Wlckham Communlty Land Trust Annual Report *MI Statem￿l0rthQ ￿00d Marth 2023 Byrne Rundm•n. The Squ•rn. P017 5JT Wickham Community Land Trust A Registered Charity and Company Umlted by Guarantee Twstees, Report & Financial SLitements fr)r the year ended 31 March 2023 Company Re& No: Cth)8621 Charity Number. 1134897 Contents Page Directors, Report 1-17 Auditorfs Report 1&22 Statement of C¢mprehensi* Incomè 23 Statement of Flnanclal P051tlon 24 Statement of Cash Flows ,25 Statement of Changes In Reser4es 26 Notes to the Flnandal St•tements 27-35 Wlckham Community Land Trust A Registered Charity and Compary Limited Guarantee Trustees. Report & Flnancial SLitements forthe year ended 31 Marth 2023 Company Re8. No: 06608621 Charlty Number. 1134897 DIREcfoRS' REPORT The dlrettors present thelr annual rewt and the financlal statements for the year ended 31 March 2023. I. PURPOSES OF THE CHARrtY 1.1 Purpos•s as set out In Wkkham Communlty LandTvu￿# yr••rnlw d0￿ment The charws purposes are set out In the objects In the Companvs Memorandum of Assoclation as follows: The provlslon of soclal housln8 and housln8 to relltho financlal hardshlp: and To promote such other charitsble purposes as may from tlme to tlme be determlned sublert to the prior Wfltten consent of the CharFty Commlssion. Wlckham Communlty Land Trust IWtIT) Is dedkated to the wovlslon of affordable houslng In Wlckham to relleve thefln8r￿al hardshipof ell8lble beneficlarles Imng In the vlllage, surroundln8 are or w5th employment in the area; holdln8 the property for the lon8 term publlc good and protettlng It from the dama8inB effects of a55et price inflatlon and speculation and thereby enablln8 the provislon of affordable housln8 now and for subsequent pneratlons. (Note.. slnce the year end, the clvll parlph of Wlckham has been re-named Ullckham and Knowle", the boundartes of whSth are ctrtermlnus wlth those of Wlckham partsh at the grant of the TrusV5 charltable status. All references In th15 report and future refe￿nCeS to Thvickham therefore relate to the paflsh of Vlickham and Knowle"). 1.2 5urnm•ry of artl¥ltl•s In support ol th• purpos•s Mana8e the bu51ne55 01 the Trust In siKh manner as to cover ￿$ts •nd, as a not-for-profit or8an15atlon, to re-lnvest for malnten•no of the propertles Maintain and run our propertles In such a waythattheyun rem•ln a lon8-terni publlc benefft, contrlbtrtlng to the sustainability of this communlty Manage the 0Tr8oln8 movement of resldents Into and outof the propertles so thatthe homes remaln a benefrt to those who quallfy to (xcupy them on around5 of need Maintain the affordable nature of the accommodath?n Retain the freehold of the properties In accordance wlth the charitable alm5 of WCLT to provide asset lock Pursue opportunit6es to further meet WCLfs charltable oblettives through the prov55k>n of addr(ional affordable homes In the ￿CInEty. wo￿ng In c(wratlon wlth Wlnchester Clty Council and Homes England Monltor and rewew the charltvs perf¢)rn)ance agalnst Its charitsble obJect￿e5 on a regular ba515. Wickham Community Land TNst A Registered Charity and Company Limrted by Guarantee Trustees, ReN)rt & Financial Statementsforthe year e￿Ied 31 Marth 2023 Company Reg. No.. 06608621 Charlty Number. 1134897 13 Summ•ryofActl¥1￿ In rtlallon to pulAk benefft WCLTS maln focus Is on provldln8 housln8 f¢r those who cannot afford from thelr own resources to buy or rent a home on the open market The housln8 of those livlng In shuatK)ns Inadequate or unsuliable for thelr need51 regardless of thelr a8e. sex, maritsl status or any otherdifferentiator The housing of familles lfvln8 In v4efcrowded conditions by vlrtue of inabllity of youn8 adults to flnd alternatlve affordable homes Housln8 those who h)se thelropen market ￿nts1 homes because of Sale or Increased rent The housing of key workers serving the local area Provision of housing to a number of households with local connertbon enablin8 them to receive support from thelr famllles le.8. chIldca￿l or to PrO￿de support to famlly members who need help le.g. to elderly rdatlvesl 5horterlourney tlmes forthose resldents wlth work In the local area. WCLT15 not aware of any detrlment or harm arlsing from the organtsatlon's alm& IA B•n•fftto 4 *ctlon ofthe publk The publlc whkh benefitsfrom ourwork is made up of a cross sectlon of a8e 8roups unable from thelr own resources to afford a home on the open market. Selectlon crEteria for applicants Include housing need, InabS1ityto afford woperty to buy or to rent on the open market. the ablllty to meet the affordable rentlmort8a8e out8olng5 on a WCLT home, suStabllity of the homes WCLT has available to meet the applicanw needs and local connectlon (see GeoBraphlcal Restrlctlon below). cal Rertrlrti WCLT serves the 8eo8raphlcal area of Wkkham Sn Hamp5hlre, Its adlolnlng partshe5 and the admlnlstratlve area of Winchester aty Councll, in that order of prSorlty. 8elng an attrartlve vlllage wSthin reach of three cStles, Wln¢he51er, Portsmouth and Southampton, Wickham's house prlces, both for purchase and renL are hl8h and beyond the mean5 of many people from thls specfflc vlclnSty who wish to be able to Itve in the communityfrom whkh they come or In which they work. 1.5 Id•ntlfylng Publk O•n•fft The Impart of our achievement goes wlder than those familie5 we house. and Its publlc benefits Include the followln8'. A redurtion In the number of people seekln8 affonlable housin8 In the arna A reduciion in local barrier5 to housin8 An increase In houslng stock available for affordable homes Increased avallabllty of local accommodatlon for key worker5 serving the local area Wickham Community Land Trust A Registere(i Charity and Company Llmtted byGuarantee Trustees. Report & Financial Statements for the year ended 31 March 2023 Company Re8. No: 06608621 Charity Number. 1134897 A redurtlon In dlstance5 between home and workplace for Peop￿ worktn8 In the area The retention of assets within the I￿1 communltyfor public benefrti provtdln8 a lon8-temi asset lock. 1.6 PrI￿te bon•lft Ntrone receNes any prlvate benefit from WCLT. 1.7 Dlr•rtorf Publlc B•n•fft Stat•mert The Dlrertors of WCLT conflrm that In drawlng up thls report they have been aware of thelr duty to report on publlc benefit and have paKI due re8ard to the Charity COMM￿10n,$ 8uldance in thls respect. IA Contrlbutlon m•de by¥olunt•• WCLT has no employees. All work undertaken bydlrectors and ourpart-tlme bookkeeper. Mrs Brenda Farrow. Is undertaken on a voluntary basls. 1.9 Addltlon•l Infornwtlo WCLT employs a Man?8ln8 A4ent for Its rentsl propertle5. Whlle the selertbn process of 5ultable ellglble persons to occupy its proBertles remains under the control of WCLT, once that process is complete the Mana8ln8 Agent deals wrth the collertlon of rent and service charge and mana8es Tepalrs. However. WCLT remains cFosety Involved In management issues and dIrett￿ manage5 the shared ownershlp properttes. 2. ACHIEVEMENfs AND PERFORMANCE 11 Q￿nIk￿l¥• and qu•llt•tlve Inforn)thn In thls flnandal year the number housed by the Tn￿ Increased to 43 Indfviduals ladults and chlldrenl who qualify under the ¢ate8orles outllned In 1.3 above. This number 55 higherthan the prevlous year 1241 because the Trust acquired 10 new wowties during the financbal year. takln8 the totsl portfollo to 18 properties. There were few changes in tenant occupation durin8 the year: one tenant in a 2 bedroom13-person house, moved to one of the newly acquired properties offerin8 3 bed accommodatlon as the children were reaching an a8e requlrln8 them to haveseparate bedrooms. One other tenant moved out to new accommodation elsewhere. There were, therefore, two volds but these each lasted less than a month as they were re4xcupled by new tenants within a matter of weeks. Feedback from our resldents remalns consisteth appreciative. Wlckham Communtty LandTrust A Reglstered Charity and Q>mpany Limited by Guarantee Tru5tees' Report & Financial Statements for the year ended 31 March 2023 Company Re& No: LW)8621 Charity Number. 1134897 12 Me•tlng the So¢l•l Houslng Reeul•torfs Stsndan15 Director5 continue to use the Regulatorfs E¢￿0M1¢ and Consumer Stsndards a5 points of reference for measuring our ser4lctrdell¥ery. 2.2.1 rn and Financial Wiabll WCLT 's Code of pra￿Ce and Flnanclal Viabllity, based on the standard. sets out the fvndamental values whKh underpin WCLfs practice and ensures that it al meets the Regulatorfs standard and bl conducts it5 business In an effectlve, transparent and accountsble manner. The Board certthes Its complSance wlth the stsndard durln8 the course of 202212023. 