OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity registration number 1139580 Company registration number 7277557 Homes and Communities Agency registration number 4695

Hackney Parish Almshouses Charity (Formerly Dr Spurstowe and Bishop Wood Almshouses Charity)

Annual report and financial statements For the year ended 31 December 2020

Hackney Parish Almshouses Charity

Legal and administrative information

Charity number 1139580 Company number 07277557 Homes and Communities Agency 4695 registration number Directors and trustees Mr Jonathan Jarrett (Chairman) Mr Peter Ottino Councillor Margaret Gordon Mrs Joannie Andrews Mr Datoru Ben Paul-Worika Rev Al Gordon Rev Andrew Wilson Mrs Olivia Gordon Mr John Parmiter Ms Jacqueline Driver Councillor Penny Wrout Clerk to the trustees The Trust Partnership Registered office 6 Trull Farm Buildings Tetbury Gloucestershire GL8 8SQ Independent auditors Dunkley’s Woodlands Grange Woodlands Bradley Stoke Bristol BS32 4JY Bankers HSBC Bank Plc 2 Cheapside High Road Wood Green London N22 6HJ

Hackney Parish Almshouses Charity

Contents

Page
Report of the trustees 1 - 7
Report of the auditors 8 - 10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the accounts 15 - 24
Detailed statement of financial activities 25

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020

Introduction

The Hackney Parish Almshouses Charity is an incorporated Charitable Company Limited by Guarantee. Prior to incorporation, the charities comprised two separate entities: one known as Dr Spurstowe and Bishop Wood Almshouses and the other known as Norris and Mongers Almshouses. The Hackney Parish Almshouses Charity provides forty-six homes located on three separate sites within the London Borough of Hackney.

Mongers almshouses are located near the church of St John of Jerusalem. They were originally created from a bequest from Henry Monger in 1669. The almshouses were rebuilt in the 1840’s, with funds from Sir John Cass's Foundation, and later extended in 1997.

Norris House almshouse was founded in 1857 in memory of South Hackney's first rector, Henry Handley Norris (1771–1850). Norris was a leading member of the Hackney Phalanx, a group of early nineteenthcentury Anglican High Churchmen. The almshouses were rebuilt in 1967 and subsequently refurbished in 2002.

Dr Spurstowe House is an almshouse comprising thirty-one flats located in Navarino Road, central Hackney and is the modern-day culmination of two historic charities each with their own almshouses. In 1666, the Reverend Dr William Spurstowe, vicar of Hackney, built almshouses in Mare Street and his brother, Henry, endowed the Charity with additional land later gifted, with the almshouses, to the manor of Kings Hold in 1667. The Dr Spurstowe Charity took over administration of the historic Bishop Wood Almshouses, Lower Clacton in 1906. Originally these almshouses were built in the late 1600’s with funds left in the will of Hackney born Thomas Wood, Bishop of Lichfield. They were sold in 2015 to help fund the new almshouses in Navarino Road.

Objectives and Activities

The object of the Charity is the provision and maintenance of almshouse accommodation for local people in financial need. In exceptional circumstances, a resident may be appointed who meets the financial need criteria but lives outside the area of benefit. The number of residents appointed under this exception must not exceed one third of the total number of residents.

Trustees are pleased to report that the agreed objectives above have been satisfied and a healthy financial position has been maintained to allow future planning and sustainability.

Public Benefit

In carrying out the Charity’s objectives, Trustees have had regard to the Charity Commission’s guidance on Public Benefit. Given that the purpose of the Charity is the relief of poverty, only the benefit aspect of “public benefit” requires satisfying in an identifiable way. Trustees are satisfied that the continuous demand for the affordable housing demonstrates this test is met.

Achievements & Performance

Maintaining Almshouses

Providing and maintaining the almshouses is the main activity of the Charity. In the period up to 31 December 2020, Property Costs comprised 56% (2019 58%) of the total expenditure with the balance split between governance costs 28% (2019 23%) and loan interest 16% (2019 19%). Examination of the Property Costs shows two thirds £82,506 (2019 £80,219) was spent on Repairs and Maintenance which includes the provision of a warden, cleaning and gardening. Trustees consider the provision of a warden as central to resident welfare. Almshouse Trustees have a duty of care towards the beneficiaries which is considered in more detail below.

The Trust Partnership provides the day to day property management and resident welfare function. Responsive repairs are reported by the resident to the administrator and outsourced to a variety of sub-

Page 1

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020

contractors. Progress is monitored and reported to Trustees at quarterly board meetings along with Management Accounts showing expenditure. Cyclical maintenance and planned repairs are budgeted for and reported on within the Management Accounts.

