
 805,173
Depreciation
At beginning of year (59,157) (35,159) (94,316)
Charge for year (7,716) (4,586)
 (12,302)
At end of year (66,873) (39,745)
 (106,618)
Net book value
At 31st March 2021 428,134 270,421
 698,555
At 31stMarch 2020 435,850
 275,007
 710,857

The above assets, with a net book value of £698,555 are pledged as security against the Trust’s loans.

29

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

8. Prepaid expenses

8. Prepaid expenses
Insurance costs
Other		 2021
£
3,660
88

3,748
 2020
£
3,656
85
3,741

9. Creditors – Amounts falling due within one year

Bank Loans (note 12)
Other creditors
Accrued expenses
Deferred income from Homes England grant		 2021
£
6,604
7,128
3,816
3,700

21,248
 2020
£
6,361
5,364
4,040
3,700
19,465

10. Creditors – Amounts falling due after more than one year

Bank loans (note 12)
Loans from other institutions (note 12)
Deferred income from Homes England grant		 2021
£
224,171
84,302
539,234

847,707
 2020
£
231,329
83,815
542,933
858,077

The loans from other institutions are concessionary loans with interest rates below the prevailing market rate.

30

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

11. Deferred Grant Income

2021
£
At 1 April
546,633
Received in the year
-
Released to income in year
(3,700)
At 31 March
542,933
Amounts to be released within 1 year
3,700
Amounts to be released in more than 1 yr
539,233
542,933
12. Bank loans and loans from other institutions
2021
£
Due within one year and on demand
6,604
Due after one year but less than two years
6,687
Due after two years but less than five years
21,630
Due after more than five years
280,156
315,077
 2020
£
345,333
205,000
(3,700)
546,633
3,700
542,933
546,633
2020
£
6,361
6,604
21,362
287,178
321,505

12. Bank loans and loans from other institutions

The aggregate amount of debt secured upon the intermediate rental properties and the share of shared ownership properties retained by the trust is £315,077

The loans bear interest in the range of 0% to 3.75% The instalment loan is repayable over 25 years and as at 31 March 2021 £280,156 of instalments were due after more than 5 years .

13. Provisions for liabilities and charges

Provision for future overhaul 2021
£
9,973
 2020
£
8,878

Provisions for liabilities and charges comprise of amounts set aside for the future overhaul of the properties.

31

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

14. Reserves

Unrestricted general Total reserves
reserves
£ £
Balance as at 1 April 2020 338,723 338,723
Surplus /(deficit) for year 7,780 7,780
At 31 March 2021 346,503 346,503

15. Statement of Cash Flows from Operating Activities

Surplus for the year
Adjustment for non-cash items
Depreciation
Increase in deferred income
Amortisation of government grant
(Increase) in prepayments
(Decrease)/increase in creditors
(Decrease) in loans
Increase in provisions
Adjustment for investing and financing activity
Interest payable and other finance costs
Grants received
Interest received
Net cash generated from Operating activities
15a Analysis of changes in net debt		 2021
£
7,780
12,302
-
(3,700)
(7)
1,540
(6,427)
1,095
7,763
(22,095)
(25)
(1,774)		 2020
£
263,725
12,302
205,000
(3,700)
110
(2,326)
(5,623)
1,095
13,768
(467,530)
(74)
16,747
Long term borrowings
Total liabilities
Cash and cash equivalents
Total net debt		 2020
Cash
Flows
Other
changes
2021
£
£
£
£
321,505
(6,428)
-
315,077
321,505
(6,428)
-
315,077
(510,545)
(12,583)
-
(523,128)
(189,040)
(19,011)
-
(208,051)

32

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Trustees’ Report & Financial Statements for the year ended 31 March 2021 Company Reg. No: 06608621 Charity Number: 1134897

16. Accommodation in management

At the end of the year, accommodation in management for each type of property was as follows:

Shared ownership
Intermediate rent		 2021
4
4
8		 2020
4
4

8

17. Company limited by guarantee

Wickham Community Land Trust is a company limited by guarantee and has no share capital. As at 31st March 2021 there were 9 (nine) members. Every member promises, if the Company is wound-up, to contribute such sum (not exceeding £10) as may be demanded of him or her towards any deficit.

18. Director Information

No remuneration was paid to the Directors during the year (2020: £nil).

19. Capital commitments

At 31st March 2021 there were no capital commitments (2020: none).

20. Related parties

During the year, no expenses were reimbursed to trustees (2020: £357 to 2 trustees). No expenses were reimbursed to a company in which a trustee has an interest.

21. Ultimate controlling party

Wickham Community Land Trust is ultimately controlled by the board of Trustees.

22. Financial instruments

The carrying amounts of the Trust’s financial instruments are as follows:

Financial assets measured at amortised cost:
- Cash at bank and in hand		 2021
£
523,128
523,128		 2020
£
510,545
510,545

Financial liabilities measured at amortised cost

33

Wickham Community Land Trust

A Registered Charity and Company Limited by Guarantee

Wickham Community Land Trust
A Registered Charity and Company Limited by Guarantee
Trustees’ Report & Financial Statements for the year ended 31 March 2021
Company Reg. No: 06608621
Charity Number: 1134897
- Other creditors (note 9)
- Bank and other Loans (note 12)		 7,128
315,077
322,205		 5,364
321,504
326,868

The total interest income for financial assets that are measured at amortised cost was £25 (2020: £74). The total interest and finance expense for financial liabilities that are measured at amortised cost was £7,763 (2020: £13,768)

34