2.2,2 al for Mone Sta VF The WCLT Board regular￿ reviews all areas of Its operatlon to look at opportunltles f reducing costs or secudn8 addltlonal income in line wtth rts Value for Money Policy. The voluntary tlme of Board Members In runnln8 the organbsation Thands on" is a key contributor to t(￿straInIn8 costs as well 45 provfjding a responslve seplce- examples Snclude our flnanclal and adminlstratfve retums. lettln85, mana8ement of shared ¢>wner5hlp propertles. financial mafiagement and reportlng. The Board reco8nlses that as WCLT grows addttlonal pakl admlnlstratNe and financlal resources wlll be required and future projert5 include finandal priNision for such addhbns. The Trust has ownershlp of 18 affordable propertles at the end of the financial year. If further properties are acqulred beyond thls level. It wlll be necessary to put Into place more formal arrangements. probably requlrln8 part-tlme employment. The Board recognlses that malntenance costs ère Increaslng as propertlÈs acqulred In 2012 a8e and has Increased budgetary provI￿On In Its plans for future years. In Aprfl 2018. the Re8ulator of ￿)cIal Housln8 publlshed new standard5 to Re8lstered Provlders by whlch to establish comparatlve Value for Money met￿C5. Whlle these are useful tool 8enerally the Board 15 aware that, belng a relatlvely small provlder, such metrics have to be used wlth ca4rtion and broad comparisons are not ￿lIable. The Board fee15 that the foll¢)wln8 are relevant measures and we present our performance evaluation against each parameter. 2022123 0.66 0.56 0.42 0.65 £4.581 0.07 202ty22 Metric l Reln¥eslment Metric 2 New supply Metrlc 3 Gearing Metrlc 4 EBrrDA MRI interest cover Metric 5 Social Housing cost (per unlt ovmedl Metric 6 Operatln8 Margin Metric 7 Return on Capital Ernployed 10.281 2.97 £4,671 0.25 o.oi Metrics l and 2 - Reinvestment and New Suppty ha¥e been Introduced this year following the purchase by WCLT of additional house& Wickham Community Land Trust A Registered Charity and Company um￿ed by Guarantee Trustees, Report & Financial Statements ft)rthe yearended 31 March 2023 Company Reg. No: 06608621 Charity Number. 1134897 2.2.3 R nt Standard: whllst WCLT is exempt from this srandard through Its provision of housing for intsrmediate rent, the Board refers to the Regulatorfs Guideline Limit in Fts rent review. as recommended In the Stsndard. In 2022123 WCLT applied a rent Increase of 3.45% to ks Intermediate rent properties and an 8.6% rise to Its shared ownershlp properties in order to maintaln affordability. althou8h the Rent Standard guideline would have allowed hlgher increases. The Trust was mindfvl of the economk strain on tenants, budgets as a resuft of the "cort of Ilvln8 crls1< and kept fent Increases to a minlmum but deliberately held rents towerthan had been allowed In the previous year. The ten new properties acqulred In August 2022 In4) and January 2023 In=51 are governed by the terms of an s106 agreement whlch pe85 them to rents equal to Local Housln8 Allowance. 11 QualSty of accommodatk)n: wars 18 homes meet the Go¥ernmenVs Decent Homes regulrement and also Sustainab51ty C4)de 3 and Lrfetlme Homes crtterla. ill Repairs and Malntenance: WCLT Is respon5r￿ to matters of orqolni repalr and malntenance. 2.2,5 volve WCLT convened a meetlng with resldents on 29 November 2022 to dlssemlnate Informatlon. explain char8es and to capture resldenw vle¥rt and respond to any of thelr concerns. More detslls arè given 4t 6.4 below. WCLf5 Managlng Agent a150 vlslts tsnants In thelr homes. All tenant revlews remaln posltfve and feedback Sn respect of WCLT perfomiance ha5 also been posltive. Those tenants reachln8 the cOmple￿On of thelr slxth year In resldence have renewed thelr tenancles. WCLT wlll contlnue to take account of tenantr vlews In monhorln8 tts performance as a landlord. 2.2.6 Ne hbourhood and Commun. Sta In mana8ln81ts Current portfollo WCLT works to good effect wlth Hydè Group, Aster Homes, Wickham CommLtrnlty Assoclatlon and Wlckham Parlsh Council In respect of ground5 malntenance. street lightln& the access road and communlty issues and with Wlnchester Clty Counell and Wkkham Festival Organ￿eT$. 2.2.7 Tena Stsnd rd. AltlK¥ugh as a provlderof Intemiedlate homes WCLT ts exempt from this standard, WCLT still retain5 rts current tenancy standard as a useful guide and operatlonal reference point In relation to tenancies and tenarKY procew. 2.3 Achle¥ements aplnst objethes set The objectives of the Trust We￿ revlewed during the star and the 8oèrd agreed that they were still valld and should be carried fonvard Into the next planning perlod 2023- 2025. Satisfactory Pro8￿ was achieved In all the ongolng management obSecd¥es aThl the first homes planned for Wickham Community Land Trust A Registered tharity and Company ￿rnIted by Guarantee Trustees, Report & Financial Statsmentsfor the year ended 31 March 2023 Company Re8. No: 06608fQl Charlty Number. 1134897 acquisition in Wykeham Vale were purchased in July 2022. Delays in construction encountered bythe developer Icroudace Homes Ltd) a5 a result of the pandeml¢.10ss of workers returninB to the EU after Brexit and supply constraints meant that these were acquired some 10 months later than originally planned and many of the costs assoclated wlth the acquisition were incurred in the Prior financlal year. The delays in delivery meant that the remaining five home5 agreed to be purchased were also not completed in the time planned. completion of the purchases eventually tsklng place in January 2023. Flnanclng arrangements for these ten acqulsltlons (grants of £410.(X)O from Winchester Clty Council, £150,oc(Ifrom South Downs National Park. and £250.OCQfrom a legary donation to the Trust, and loans from Triodos Bank totallin8 £844.1601 were all in place before the 5tsrt of the financlal year and were execLrted as planned. Detalled ff nandal modelllng wa5 updated wlth each Increase Ir* the Bank of England base rate as the loan flnance with Triod05 Bank is on a variable basis of 3% above base. Because interest rates were rlslng with each month In the second halfof the flnanclal year. the Board agreed to supplement 8rant fund5 with £50,LX)O from reserves In order to reduce exposure to loan flnance, reducing the total of Triodos loans to £794,160. Triodos requlred the Trust to meet two condltion5 for the two loans arranged wlth them. The first. Loan to Value ILTVI 75%. was shown always to be achlevable because total loans required forthe whole prolect represented only 50% of the totsl purchase prfce for all the unlts. The second crtterlon, however. repayment coverat 1.25. 1fte￿tablY was affectÈd by Increases In Interest rates. Modellln8 demonstrated that the Trust would be able to meet this requlrement Ltp to and Includln8 a Bank Rate of 3%. Above th* flgure. ft was not posslble to match the target and the base rate rea¢hed 4% In March 2023. Impart of thls rate therefore had Ilttle effert in FY 202V23. Although not appllcable to the Retst for FY 2022123 It Is Important that the Board should comment on the posStlon as ft hascontlnued to ev¢)Ive intothe nextfinanclal year. The Board Is pleased to report that a5 rates contlnued to rlse during calendar year 2023. Triodos agreed that the lar8er of the two loans wlth them could be Sp1￿ Into two with one of them beln8 Iriterest only for a perlod of 10 year5. This arran8emenl although not affectin8 the finandal year perl¢xl subject of thls reporL enablèd the 8oard to agree to enter into the second trarKhe of flnance in quarter 4 of FY 202V23 In order to complete the purchase of the second group of five homes. The contSnued rises in Interest rate5 15 concemln8 but the Trust has assumed in Its b￿1get an average Bank Rate of 4% for FY23124 whlch, assuming rates stsrt to slow In the second half, should mean that overall flnancial outcome wlll be mana8eable loss which can be covered by the stron8 reserrfes poS￿10n held by the Trust. It will mean, however, thaL untll rates fall bacL the repayment cover requlrement of the Triod05 loans will not be met and we will need the Bank to be flexible in thelr attltude to risk. The board has recelved comfort In princlple In this regard and it Isto be hoped that reliance on reserves will not be prolon8ed. It Should be noted. however. that cash resen￿$ at the end of FY 2022123 stood at £87,(￿. far higher than our month oper*ln8 costs pollry and suffidentto withstand further rate rises and prolon8ed hl8h rates. Nevertheless, this Is not a comfortable posidon. and the Board continues to monftor the impacts in order to be ready to take artion if necessary. 3. FINANCIAL REVIEW The financial statements have been prepared In accordance wrth the Housln8 SORP 2018. Wlckham Communty Land Trust A Registered Charity and Company timlted by Guarartee Trustees, Report & Financlal Statements for the year ended 31 Marth 2023 Company Reg. No.. 06608621 Charrty Number. 1134897 Under this SORP the capltal 8rant from Homes En8larKI used for the purthase of homes In Houghton Gardens,1s cla￿l￿ed a5 deferred income in the Balance Sheetwith a proportk)n beln8taken each year to the Income and Expendlture accounL Also, under this SORP, the Income and Expenditure account is titled the Statement of Comprehenslve Income and the Balance Sheet is called the Ststement of Financial Position. In addition, we have Included a Statement of Cash Flows. The principal financlal management pollcies In force are WCLfs Financtal Controls Poll￿4 Monltorln8 and Review Policy and WCLfs Reserves Pollcv. 