Provision of Almshouse Accommodation

Hackney Parish Almshouses Charity is a social housing provider registered with, and regulated by, the Regulator of Social Housing as well as the Charity Commission. The Charity is a member of The Almshouse Association.

Trustees are aware of their duty of care to the residents as beneficiaries of the Charity and under the Care Act 2014. Resident welfare, including safeguarding, is central to the activities within the Charity and the provision of a warden acting as a good neighbour, visiting residents regularly and calling on them monthly to carry out safety checks such as smoke detector testing allows Trustees to monitor resident welfare.

Day to day management is carried out by The Trust Partnership, who employs the warden and provides clerking and administrative functions. Within the breakdown of expenditure, the fees payable to The Trust Partnership are split into management and clerking functions representing 67% (2019 63%) of the Governance Costs. The warden’s costs are accounted for within Property Costs. Reports on the almshouse management are made quarterly to the Trustees’ board meeting. Decisions are made by the The Trust Partnership under an approved delegated authority procedure.

The Pastoral Committee, made up of Trustees with delegated authority for resident allocation and social functions, meets regularly to ensure the Trustees’ duty of care is monitored and upheld. Reports are made to the quarterly Trustees’ board meetings. Residents meetings are held at least once a year and a regular newsletter is produced. Christmas and mid-summer resident parties are part of the social calendar and paid for by the Charity. In addition, the Legal & Governance Committee meets to ensure regulatory compliance and the Property Committee oversees property management.

Relief of Financial Hardship

The governing documents, most notably the Articles of Association dated 19[th] January 2017, allow for the Trustees to make it a condition of a resident’s appointment that contributions to the maintenance of the property should be made. The contribution, known as the Weekly Maintenance Contribution (WMC), is set by Trustees annually in accordance with the formula given by the Regulator of Social Housing. Trustees also request a monthly Service Charge to cover non-housing related expenditure. This charge is reviewed annually based on the actual costs within the previous year.

The level of WMC and Service Charge is set within the context of social housing. Residents unable to pay are signposted to the Borough of Hackney for assessment and assistance.

Financial Review

The Financial Statements

The Financial Statements show total expenditure on charitable activities of £222,884 (2019 £222,796) of which £125,624 (2019 £129,836) relates to Property Costs which have been itemised above in Maintaining Almshouses. Governance costs represent £62,343 (2019 £51,464) which includes outsourced clerking, administration and accountancy fees as well as professional fees and trustee insurance.

Page 2

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020 (continued)

The income for the year is £328,564 (2019 £328,040) of which £307,494 (2019 £302,218) is from the Weekly Maintenance Contributions (WMC) and Service Charges paid by the almshouse residents. The Charity is a social housing provider regulated by the Regulator of Social Housing (RSH). As such the level of contributions must follow the regulator’s guidance and annual increases can only be made within the limits of the formula provided. Service Charges are based upon the actual costs during the preceding year.

Tangible Fixed Assets relate to the three sets of almshouses and are valued at £12,260,504 (2019 £12,261,786) based on valuations in 2015 and 2017 (net of the HCA grant for the building of Dr Spurstowe House). The minor adjustment in comparison to the previous year relates to depreciation of the communal furniture, which does not form part of the property valuation.

Debtors are broadly consistent with 2019, standing at £2,355 in 2020 (2019 £2,448) and is as a result of all WMC arrears being subject to an active recovery plan.

Investment Policy

Fixed Asset Investments are valued at the year-end as £2,564,030 (2019 £2,566,976) and are held as cash or within funds managed by the National Almshouse Association Common Investment Fund (NAACIF) or the Charities Investment Fund (COIF) managed by CCLA. The Trustees’ objective is to invest funds in order to maximise financial return and capital growth within an acceptable risk, to balance the income and capital return

Trustees are considering whether to redevelop or refurbish one of three current almshouse blocks. A final decision has yet to be made and, as a result, the funds held within COIF are held as cash for the purposes of liquidity. Trustees do not consider this to be a significant risk in the form of lost income given the current economic climate as a result of the pandemic and the imminent decision regarding the property.

The proportion of the residents’ contributions representing Extraordinary Repairs has been invested in COIF and NAACIF.

Reference in the Financial Statements to South Hackney Parochial Charity (SHPC) Dowry of £179,152 refers to a Designated Fund set up specifically to assist HPAC to undertake repairs and maintenance of the Norris and Monger almshouses when they were transferred in March 2017. Funds used from this dowry, originally £270,000, are expendable.