3.1 Fln•ncl*l posltlon at the end of th• p•rlod We are reportln8 a deft￿ for the year of £22,45512022 surplus of £5,348). The Trusvs operatlng performance In this financlal year has been conslstent wtth prioryears, The cash po$6tlon at the end of the year was stron8 as a result of the Trust havln8 recelved a hlgh proportlon of the acquSsltlon costs for the properties In Wykeham Vale from gfants and a detemlnatlon not to utilise morethan was necessary of a legacydonatlon of £25O.lY￿ received In the prSor year. As a result the accounts record a free cash posltion of £87,&)) at the end of the year. As a resu￿ of the Interest rate rlses outllned above. the P&L for the year wlll show for the first tlme in the Trust's hlstory a marginal operatin8 loss. Fortunatety cash surpluses mean that thb can be covered satlsfactofity In the short-term but w511 cause concern apd the need for actlon If Ates contlnue hl8her than 3% for more than one financial year. 3.2 R•ser¥es WCLT 's Reserves Pollcy stste$ the Trusvs Intention to hold reserves to the equlvalent of at least 6 months, of nomlal operatln8 costs In orderto: ensure contlnuky In metln8 the needs of benefldarbes and the Charityes financlal obligations ensure the Charity can brld8e cash flow problems if? perlods of changeoverwhen beneficiaries leave or move Into propertles or rental Income drops at such tlmes molntsln and develop Its charttable actl¥ltle5. In Ilne wlth Char￿¥ Commi$51on guldance thls pollcy was revieW￿d in July 2022 and wlll be reviewed annually. As at 31 March 2023 the Trust held reser￿ of £329.39612022: £35L8511. The re5er¥es held at the end of the Financial Year are the equl*rdlent of 48 months. operatln8 expendlture. 3.3 Prfnclpal Fundln8 Sources 3.3.1 Lenders In the pertod were asfollows-. Charlty Bank Wickham Community Land Trust A Registered Charity and Company Limrted by Guarantee Trustees, Rew)rt & Financial Ststementsforthe year eThled 31 March 2023 Company Reg. No.. IJ6608621 Charlty Number. 1134897 Winchester Qty Ccmjncll Hyde Group Triod05 Bank 3.3.2 Donations: £114712022 £nll) 3.4 Rentsl Inmm• 3.4.1 Rental Incomefrom the 14 rental propertles and 4 shared ownershlp propertles has provlded a steady income throughout the financial year, enhanced inevitably by the additional 10 homes acquired durlng the year. Hence rentsl income was £37,&X) hi8her than in the prior year. There weretwovoid pedtyjs owln8totenants serrflng notice but neitherof these lasted more than a few weeks. There were void periodsforeach of the new propertles acquired on Wykeham Valewhllstweapproved applications fortenancles. but. agaln, noneof thesewere for more than a few weeks afterthe propertles were acqulred. 3.5 Expendltur• 3.5.1 WCLT has contlnued to be cautious wtth Its expendlture and at the end of the perfod flnance5 remalned healthy. Operatln8 expendfture was hlgher than In prevlou5 years refle¢tln8 the Increased slze of the housin8 Portfollo and dlredy related admlnlstratlve and legal expenses. However. the yRar showed an operatlng surplus of £10,39912022 £13.0561 3.5.2 Maintenance costs were 5i8nificantly hl8her than we had budgeted because of the unplanned need to replace some appliances In ohjer propertle5 and the Board'5 dec5slon to Incur expendlture on some ImpriNed fittings In the new propertles in the interests of our new tenants. The next hlghest component was on&off le8al fees irKurred In purchasin8 the Wykeham Vale properties. The Trusf s budget for FY23124 reflerts a conservatlve attttude to the maintenance cost trend and is expected to return to 4 more normal pattern. 3.5.3 All payments are governed by WCLfs Flnanclal Controls Policy and any repayment of expenses to dirertors is made accordln8 to the re8ulations lald down in that policy. 3.6 Rls*s 3.6.1 The Trust, by the very n*ure of Sts bus5ness ftM)del. Is dependent on rental revenues and on extemal finance, and will thus always remaln exposed to potential Increases in interest rate5. Risks are rfrassessed at each Board meeting and increases In interest rates remain the single m05t $18nlficant rlsk to the business. The extent of thls risk a5 ft affects the Trust 8oin8 Into FY23124 is discussed in detall In sertlon 2.3. It will be e55ential for the Board to maintain good communlcation with, and the confidence of, our lenders. Fortunately. the value of our assets Ic E4.5ml Should be suffKient for our lenders to feel that thelr posltlons are suffKientty secure. 3,6.2 Successlon planning feature5 in the Trustrs regular risk appralsal. Thls has allowed the Trust to securethe servicesof a newcompany Secretsryand a returnin8Trustee durin8 the year. Wickham Community Land Trust A Re8i5tered Charity and Company timited ty Guarantee Trustee5' Report & Financial Ststements for the year ended 31 March 2023 Company Reg. No: 06608621 Charity Number. 1134897 3.6.3 Plans for futu￿ Involvement In other sltes (see 3.10 bekMI also feature wrthln our regutar a￿$$ment of risk 3.6.4 The Q)rona virus pandemic fortunatety had Ilttle effect on our tenants but thelr circumstances were closely monitored and support offered to them should the need arise. 3.6.5 The voluntary affordable homes sertor Is dependent on sUPPOrt from the government. The Trust has benefitted in past years from the availabllfty of the Communlty Housing Fund ICHFI. Desplte the natlonal fr￿ed for affordable housin& the availabl1￿ of funds to support organisations providin8 communlty led solutions is disappointing. 3.6.6 The Government has absofved Communhy Land Trusts from the right to buy that affects other form5 of afftirdablÈ hou5in8 provlder. If this were to change it would Impact the TrusV5 chadtsble objects and so thls risk Is constantty under revlew. 3.7 lTrvestment As part ol the or5glnal loan terms wlth Charity Bank. WCLT has £8,46512022: £8.4431 in a Charlty Bank Deposlt Account. Although Charlty Bank has been sufficiently satisfied wlth the soundness of WCLfs perlorniance to Ilft this condition WCLT choose5 to retaln thls deposit. 3.8 Fundr•lslni •rtl¥lt WCLT launched °Frlend5 of Wlckham Communlty Land Trusff In January 2023 and Is pleaMd to report that it has received donatlons from i small number of locjl people. The Trust Intends to bulld on thls stsrt in years ahead. 3.9 Events subsequent to thls report p•rlod 3.9.1 The two rent revlews conducted In the Y￿r, one for the rental propertbes and one for the shared ownership home5 In Hou8hton Gardens. were condurted In the last quarter of th15 report perlod, w￿h implementation following Sn the subsequent reportlng perfod. 3.9.2 The principal events affectln8 the Trust subsequent to thls report period have been the Increases In base Interest rdte& The effect of these and the longer-temi Impacts are dSKussed in section 2.3 above. 3.10 Plans forthe forthcomln8 year In addltlon to the ongolng mana8ement of WCLfs e¥15tin8 properties. the Tru5Vs atttvttles In 202312024 will be concentrated on: 3.10.1 Ensuring that rlsks related to interest rates and increases in costs of malntenarlce are kept under close scrutiny and aciion taking promptly and as appropriate. 3.10.2 Ensuring that tenancies In Wykeham Vale are managed successfvlly in the first year of thelr ownership and that all outstanding defetts in the second tranche of homes purchased are satisfactorily completed wlthln the 12-month post-acquisltlon perFod 3.10.3 Discussions with both Winchester (Jty Council and Homes EnyJand to de%Elop optlons for WCLfs acquisitionof 20further homeson a Homes En8land slte at Knowle. near Wickham, Imckham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees. Report & Financlal Statements for the year ended 31 Marth 2023 Company Re8. No: I￿)8621 Charity Number. 1134897 were flagged in the Annual Reports for the last two years. It 15 understood that Issues regarding planning are likefy to be resolved during FY23124 and the Trusvs participation will depend on the terms of financkil provislon by 8rant-making bodie5 3.10.4 WCLT maintaining its excellent workln8 arrangements with the managin8 agent. the City Council and the management companies responsible for comtnon areas of sf(es on which Its properties are situated. 3.10.5 WCLT has addressed Lssues of scall￿a UP to deal wlth these potentlal developments and recrultlng extra trustee5 to cover increased workload and/or to employ a member of staff to ass15t wlth the Increased administrative work. 3.10.6 The Trust will contlnue Its campaign to Inform more widety local people of the Trusys worl and bulld further the Frlends network. ft wlll work to increase the likelihood of $18ntficant donatlons from local people to support Irs work 4. sfRucfuRE, GOVERNANCE AND MANAGEMENT 4.1 Cfftmlry (lowm•nt Wickham Communlty Land Trust IWCLT) Is re8iStered In England and Wales as a Company Llmlted bv Guardntee wlth charttable alms. wfth the 8overnlng documents belng Memorandum and Artlcles of AssocSatlon. It was re8iStered as such on 2nd June 2008 4.2 Lepl Oefinltlon ol a C•mmunlty Land und•rth• Ilowlw & R•yn•r•tlon Act 21YI8 WCLT meets the legal definltlon da communlty land trust as defined by the ACL 3 M•mbtts and M•fflb•Nhlp Subscrlbers to the Memordndum and Artbdes of Assoclatlon were the first members of the Charlty. Membershlp Is open to other indNiduals or or8anlsations who apply to the Chartty In the form requlred by the Dlrertor5 and who are approved by the Directors. The Board hopes to recrult new members Sn this way as part of its succe55ion plannln8. There 1$ one class of membership. Persons wlth Sl8nlflcant Control: WCLT keep5 a register in whkh to record such but at present the P051tlon 15 Nll. In accordance with our Confllcts of Interest Polky all dlrertors are required to complete annually Register of Interests. There have been no changes to the cornposition oftheTrust Board durin8theyear with the exceptkln of the appointment of David Peters to replace Anthony Raymer as Trustee and Company Secretary. Any local authorsty appointments should be malntalned at less than 20% of the total board. There are currently no LA appointments represented on the Board. Wickham Community LandTrust A Registèred Charity and Company Umited by Guarantee Tru5tees' Report & Financlal Statements for the year ended 31 March 2023 Company Reg. No.. 06608621 Charity Number. 1134897 4 Dlre¢tor Indurtlon. Tralnlng and d￿knpmQnt Directors are provlded wrth a Trustee Role Descrlptknn and asked to s18n a Trustee Code of Conduct and to complete a L)eclaration In respect of Individual Voluntary Arrangements. bankruptcy and unspent convittions. All dirertors have a copy of the Charlty Commission publicatlon The Essential Trustee.. what you need to knov/. Updates in the Charrty Commlsslon's Newsletters a￿ dlssemlnated to Dlrectors during the year. Sultèble OpportUn￿leS for development throu8h attending courses. c*)nferences or semlnars are Identlfied and 5UPPQrted at Board level. 4.5 Oryanlsatlon•l and Structurnl M*tt•rn 4.5.1 D•yto D•y M•na8ement The dgy-to4ay management of WCLT Is undertaken elther by •n execLrtfve commlttee or by the Houslng Su1￿COMmIttee. The executive ￿mMIttee consists of the Chalmian. Nlcol Holladay. the Company Seuetsry. Davld Peters lelerted September 20221, and the Vlce Chalrman. Geoffrey Phillpotts, wfth inNthment of the Financial DSrector where relevant. The Hou5in8 Su1￿0mMIttee Is made up 5e¥erally of Geoffrey Phlllpotts, Davld Thompson, Davld Peters and Wendy Green15h to deal wlth Indlvldual housin8 matters and the allocation of propertles. Other dirertors accordin8 to thelr skills and roles are called on as per actlons agreed at meetln8s. Dlrectors are regularty upd*ed on current b5ue5 atthe board meetln85 and all major and policy dpcislons are taken by the board. The 8oard Is sad to report thaL subsequent to the year*nd, one If Its Trustees. Jane Isaac, passed away and another, Christopher Cook. has had to withdraw from actlve participation due to ill-health. 4.5.2 Code of Pr•ctlct WCLT has Ets own Cl￿e of Practlce and Flnandal Vfjablllty, based on that of the Houslng Regulatorfs Standard. whlch the Board deems approprtate tothe or8an15atlon'5 size and role as a non-profft reglstered provider. 4.5.3 Code of Go¥ern•nce has Its own Code of Govemance based on that of the Char Commission. Both this and the Code above set out the fundamentsl values whlch underpln WCLfs operation and against which the 8oard can assessthe effectfvene55 of its8overnance arrangements and operation. 4.5.4 WCLfs m•rter t•n*Tr￿ docurn•nts are In Ilne wlth current leglslatlon. 4,5.5 Asset R•ilster WCLT manages Its re￿urCeS prudently to ensure Its vlablllty and actlvely assesses and mana8es rfsk. Whilst our properties have not been revalued in the accounts (see ac¢ountin8 policy h} a valuation carried out In April 2018 at the behest of Charlty 8ank showed that all the ei8ht properties In Hou8hton Gardens have a market value well in excess of cost anfl these market values have been noted In the asset re8iSter. Propertles Iri Wykeham Vale were Independently valued a5 part of the purchase process and, although house prices have dropped since then, thelr market value remalns well ahead of thelr purchase c05t. 4.5.6 Data Protedl•)n: In Ilne wlth current le8lslatlon on GDPR WCLT ha5 audtted the dats it handle5. It ha5 published its Prhacy Polky and the Board recelve5 a Data Protectlon report at e3¢h meeting. 4.5.7 R15k Managemerrt Consideratton of WCLfs Risk AP￿dISa1 ts led by Trustee Davld Thompson and embedded as a regular item In Boanl Meetin85 and the Board is satlsfied that WCLfs li Wlckham Communlty Land Trust A Registered Charty and Company Limited byGuardntee Trusteeg Report & Financial Statements forthe year ended 31 March 2023 Company Reg. No.. 06608621 Ihiity Number. 1134897 consideration of risk 15 sufficiently infomied to encompass consideration of both internal and external matters and that WCLT has complled wlth regulatory requirementsto date and will continue to do so In the foreseeable future. 4.5.8 Insurance: WCLfs cover provides for Dlrectors, and officer￿ tiabilty Insurante. Public and Pr0dL￿ts Liabillty Insurance. Property Owners. Uabllity Insurance and Bulldln8s Insufance. WCLT holds NHBC certification for all its thirteen properties. 4.5.9 L•gal 11 New tenants are In￿allY offered our Starter on￿ Assured Shorthold Tenancy. and progress to a flve-year FNed Term Assured Shorthold Tenancy after a 5atisfattory probatlonary period. ill Shared Ownershlp Weements are based on the Homes E￿land Model Lease for Protected Areas. wlth stsir-casln8 restricted to 80%. 1111 Our tenancy agreements are reviewed and endorsed by our le8al advisers. 4.5.10 Rqlstered Offlc4: the Trusvs re8lstered office at The Old Post Offbce was chan8ed after the end of the Report perlod because the relatlonshlp wlth the owner of the address chanBed by mutual coT￿nt and wlth full amlcable a8reement. The new Registered Office addrÈss was removed In May 2023 to the addres5 of the Trusvs mana8lng agent ft>r rental propertles Ibyme R4Jnclman- re8lstered office detalls updated In Sectlon 5 below. 4.6 Rel•tlonshlps vAth fel•ted partl 4.6.1 Chath Commlsslon.. WCLT Is a re8lstered char6ty Ire8lstratlon 12th Mafeh 20101. WtLT submlts an Annual Return to the Charity Commlsslon and is in receipt of Its Informative Quarterty Newsletters. 4.6.2 Homes England and Re￿latOr of Sodal Houslw: WCLT is re8iStered as a non-profrt prlvate registered provlder of social housln8 with the re8ulatSn8 body. WCLT In term5 of reiulatlon counts a5 a small provider. As a Re8iStered Prov6der WCLT reports to and recelves advlce from the regulator and submtts ￿5 Ststlstlcal Data Return under NRosh+. 4.6.3 WCLT, through Its own polity documents and processes. both seeks to meet the regulatorfs Economic Standards and to reflett Its Consumer Standards. These underpin WCLfs operations and throughout thls financkl period WCLT has souzht to malntaln and revlew Its perforniance against these operating standards. 4.6.4 Hyde Houslni Assoclatton: Wrth WCLT owning eight of Its current portfol￿ of propertles on a shared 51te wtth Hyde Housin8 A$￿¢14t10n ciMnmunKatlon between us Is Important. 11 The wothng relationshlp be￿en WCLT and Hyd¥s local housln8 management team ts in essence ctroperatlve and effertib*. ill Communication with Hyde Group's centrallsed departments can be more dlfflcult. WCLT strlves to keep the channeb of communication open and after some useful exchan8es marked Improvement has been wttnessed. Inforniation regardin8 proSerted Estate Char8es15eesection 6 below: Fundsheld as custodian trustees) is now improved enabllng the Trust betterto projertfinancial commFtments both forthe Trust Itself and for tenants in Houghton Gardens 4.6.$ Wykeham Vale Man•8ement Comp•Thy. A% part of the arrangements for the purchase of homes In Wykeham Vale. the TA￿ has entered into a ￿1rrt agreement with Aster Homes for the managementof common areas InthedevelopmenL The arrangementwllltake fvll effect Wickham Community Land Trust A Re81Stered Charity and Company Umlted by Guarantee Trustees. Report & Financial Ststements for the year ended 31 March 2023 Company Re8. No: 06608621 Charlty Number. 1134897 In 2023124 but advance notthcatlon of char8es has been rffelved in FY 202123 and are consldered reasonable. In the lead up to complete handover of Its properties from the developer, relatlon5hips with the developer. Aster and thelr Employerfs A8ent. the Rund Partnership have been very helpful and ConStr￿tI¥e. There are two outstanding issues requiring resolution: the Installatlon of b8htln8 on parts of the slte and a question re8ardln8 the wisdom of one of the boundary locatlons. It Is antkipated that these wlll be resolved to all partie< satisfaction. 4.6.6 Wnchutsr aty Coun£N WCLfs relationship whh Winchester Clty Council contlnues to be 5UPPOrtlve of the CLfs alms. The re￿Se￿ alloCa￿on$ porky - requirtd to enable the Trust to comply wlth $106 conditions for Wykeham Vale - was agreed at the end of FY 202V22 and has operated successfully durin8 FY 2023124.. 