Reserves

Funds reported within the Balance Sheet are considered in detail in the Notes accompanying the Financial Statements (Note 9). Unrestricted general funds of £531,767 are considered enough to meet almshouse maintenance in the short to medium term. As at 31 December 2020, the Charity had total unrestricted funds amounting to £599,633, restricted funds amounting to £681,471 and endowment funds (predominantly comprising the almshouse buildings) of £12,632,411. Trustees are satisfied that their reserves criteria have been met.

Page 3

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020 (continued)

Value for Money Metrics

The Regulator of Social Housing requires all registered providers to report on the following metrics:

Metric
2020
2019
1
Reinvestment
1.02%
1.06%
2
New supply delivered
0
0
3
Gearing
8.2%
8.6%
4
EBITDA MRI (EBITDA Major Repairs Included) Interest cover %
50%
65%
5
Headline Social Housing costs per unit
2,731 2,823
6a
Operating Margin (Social lettings)
40.9%
43.0%
6b
Operating Margin (Overall)
32.2%
32.1%
7
ROCE%
0.76%
0.76%

The metrics do not lend themselves to comparison with other small registered providers and benchmarking would be of most relevance with data from other almshouses. Small changes can have a disproportionate effect upon the figures.

Preliminary conclusions from the metric above indicate that the costs per unit for repairs and maintenance exceeded the budget of £1,913 based on The Almshouse Association’s outline budget. This is, in part, due to exceptional repair costs for Dr Spurstowe House, a relatively new build and repairs at Norris and Mongers almshouses, being older properties.

Risk Management

The Risk Register is considered by Trustees at every meeting and the performance of mitigating measures is monitored.

The pandemic has not affected the demand for almshouses but there is an impact on those residents with changed circumstances finding it difficult to pay the WMC from Housing Benefit. The impact on the charity’s income is minimal and is hampered by a failure of the computer system at Hackney Borough following a major cyber attack.

Recent correspondence from M&G Investment managers has confirmed that the income and capital yield from investments is likely to continue to be adversely affected in the next year but the asset allocation will benefit from an improving UK equities and bond market.. The reserves within the Charity are considered sufficient to ensure continuation of the Charity’s activities within the short to medium term.

Notwithstanding the current economic uncertainties, the risks facing the Charity are considered in terms of governance, finance, operational and external factors, as follows:

Governance

The impact of the government’s care at home policy and the inclusion of social housing providers within the Care Act 2014 has introduced an additional responsibility on Trustees to ensure, as far as possible, that residents are supported. Measures such as warden provision and resident-related policies help to mitigate

Page 4

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020 (continued)

the risk. During the year amended terms of reference for the Pastoral Committee seek to address specific resident issues as well as the allocation of residents.

Additional responsibilities imposed by regulatory bodies are closely monitored and addressed.

During the year Trustees began a strategic review of the Charity’s activities and an Away Day was held in February 2021. See Plans for The Future.

Finance

The income from charitable activities, investment income and interest received continues to exceed expenditure but regard is had to the potential threat to the value of, and income from, the investment portfolio as a result of general market forces and recently from the Covid-19 pandemic in particular.

Weekly Maintenance Contributions alone are just sufficient to sustain average yearly spend on property upkeep and governance. Increases in contribution charges are subject to regulation to ensure beneficiaries are not placed into hardship by excessive charging above local housing allowance targets. Resident arrears are contained through prompt action and signposting support.

Trustees are mindful of the interest payments on the loan for the redevelopment of Dr Spurstowe House almshouses. At this time current returns on investments are not sufficiently low to consider repayment (in part or whole) but this is kept under review.

Trustees consider that reserves are sufficient to ensure the long-term sustainability of the Charity.

Operational

Minimising the loss of income from voids is achieved by efficient turnaround of vacant almshouses and maintenance of a register of eligible applicants.

External Factors

The consequences of changing government policy especially in relation to unforeseen factors, such as Covid19 or as a result of general housing or social care-related legislation, are monitored. Trustees are also aware that, over time, the expectations of the beneficiary group may change especially in relation to the property facilities. As longevity increases, demand for disabled access increases. Trustees are mindful of the changing requirements which are considered within the strategy review.

Plans for the Future

Over the past two years, Trustees have discussed the potential for redeveloping Norris House which was built in the 1960’s, updated in 2002 and now requires further refurbishment. During 2021, Trustees have decided to explore opportunities for working in partnership with a local almshouse which is also looking to expand the number of units held. In 2020 a quinquennial survey identified a number of repairs due within the five-year cycle. These are to be managed by a local surveyor to ensure economies of scale and a tender process. The expenditure is not considered sufficient to impact on the possibility of rebuilding Norris House and feasibility studies have commenced.