4,6.7 Radlan Gr¢)up.' WCLT Is party to a seThlce lerfel agreement wlth the Local Home8uy A8ent, Radlan Ipartof the Abrl Group), forbou￿n8 Sn Wlnchester Cl￿5 dlstrlct. As part of this, thelr online property web51te for the area. wwnalty HomeslnHants and rtow "Helpto8uySouth", advertises WCLfs affordable homes. puts Wentlal applicants In touch wlth WCLT and notifies WCLT of the waltln8 Ibt for homes in the area. In turn WCLT provides Radlan wlth WCLfs allocatlon dats. From 202314 the Government has replaced Help to Buy South wlth a natlonal datsba5e and WCLT ts In dlscusslon wlth Wlnchester Chy Councll re8ards future reporting for our intermedlate rent and shared ownershlp priwertles. 4.6.8 N•tlonal CLT Network (NCLT) WCLT ts a ry*mber arml both beneffts from thls membershlp and actlvely supports the NCLT in Its work. 4.6.9 Infornwtlon CommlMlon•r and the Omb￿1$M￿. WCLT 15 re8lstered wlth the former In respert of Oats Protertlon and, as a provlder of sodal hou51n& Is re8lstered w￿h the Housing Ombudsman Service. 4.6.10 WICk￿rn Parlth Coundl: WCLT malntslns Its Ilnk5 vth Wkkham Parf5h Coundl wtth communlcatlon5 w￿h the aerk tothe Partsh Council and Ind￿ldUal counclllors and exhlbfted at the Parlsh A55embty In May 2022. 4.6.11 H*mpshlrn Home Chol¢•: as Stated In 4.6.5 abfft, in order that the TN5t can offer homes on Wykeham Vale to qualifylng tenants. Its all¢xatlons and nominatlons polScy has been rewsed to satlsfy the requlrements of $106 agreement 8overnin8 the provlslon of affordable homes on the sfte. Intsr ollo, thls required the Trust to $18n up to advertlse ordable vacanties to local people through Hampshlre Home Chol￿. 4.6.12 Byme Rundman: the Trusys manawng a8ent for rental properties. The firm collects rents from rentsl propertles and is the first port of call for rental tenants for asslstsnce. The relationship between the Tnjst and Byme Runclman continue5 as strOn￿V as ever and they provided great asslstance durin8 the short perknds of bfjids experfenced during the period and ensuring that homes purchased I￿ Wykeham Vale were in exemplary order when the new tenants moved In. The relatlonshlp is an excellent example of local buslnesses workln8 together for the good of the communlty. Wlckham Community Land Trust A Registered Charity and Company Limrted by Guarantee Trustee￿ Report & Finanaal Statementsforthe year eThled 31 March 2023 Company Reg. No.. 06608621 tharity Number. 1134897 5. REFERENCE AND ADMINislliATIVE ￿Alls OF THE CHARfTY Charlty 14am•: Wlckham Community Land Trust Charfty Rqlstratlon Number. 1134897 Homes En8l•nd A•8lrtered Pro¥lder: coM￿nY R￿StratIon Number: 06608621 Rellstered Offl¢e •nd op•r*lloMI address: ByTne Runclman, The Square, Wid(ham. Fareham. Hampshlre. P017 SJT. Correspondence addrem: P.0. Box 739, Fareham. Hants, P014 9RH. Board of Dlr•¢tors lu •t September 20251: Mr. N. A. Holladay Mr. GS. Phlllpotts The Reverend A J. Smith Mr. D, Peters Mr. C. Cook Mr. E. Flt28erald Mr. D.R. Thompson Mrs Wendy Greenlsh Capt. A. Robinson. RN Ms. S-J Chl¥ers Chairn)an Wice ChaIrn￿n Flnance Dlrector Dlrector and Company Secretsry (elected Sept 20221 {eknted Sept 20221 (elected Sept 2023) Ch•nps In Bo•rd of Dlrectorl Mr. A Raymer The ReNErend Jane Isaac retired Marth 2023 deceased June 2023 B•nkers: Natwest, 52 West StreeL Fareham, Hants. P016 OJX Lwl Ad¥lsefS: Anthony Colllns Sollcltors LLP, 134 Edmund Streel Blrmlngham, B3 2ES Audltots: Rothmans Audit LLP. StatLrtory Audltor5 and Chartered Accountants, Avebury House, St Peter Street. Winchester. Hampshire. $023 88N. Chart•r•d Sumyors: thandler HaWkIr￿ (Portsmouth) Mana8lnB A8tht Byrne Runciman, Estate*nts. The Square. Wckham. Hampshire, P017 14 Wickham Community Land Trnst A Registered Charty and Company Limrted by Guarantee Trustees, Report & Financial Ststements for the year ended 31 Marth 2023 Company Reg. No: 06608621 Charity Number 1134897 6. FUNDS HELD AS cusfoDIAN TRIISTEES 6.1 WCLT levles certaln monthty charges from their tenants: 11 Service charges for Malntenance and Sinknng Fund togetherwith an administr*lve and accountin8 costs fee 111 Estate Service Char8e for grounds malntenance at Houghton Gardens undertaken by Hyde Housln8 and payable to them on Invoice. The￿ Is a collectlon fee assoclated wlth th15. 5111 Estate Servlce ¢har8es for Wykeham Vale wlll be effectlve startin8 in FY 203124 6.2 As custodlan of fund5 held on behalf of othw5 WCLT has two aient Accounts Into whtch to deposit sums related to il and lil a￿)Ve. 11 Sums related to the General Sep4ke Charges and Estate Servlce Char8es are pald Into a current account. 111 Contrlbutlons collected for the Slnkln8 Fund are placed In an Interest-eamlng Buslness Resenie Actount. 6.3 General 5ervlce Charge. WCLT. In Its revSew of rents and seTvFce charges In February 2022 declded agaln to Increase the lery rate for Slnklng Fund to allow for inflatlon. Thls Increase of the General Servlce Char8e came Into effect from May 2022. 6.4 Estste Servlce Charge: 6.4.1 WCLT made proarels durlng the year wlth Hyde Housln8 In managln8 these char8es and arrangements for Hou8hton Gardens, whlch It Is hoped wlll set a new standard of communlcatlon 6.4.2 The Trust makes adequate provtslons to meet the charyes whkh a￿ communlcated to us and after varlous correttkx15 that need to be made. annual costs are a8reed and pald. We regard that, after several year< e￿rIenCe, budgets are predlctable, provisions a￿ adequats. and expendlture15 under fina￿la1 control. 7. CONCLUSION WCLT has enl¢)yed a perlod of solld performance with ft5 lon8Standln8 Portfolio of properties and the stsrt, after frustrating delays. of a growth perlod wlth the completKm of purchases in Wykeham Vale. The Trust ha5 concentrated on managing its properties as well as posslble for the indmdual resldents and wlth regard to the long-term alms of the Trust From a sound fflnanclal base. WaT has been •ble to dellver its commitment to emtend communlty4ed ownership of affordable propertles for the benefft of local people. The addl￿on of the 10 homes on the site to the Trust's portfolio is a major step forward In the 8rowth of the 5erylce to local people In need that remains at the heart of the Trusvs objectives. WCLT 15 very grateful for the SUPFK>rt of local people and those organiSat￿n$ w￿h whlch we have worked over the last few years. We particularly appredats the good arKJ sometimes spedal workln8 relationships w￿h these supportfve organisat￿nS. Wickham Communlty Land Trust A Registered Charity and Company ￿mIted by Guardntee Trustee5' Report & Financial Statements for the year ended 31 Marth 2023 Company Re& No: 06608621 Charlty Number: 1134897 Slncere thanks are also due to the dlrectors and our hlBhty efflcierrt l>)okkeeper. all of whom have en their time and expertbse 8enerously and voluntsrily to Push WCLfs goa15 forward. WCLT Is grateful to all who are keen to continue Into nextllnancial year. The Board Is grateful to Anthony Rayn*rforefflciently carryin8 Out the taskof Company Secretary for the past three years and welcomes David Peters.who is already making his mark on the efficlency of the Trusvs operatlons, as hls successor. We are atso very pleased to welcome back Andrew Robinson and hi5 wise counsel to the Board. Subsequent to the dose of the year, the Board was strengthened by the electlon of Sara-jane Chlvers who brings with her extenslve and deep knowled8e of the affordable housing sector. We remaln hopeful that Chrls Ct)ok wlll continue In impro¥ed heath and be able to return to actlve partl¢ipatSon to Board matters. It is wlth very 8reat sadness. however. that Wd Jane Isaac passed away Shortly after the end of FY22123 and we shall &￿￿tlY mlss her gUIdan￿ and commltment to the Trust. The Board extends its deepest condolences to Davld and hb son Tom. Flnally, the Boar(I pays trlbute to ￿ tenants In an expandin8 Portfolio of affordable homes: we are proud of them. and we are dell8hted that we h•ve been able to prwde affordable homes for them In ourcommunlty. srATEMENT OF DIREcfoRY RE5PONSIBIUTIES The dlrector5 are responslble for preparin8 the Annual Report and the flnanclal ststements In accordance wlth applicable law and Unfted Klngdom Accountlng Stsndards (United Kingdom Generally Accepted Accountln8 Practlcel. Company law requlres the dlrertors to prepare finandal sktements for each financlal year whlch 8fve true and fair vlew of the state of affairs of the charltable company and of the incomlng resources and applicatlon of resource5, including the Income and expendlture. of the charltable company for that period. In preparln8these financial statementy the dlrectors afe requlred to: ensure contlnu5ty In meeting the needs of ￿nefidarIe$ and the CharfV5 financlal obllgatlons select suitable accountlng pollcles and then apply them conslstent observe the methods and prlndple5 in the Housln8 SORP make judgments and estimates that are ￿aSonable and prudent state whether applicable UK Accounting Standards have been followed, subject to any material departu￿ dlsdosed and explained in the flnanclal statements; and prepare the financial statements on the going cOt￿ern basls unless It15 Inapproprlate to presume that the charltable c¢mpany will continue In business. The dlrectt)rs are responslble for keepin8 proper accountlng records that disclose wlth reasonable accuracy at any tlme the fin3ncial poSit￿n of the thafltable company and enable them to ensure that the financial statements comply wrth the Companies Art 2L¥J6. the Charities Art 2011, the Housing and Regeneration Att 2CTh and the Accountin8 Directlon for prfvate rewstered providers of Social housln8 In En8land 2019. They are also responsible for safeguardin8 the assets of the charitable 16 Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees, Report & Financial Statements for the year ended 31 March 2023 Company Re8. No: 06608621 Charity Number: 1134897 company and hence for taking ￿aSOnable steps for the prevention and detection of fraud and other irregL51arities. In so far a5 the direttors are aware: there is no ￿levant audit infomiation of which the charitable companvs auditor is unaware; and the directors have taken all steps that they ought to have taken to make themsebves aware of any relevant audit information and to establish that the auditor is aware of that information The dlrectors are responsible for the rnaintenance and integrity of the corporate and financial information included on the charitable companls website. Leglslation in the United Klngdom governin8 the preparation and dissemination of financial statements may differ from le8islation in other jurisdiction5. This ￿port has been prepared in accordance with the speclal provisions of Part 15 of the Companles Act 2006 relating to small componies. f the board, Davld Pete Director and Company Secretary 18 September 2023 17 Wickham Community Land Trust A Registered Charity and Company Umlted by Guarantee Trustees, Report & Financial Ststements for the year ended 31 March 2023 Company Reg. No: 06608621 Charity Number. 1134897 Independent Auditorfs Report to the Members of Wickham Communlty Land Trust Opinion We have audited theflnandal statements of Wlckham Communlty Land Trust (the YrusV}forthe year ended 31 March 2023 whlch comprise the Statement of Consolidated Income, the Statement of Flnancial Posltlon, the Cash Flow Statement. the Statsment of Chan8e5 in Reserves and notes to the financlal statements, includlng 518nificant accountin8 policles. The financlal reporting framework that has been applied in their preparation is applicable law and United Klngdom Accountln8 Standards, Including Financlal Reportlng Standard 102 The Flnonciol Reportirw Stondard opplkoble In the UKond Republic of Irelond Iunlted Klngdom Generally Accepted Accountlng Prarticel. In our opinion the financlal statements: give a true and falrview of the state of the Trusys affalrs a5 at 31 March 2023, and of Its Income and expendlture, for the year then ended: have been properly prepared In accordance w￿h Unbted ￿ingdOM GenerallyAccepted Accountlng Practlce: and have been prepared in accordance wlth the requlrements of the Companles Att 2006. the Housing and Regeneratlon Act 2(X)8 and the Accountlng Dlrectlon for prlvate re8lStered provlders of s￿la1 houslng in En8land 2019. Basls for oplnlon We conducted our aud5t in accordance wlth Intematlonal Standard5 on Audkln8 IUKI IISAs IUKII and applicable law. Our responsibilities undef those standards are further described In the Auditorfs responsibilr(ie5 for the aud￿ of the financlal statements sectSon of our report. We are Independent of the a550clation In accordance with the ethical requlrements that a￿ relevant to our audlt of the financlal ststements in the UK, including the FRCS Ethical Standard. and we have fulfllled our other ethlcal responsibilities in accordance wfth requlrements. We belleve that the audlt evldence we have obtalned is sufflclent and approprlate to provlde J basls for our oplnlon. Concluslon$ relotlni to iolN conc•rn In audltlng the financlal rtatements, we have concluded that the board's use of the goin8 concern basis of accounting In the preparation of the flnancral statements Is appropriate. Based on the work we haNt performed, we have not Identtfied any materlal uncertalntles relatlng to events or condltlons that, individually or collertive￿. may cast si8nfficant doubt on the association's ability to contlnue a5 a 8oin8 wncem for a perlod of at least twelve months from when the financlal statements are authorlsed for Issue. Our responsibilities and ts respon51bilrtles of the board wrth resyrt to golng concern are descrlbed In the relevant sectlons of thi5 reporL Wickham Communty Land Trust A Registered Chartty and Company Llmlted by Guarantee Trustees, Report & Financial Statements forthe year ended 31 March 2023 Company Re8. No: (W)8621 Charity Number. 1134897 Independent Audltorfs Report to the Members of Wlckham Communlty Land Trust (contlnued...) (Xher Inforrnatlon The directors are responslble for the other Infomiatkm. The other Information comprlses the infom)ation included in the annual report,. other than the financial statements and our audltorfs report thereon. Our opinion on the finandal statements does not cover the other Informatlon and, ex￿pt to the extentotherwlseexpllcrtly stated in our report, we do not express anyform of assurance concluslon thereon. Our responslbillty 15 to read the other Inforn￿tIOn and. In dolng so, conslder whether the other Informatlon Is materlally inconslstent wrth the financial statements or our knowledge obtained in the aud￿ or otherwlse appears to be materlèlty mlsstated. If we Identify such material incon515tencies or apparent materlal mlsstatements, we are requlred to deternilne whether there 55 a materlal mlsstatement In the financial statements or a materlal mlsstatement of the other informatlon. If, based on the work we have perfornied. we conclude that there is a material misststement of th15 other Information, we are requlred to report that fart. We have nothSn8 to report In thls regard. Oplnlon on other matter w•s¢rlb•d by th• Companles Acl 2(K16 In our opinitin, based on the work undertaken In the course of the audlt: the Informatlon 8lven In the dlrector< report for the financial year for whkh the flnanclal statements are p￿Pared ts consistent w5th the financlal statements; and the dlrectors, report has been prepared In accordance wlth appllcable le8al requlrements. M•tt•rs on whlth we ar• requlred to r•port by ¢xwl In the Ilght of the knowled8e and understsndln8 of the Trust and Its envlronment obtslned In the course of the audlt, we have not Identif￿d material mlsststements In the directors. report. We have nothlngto report in respert of the followln8 matters wherethe Companles Act 2￿6 requlres us to report to you rf. In our opinion: adequate accounting records have not been keptor returns adequate for ouraudlt have not been received from branches not vislted by u5: or the financial statements a￿ not in agreement with the accountln8 records and returns; or certain disc105ures of dlrectorf remuneratlon Specif￿ by law are not made: or we have not received all the Inforn)atlon and explanations we requlre for our audr(. or the dlrectors were not entitled to prepare the financial ststements In accordance wtth the small companies regime and take advants8e of the small companle5 exemption In preparln8 the dirertors, report and take advantage of the small companbes exemptlon from the requlrement to prepare a 5trate8lc rey)rL In addition. we have nothln8 to report in respect of the followln8 matter where the Houslng and Re8enerition Act 2008 ￿qUI￿$ us to report to you rf, in our opinion: a satisfactory system of control overtransattions has not been maintsined. 19 Wlckham Community Land Trust A Registered Charty and Company Limited by Guarantee Trustees, Report & Financlal Statements for the year ended 31 March 2023 Company Re8. No: l￿fI)8621 Charlty Number. 