Page 5

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020 (continued)

Structure Governance and Management

The Articles governing the Hackney Parish Almshouses Charity specify that there shall be between eight and fourteen Trustees who will act as both Trustees and Members of the Charity. The Trustees who have served during the years are set out on the legal and administrative information page.

The Trustees are appointed as follows:

The Chair and the Clerk are responsible for inducting new Trustees which involves awareness of a Trustee’s responsibilities, the governing documents, administrative procedures and the history of the Charity.

The 2017 Charities Code of Governance provides the basis for Trustee performance.

All Trustees are volunteers and are not remunerated.

Key Management Personnel

Trustees comprise the key management of the Charity and are responsible for the overall direction and running of the organisation. Trustees employ The Trust Partnership to manage the Charity’s day to day activities and to provide administration assistance to the Trustees.

Page 6

Hackney Parish Almshouses Charity

Trustees annual report for the year ended 31 December 2020 (continued)

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

So far as the trustees are aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the trustees have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

Approved by the Board of Trustees and signed on its behalf

……………………………………………………..

Jonathan Jarrett

Chair

Date:

Page 7

Hackney Parish Almshouses Charity

Statement of financial activities For the year ended 31 December 2020

Report of the Independent Auditors to the Trustees of Hackney Parish Almshouses Charity (Registered number: 7277557)

Opinion

We have audited the financial statements of Hackney Parish Almshouses Charity (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 trustees' 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 charitable company'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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

In connection with our audit of the financial statements, 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 8

Hackney Parish Almshouses Charity

Statement of financial activities For the year ended 31 December 2020

Report of the Independent Auditors to the Trustees of Hackney Parish Almshouses Charity (Registered number: 7277557)

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors 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 trustees determine is 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 trustees are responsible for assessing the charitable company'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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override of controls, and revenue recognition. We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

Page 9

Hackney Parish Almshouses Charity

Statement of financial activities For the year ended 31 December 2020

Report of the Independent Auditors to the Trustees of Hackney Parish Almshouses Charity

(Registered number: 7277557)

Audit response to risks identified

Our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Dunkley's Chartered Accountants Registered Auditors

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Woodlands Grange Woodlands Lane Bradley Stoke Bristol BS32 4JY

Date: .............................................

Page 10

Hackney Parish Almshouses Charity

Statement of financial activities For the year ended 31 December 2020

Unrestricted Restricted Endowment Total Total
Notes Funds Funds Funds 2020 2019
£ £ £ £ £
Income & expenditure
Income from:
Maintenance Contributions 282,930 24,564 - 307,494 302,218
Investment Income 5,576
 8,619 - 14,195 8,962
Interest Received 4,664 - - 4,664 14,654
Other income 2 2,211 - - 2,211 2,206
Total 295,381 33,183 - 328,564 328,040
Expenditure on:
Activities in furtherance of
the charity’s objectives 11/12 173,611 14,356 -
 187,967 181,300
Loan interest - - 34,917 34,917 41,496
Other recognised losses/(gains) 2,563 34,622 -
 37,185 (109,260)
Total Expenditure 176,174 48,978 34,917 260,069 113,536
Transfers between funds (83,053) 250 82,803 - -
Net income/(expenditure)
and net movements in funds 36,154 (15,545) 47,886 68,495 214,504
Reconciliation of funds 9
Fund balances brought forward at
31.12.2019 563,479 697,016 12,584,525 13,845,020 13,630,516
Fund balances carried forward
at
31.12.2020 599,633 681,471 12,632,411 13,913,515 13,845,020

The statement of changes in equity includes all gains and losses in the year. All incomes and expenditures derive from continuing activities.

The notes on pages 15 to 24 form part of these accounts.

Page 11

Hackney Parish Almshouses Charity

Statement of financial activities

For the year ended 31 December 2020

Comparative Statement of Financial Activities

For the Year Ending 31 December 2019

Notes
Income & expenditure
Income from:
Maintenance Contributions
Investment Income
Interest Received
Other income
2
Total
Expenditure on:
Activities in furtherance of
the charity’s objectives
11/12
Loan interest
Other recognised losses
Total
Transfers between funds
Net income
and net movements in funds
Reconciliation of funds
9
Fund balances brought forward at
31.12.2018
Fund balances carried forward at
31.12.2019		 Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2019
£
£
£
£
282,622
19,596 -
302,218
4,614
8,962 -
13,576
10,040
- -
10,040
2,206
-
-
2,206
299,482
28,558
-
328,040
168,879
12,421
-
181,300
-
-
41,496
41,496
(13,813)
(95,447)
-
(109,260)
155,066
(83,026)
41,496
113,536
(86,176)
250
85,926
-
58,240
111,834
44,430
214,504
505,239
585,182
12,540,095
13,630,516
563,479
697,016
12,584,525
13,845,020

The statement of changes in equity includes all gains and losses in the year. All incomes and expenditures derive from continuing activities.