1134897 Independent Audltorfs Report to the Members of Wlckham Communlty Land Trust (continued...) Dirertorf respon￿bIlItIeS As explained more fully in the dlrettorf responslbllltles statement set out on pa8e5 16 and 17, the dlrectors (who are also the trustees of the charitable company forthe purposes of company lawl are sponsible for the preparation of thefinancial statements and fr>r being satirfied that they8ive a true and fair view, and for such Internal control as the dlrectors detemilne are necessary to enable the preparation of flnanclal ststements that are free from material mlsststemenl whether due to fraud or error. In preparln8 the flnancial statements. the dlfertors a￿ responsible for assessing the Trusvs abllity to contlnue as a going concem. dlscbsln& as applicable. matters related to 8oln8 wncern and using the going concern bas15 of accountin8 unless the dIrec￿rS either Intend to Ilquldate the Trust or to cease operatlons. or have no rea15stlc atternatl¥e but to do so. Audttorfs r•sponslbllltles for th• •udlt of the flnandal statements Our oblertlves are to obtsln reasonable assurante about whethef the financlal statements as a whole are free from materlal mlsstatement. whether due to fraud or error. and to Issue an audltorfs repprt that Includes our oplnlon. Reasonable assuran￿15 a h*h level of assurance, but Is not a guarantee thatan audit conducted In accordancewith1&4s IUKI will a￿ayS detett a materlal mlsststement when It exlsts. Mlsstatements can arfse from fraud or error and are considered materlal If, Indlvldually or In the aggregate, they could reasonabty be expected to Inftuence the economlc declslons of users taken on the ba51s of these flnandal st*ements. The oblectlves of our audlL In respect to fraud. are to Identlfy arbd assess the rlsks of materlal misstatementof the flnandal ststements duetofraud. to obtaln sufflcient approprlate audlt evldence re8ardSng the assessed rlsks of material mlsststement due to fraud. through de51gning and implementin8 approprlate resp¢)rtses and to respond appropriately to fraud or 5uspetted fraud identlfied durfng the audit. However, the primary responslblllty for the prevention and detertlon of fraud ￿$ts with both those charged wlth governance of the entlty and management. In identifylng and assessing rlsk of materfal mlsstatement in respert of Srre8ularltie5, Indudin8 fraud and non-compliance with laws and regulations, Our procedures include the followin8.' The engagement partner ensured that the engagement team collectNely had the approprlate competen￿. capabllltles and skllls to Identrfy or recognise nonrthe and total comprehensl¥e Incorne 14 122,4551 The results relate wholly to continuln8 actNrtles. The accompanyin8 notes form part of these financlal ststements. The financlal statements were approved and authorlsed for issue by the Directors on 18th September 2023 and 5i8ned on thelr behalf by Nlcol Holladav Chairman & Dirertor Geoffrey Phillpotts Director 23 Wickham Community Land Trust A Registered Charity and Company Limited by Guarantee Trustees, Report & Financial Ststements for the year ended 31 March 2023 Company Reg. No: 06608621 Charity Number. 1134897 Statement of Financial Position As at 31 March 2023 31 March 2023 31 March 2022 Note Fixed assets Tangible fixed assets 2.244.311 686,253 Cuffent assets Prepaid expenses Cash at bank and in hand 395 87,208 87.603 3,969 531,572 535,541 Credltors - Amounts tslllng due within one year 131,116) {226,526) Net current assets 56A87 309,015 Total assets less Current Ilabllltles 2,3(N).798 995,268 Credltors - Amounts fallin8 due after more than one year Provlslons for Ilabllltles io (1.959,239) (632,349) 13 112.163) 111,068) Total Net assets 329,396 351,851 Reserve$ Income and expenditure reserve 14 329,396 351,851 Total Reserves 329.396 351.851 These accounts have been prepared in accordance with the provlslons applicable to companies subject to the small companles, re8ime. The financlal statements were approved and authorised for issue by the Dirertors on 18th September 2023 and are signed on their behalf by Nicol Holladay Chairman & Director Geo rey Phillpotts Director The notes on pages 25 to 35 form part of these accounts 24 Wickham Community Land Trust A Registered Charlty and Company Umlted by Guarantee Trustees, Report & Financial Statements for the year ended 31 March 2023 Company Reg. No.. C6608621 Charrty Number. 1134897 Statement of Cash Flows For the year ended 31 March 2023 Net cash generated from operatlng actpiities 27.965 17,452 Cash Flow from Invesllni Aeiivltl Interest received Purchase of houses for rent 78 11,579,160) 18 Cash Flvw from Fln*ndryActl¥ftles Grants recelvedllrepardl New 5ecLtred loans Repayment of borrowln8S Interest pald and other flnance c*)sts 35S,IMI 794,160 18.3281 134,0791 {1.3c(II 17,7261 Net ¢han8e In cash ar¢d cash equfvalents (W.364) Gish and cash equlvalents at start of yeai 531,572 523,128 Cash and cash equfvalents at end of year S￿,5n Wlckham Community Land Trust A Registered Charity and Company Llmited by Guarantee Trustee< Report & Finanual Statements for the year ended 31 March 2023 Company Re8. No: 06608621 Charity Numl*r: 1134897 Statement of Changes In Reserves I￿orne and expendltuwe Tot*1 At l Aprll 2021 Surplus for the year Total comprehensl¥e Income At 31 Mar¢h 2022 and l Aprll 2022 Deficivsurplus for the year Tot*1 compr•h•nslve Incom• At 31 Marth 2023 346,503 351￿51 122,4551 122,4551 329396 351,851 122,4551 122,4551 329,396 Wickham Community Land TNst A Registered Charity and Company Limrted by Guarantee Trustees. Report & Financial Statements for the year ended 31 March 2023 Company Reg. No: 06608621 Charrty Number. 1134897 Notes to the Flnanclal Statements l. Accountln8 ￿lIdeS al Legolstotus Wickham Communlty Land Trust Is ￿giStered under the Companies Art 2006 a5 a company limited by guarantee Incorporated In England and Wales. It Is re8lstered with both the Charity Commission and Homes En8land a5 a Registered Pn)vlder and 15 a publrc benefft entlty. Its registered office is Byme Runclman, The Square. Wlckham. Fareham. Hamp5hlre. P017 5JT bl Bosis ofpreparotlon The flnanclal statements have been prepared under the historic c05t con¥entlon on the goin8 concem basls In accordance wlth the Ststement ol Recommended Pract1￿ for sodal houslng provlders known as the Housing SORP 2018 In accordance wlth the Accountlng Dlrectlon for prlvate realstered provlders of sodal houslng In En8land 2019 In accordance wfth the Charittes Act 2011 In accordance wlth appllcable UK Generally Accepted Accountlng PrInc5p￿s IUK GAAPI accountSn8 standards, Includln8 Flnancknil Rep)rtln8 Standard 102 IFRS 1021 Sn accordance wlth the Companies Acts 2(K)6. The flnanclal statements are presented In sterl]n8 whlch Isthe fvnrtlonal ojrrency of the Tft￿ and are rounded to the nearest pound. As the Company Is è charlty, the wordln8 ofthe Stat￿oryforn)ats requlrtd bythe Companles Act 2006 has Lwn approprlately amended In order to 8l¥e a true and falr view. The prlnclpal aceountlng pollcles adopted In the preparation of the financl81 statements Jre setout below. ¢1 Slqnffjcantjudoements In applyln8 the varlous accountln8 ￿lIdeS rethnt to soclal landlords. the trustees have determlned to categor55e 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 prfces have rlsen slnce the houses were acquired by the trust this means that they are shown in the accounts below ￿rket ￿lUe. dl KeyAssumptlons ondsources oAestlmqtlon uncertolnty The trustees consider that there are no si8nificant areas of uncertainty in the assumption5 they have made that would be Ilkely to cause a materlal change to carryln8 value of any assets or liabilitie5 over the next year. 27 Wickham Community Land Trust A Reglstered Charity and Company Limited by Guarantee Trust￿ Report & Financlal Statements forthe year ended 31 March 2023 Company Re& No: 06f4)8621 Charlty Number. 1134897 Accountlry polld•s (contlnuedj el Funds strurture Unrestricted funds are available for use at the discretion of the Trustees In furtherance of the 8eneral objectlve5 of the charity. Deslgnated fvnds are unrestrlcted funds eannarked bythe Trustees for partlcular purposes. Restrlcted funds are subjerted to restdctions on their expenditure imposed by the donor or through the term5 of an appeal. fj Turnover Turnovercomprlses rerrtal Income rece￿able In the year. serylceth?r¥e5 rece￿able In the yearand Income from Shared ownershlp flrst tranche sale5. Income from first tranche sales Is ￿¢08nIsEd at the polnt of legal completlon of the sale. gl Expendlture Expendlture Is reco8nlsed on an 4¢cNals baslk h) Flxed ossets Hou51ng Propertles The company holds fourteen propertles a￿lIable for rent and four propertles avallable for shared ownershlp. Flxed assets are stated at cost bess accumulated depreelatlon. Depreclotlon Freehold land Is r￿t depTrclated. The company separately identlfies the major components whlch comprfse its housln8 propertles and char8e5 (lepreclatlon so as to wrlte down the cost of e￿ c¢)mponent to ￿ esUm•ted residual Value. on a strai8ht-Ilne basls. over Its estimated Ltseful economlc Ilfe. The company depreciate5 the malor components of its housin8 propertles overthe followlng ￿me5Cale5 Structure years 60 years 20 years 30 years 15 years 30 year5 20 years 30yeats Roof Kltchen Bathroom Boiler Heatin8 System Wlndow5 & Doors Electrics Wickham Community Land Trust A Registered Charity and G)mpany Limlted by Guardntee Trustees, Report & Financial Statements for the yearended 31 March 2023 Company Re8. No: 0661)8621 Charlty Numl*r. 1134897 Accountlng polldes fcontinuedj Impoirn7ent Impairment review5 are carrled out as and when evldence comes to light that the recoverable amount of a functlonal fixed asset Is below its net book value due to damage. obsolescence or other relevant factors. 11 ShoredoWne￿hlPprOpertles Shared ownershlp properties are spltt pro1￿lOn311Y between current and fixed assets based on the element relatin8 to firsttranche sales, Theflrsttranche proportlonls classed a5 a current asset and related sale proceeds Included In turnover and the remainin8 element is classed as fixed assets and Included In housln8 propertles cost, le$5 any pro¥lslons needed for depredatlon or Impaim*nL Jl Soclal Houslng Gmnt Soclal hou51ng 8rant ISHGI Is reCeIvab￿ from Homes England. Under SORP 2018 the company has adopted the accruals model for the reco8nStlon of government Krant and Is requlred to account for such grants a5 deferred Income and to take a port5on of the 8rant to inwme each year. Grants relating to housln8 propertles are reco8nlsed In Income on i systematlc basts over the useful economk flfe of the housin8 property structure. kj Debtors ondcredltors due wlthln t>ne Year Debtors and credltors recelv•ble or payable ¥Athln ¢)ne ￿al, and wtth no stated Interest rnte. are Inltlally recorded at transartlon prke and are subsequently measured at the undlscounted amount of the cash or other conslderatlon expected to be pahs or rec¢lved. l? Loons ond borrowlnqs Loans and borrowlny are Inltlally rtw8n15ed •tthe transactlon prlce Indudlng transactlon costs. Subsequentlyi they ère measured at amortlsed cost usln8 the effectl¥e interest rate method. less impalrment. The Trust Is In recelpt of two loans wlth Interest rates below the prevalllng market rate of InteresL These loans are not repayable on demand and are for the purposes ol fvrtherln8 the objectlves of the publlc benefft entlty or publlc benefit eniSty parent and are therefore accounted for as conce551onary loan5. These loans are Initially measured at the amount recefved and In subsequent years the carryin8 amount of thest loans is adjusted to reflect any accrued Interest payable. m) ProvtslonsfvrLlobllltles Provlslon5 are reco8nlsed when the Trust has an ob1ryt￿n * the balance sheet date as a r￿ult of a past even( It Is probable that an oufflow of economic benefftswill be requlred In settlement and theimount be rellably estlmated. 29 Wickham Community Land Trust A Registered Charity and Company ￿rnited by Guarantee Tru5tees' Report & Financial Statements for the year ended 31 Marth 2023 Company Re8. No: 06608621 Charity Number. 1134897 2. In¢om• and Expendltyr• from Sodal Lthg5 2023 2022 Turnover Affordable homes rental Sncome Intermedlate rental income Shared Ownershlp rentsl income Government grant taken as Income Homes England revenue grant Charges for support 5ervlces 35,364 31,018 15.359 9.3C 3L697 14.215 3.7(Ml {1.3￿) 2.115 92,862 50.427 Expendlturn Maintenance costs Insurance Vold costs Property Management Costs Other costs 125,6421 17.0941 1171 15,1031 144,6071 13.3741 14,1601 2.6621 127,1751 182,463) 137.3711 Rental Income Is stated net of Identlfiable St￿Ce charys. 3. Int•r•rt rttel¥abl• •nd oth•r Ino)m• 2023 Interest recelvable Insurance clalms Donat1￿5 & grants recelved 18 4. Surplus on ordlnary artlvltl Thls1$ stated after chargin8'. Audltorfs remuneration- for audbt 5ervlces Audltorfs remunerdtion- norHudit serwces Depreclatlon 4.950 3£ 12.302 2L102 Wickham Communtty Land Trust A Regi5tere(i Charty and Company Limrted by Guarantee Trustee5' Report & Financial Statements for the year ended 31 March 2023 Company Reg. No: 06608621 Charlty Number. 1134897 5. Taxatlon As a ¢harlty, WCLT Is exempt from tsx on Income and 8alns falllng wlthln section 505 of the Taxes Act 1988 or $256 of the Taxation of Chargeable Gains Alt 1992 to the extent that these are applied to its charltable objects. No tax charges have arf5en In the Charity. & K•y m•nagem•nt p•rsonnel remun¢rallon employ••s Key management personnel neither recefved nor wafved any remuneration durln8 the year.12022.. £nlll. The charity had no employees in the current or prevlous year. 7. T￿n￿ble Ilxed Freehold Land Frnehold Land Freehold L•nd and and and Bulldlw- Bulldlny- BuIldI￿S- Affordable Intern￿1•¢• Total (knershlp At beglnnlni of yèar Addltlons 310,166 805,173 1,579,160 I￿79,160 At end of year 1579,160 495.1x17 310.166 2,384,333 At be8innln8 of year Charge for year 174,5891 17,7161 (44.3311 1118,9201 14.5861 121.1021 At end of year {82,3051 148.9171 1140,0221 Netbook volue At 31* M•￿h 2023 &570JfjO 411702 261249 2344Jll At 31" March 2022 420A18 265,835 686.253 The above assets, wtth a net book value of £1244,311 are pled8ed a5 securfty a8alnst the Trusvs loans. 31 Wickham Communlty Land Trust A Registered Charty and Company Limrted by Guarantee Trustee< Rewrt & Financlal Statements for the year ended 31 March 2023 Company Reg. No: 06608621 Charlty NLtrmber: 1134897 knpald expenses Insurance costs Other 3,879 395 395 3,969 9. Credltorn- Amounts lallln8 due wlthln one y• 2023 2022 Bank Loans {note 121 Other creditors Accrued expenses Accrued servlce charges payable Deferred Income from Homes En8land 8rant Deferred grant from Wlnchester Clty Coundl 10.729 4.943 4,950 1.194 6,687 7,191 3,7 31.116 226.526 10. Credltors- Amounts falllni du• •ft•r more than y••r 2023 8ank loans Inote 12} Loans from other Instltutlons (note 121 Deferred Income from grants {note ill 998.316 85.290 875,633 217.022 84,794 330.533 1,959.239 632,349 The loans from other In5tltutlons are concessSonary loan5 with 5nterest rdtes below the prevalllng market rate. Witkham Community Land Trust A Reglstered Charity and Company Limited by Guarantee Trustees, Report & Financial Statements for the year ended 31 March 2023 Company Re& No: [￿608621 Chaiity Number. 1134897 11. Deferred Grant Income At l April Received In the year Released to income in year 539,233 355,(LMI 31x1 542.933 At 31 March Amounts to be ￿leaSed w6thln l year Amounts to be released In more than I year 9.3txi 208.71X) 53 IZ. B•nk loans and loanj fyom rther Instltudo 2022 Oue withln one year and on demand Due after one year less than two years Due after two year5 but less than five yea Due after more than five years 10.729 11,550 39,851 6.687 6,942 22,455 1.094.335 308.502 The a88re8ate amount of debt secured upon the affordable rental propertles. Intemiedlate rèntal propertles and the share of shared owner5hlp propertles retalned by the trust Is £1.094.335 The loans bear Inte￿$t at 3% abo¥e Bank of En8land base rnte. One loan Is Interest onlyfor the first io years. Due to recent increases In Interest rates, the Trust Is not currentty compliant wlth loan covenarrts whlch requlre it to maintaln Debt Service Cover of at least 1.25..1 for one lender, and I:1 for a second lender. This affects loans wlth a Carrying value ot £779.299. The Trust has advlsed the lender of the Impart of Interest rate rlses as they have been announced and at the date on whlch these accounts were approved the Trust remains in breach of these covenants, howeverthe affected lenders have not requestrd any renegOtiat￿n of the agreed terms of the affetted loans. 13. Pro¥l$lons for Ilabllltles and ch*ry 2023 Provision for future overhaul .163 11,068 Provlslons for liabilitie5 and charges comprise of arn(￿nts set aside forthe fvture overhaul of the propertles. 33 Wickham Community Land Trust A Re8i5tered Charity and Company Limited by Guarantee Trustees. Report & Financial St*ements for the year ended 31 March 2023 Company Re8. No: 06frfJ8621 Chartiy Number: 1134897 Reserves Unreslrfrted 8eneral T¢>tsl reser¥es Balance as at l April 2022 Surplus Ildeficitl for year 351.851 122.455} 351,851 532,934 At 31 March 2023 329,396 884,785 15. Stst•m•nt of C•sh FlovA from Oper•tln¢AclMlles 2022 Surplus/ldeflcltl for the year Adjustment for non-cash Items Depreclatlon Amort15atlon of govemment grant Decrease/llncrea5el In prepayments IDecreaselllncfea5e In credltors IncfeasellDecreasel In loan5 InC￿3$e In provlslons Adjustment for Investln8 and finJndn8 actlvlty Interest payable and other finance costs Grants and donations IrecelN*d)Irepatd Interest received 122,455} 5.348 21.102 {9.3￿) 3,575 153) 12,302 13,7001 12211 195 16,5751 L095 1.095 34.079 7,726 1,3 1181 Net cash generated from Operatlng Ktmtles 27,965 17,452 15a Anal￿% of ch•nys In v*t d•bt 2023 Fl¢)ws Chanys Lon8 term borrow5ngs Total liabilities 308,502 308,502 785033 785,833 1,094,335 1,094,335 Cash and cash equivalents Totsl net debt {531.5721 444,364 {223.0701 1.230.197 {87.2081 I,￿7,127 Wickham Community Land Trust A Re8lStered Charity and Compary ￿rnited by Guararrtee Trustees. Report & Financial Statements for the year ended 31 March 2023 Company Re8. No.. 06608621 Charty Number. 1134897 16. A¢commodatlon In manqement At the end of the year, accommOdatk￿ in management foreach type of property wa$ as follows: 2022 Shared ownershlp Intermediate rent Affordable rent 17. Com￿nY Ilml¢•d by warnnt•• Wlckham Communlty Land Trust Is a company Ilm5ted by 8uarantee and has no share capital. As at 31st March 2023 there were 10 Itenl members. Every member promlses. If the Company is wound-up. to contribute such sum Inot exceedlng ÉIOI as may be demanded of hlm or her towards any defic￿. 18. Dlr•ctor Inft>rm•tlon No remuneratlon was paid to the Dtrectors durln8 the year12022: £nlll. 19. C•plt•l Mmmltm•rrts At 31st March 2023 there were no capltal commltments12022: none). 20. ftelat￿ p•rtl Durlng the year, expenses of £345 were relmbursed to I trustee {2022: Énlll. No expenses were relmbursed to a company In whlch a trustee has an Interest. 21. UltlmAt• controlllnl pjrty Wickham Communlty Land Trust Is ultlmatety controlled the board of Trustees. 35