The notes on pages 15 to 24 form part of these accounts.

Page 12

Hackney Parish Almshouses Charity

Balance Sheet

As at 31 December 2020

Balance Sheet
As at 31 December 2020
Company number:07277557
2020
2019
£
£
£
12,260,504
12,260,786
2,564,030
2,566,976
14,824,534
14,827,762
14,966
122,384
137,350
81,614
81,614
73,085
55,736
984,104
1,038,478
13,913,515
13,845,020
599,633
563,479
681,471
697,016
12,632,411
12,584,525
13,913,515
13,845,020
Notes
Fixed Assets
Tangible assets
3
Investments
4
Current assets
Debtors
5
Bank balances
Current liabilities
Creditors
6
Net current assets
Long term creditor
7
Total assets less current liabilities
Capital and reserves
9
Unrestricted funds
Restricted funds
Endowment funds		 £
29,229
165,786		 2020
£
12,260,504
2,564,030		 £
14,966
122,384
14,824,534 14,827,762
73,085
984,104		 55,736
1,038,478
195,015
121,930		 137,350
81,614
121,930 81,614
13,913,515 13,845,020
599,633
681,471
12,632,411		 563,479
697,016
12,584,525
13,913,515 13,845,020

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Approved by the directors and trustees on and signed on its behalf by:

……………………………………

Jonathan Jarrett (Trustee)

The notes on pages 15 to 24 form part of these accounts.

Page 13

Hackney Parish Almshouses Charity

Statement of Cashflows

For the year ended 31 December 2020

Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities
8
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Net cash used in investing activities:
Change in cash and cash equivalents in the reporting period
Cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2020
£
68,312
4,664
14,356
(43,930)
(24,910)
43,402
122,384
165,786		 2019
£
80,435
10,040
12,421
(43,930)
(21,469)
58,966
63,418
122,384

The notes on pages 15 to 24 form part of these accounts.

Page 14

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

1. Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Hackney Parish Almshouses Charity constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uncertainties about the charity’s ability to operate as a going concern.

1.2 Income

All incoming resources are recognised when the charitable trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured. Investment income from loans and short term deposits is accrued in relation to the period to which it relates. Other investment income from assets held in asset portfolios or current accounts is included when reported as received by the portfolio manager.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. They are analysed between costs of maintaining the properties and governance of the charity. Expenditure includes attributable VAT, which cannot be recovered. Charitable activities - these are costs incurred on the charity trust’s individual charitable activities, including support costs and costs relating to the governance of the charitable trust apportioned to charitable activities.

1.5 Tangible fixed assets, freehold property and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all fixed assets, other than freehold property, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:-

Furniture - at 25% of the reducing balance

The freehold property ‘Dr William Spurstowe House’ is shown at deemed historic cost. The cost of the rebuild of Dr William Spurstowe House as included within the accounts to 31 December 2013 was £3,871,068 less the grant received from HCA of £2,190,000. This was restated in the accounts on transition to FRS 102 (see note 15) to its fair value as deemed cost per section 35.10 (c) of FRS 102. The property was valued in 2014, with an expected open market value for current use as an almshouse, at £3,150,000. No depreciation has been provided on the property on the basis that the estimated residual value would be higher than the current cost. Bishop Wood was sold on 23 January 2015 for £1,437,500. The freehold properties ‘Norris and Monger Houses’ were valued at market value as at 28.07.16 and are included in these financial statements at that value.

Page 15

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

1.6 Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The charity does not acquire put options, derivatives or other complex financial instruments. Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise. Other Investments are included at cost, which is considered to be approximate to their market value.

1.7 Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

1.8 Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

1.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charitable trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide. Provisions are recognised when the charitable trust has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.10 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.11 Cyclical repairs and maintenance

1.12 Extraordinary repairs reserve and routine repairs reserve

An amount from the weekly maintenance contribution is allocated to the extraordinary repairs reserve (Restricted fund). Costs of extraordinary repairs, unless representing improvements to the properties, are charged to the restricted fund in the year in which they are incurred.

Page 16

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

2. Other Income

Solar FIT Income
Other Income		 31.12.2020
31.12.2019
£
£
2,089
2,106
122
100
2,211
2,206

3. Tangible Fixed Assets

Cost or revaluation
At 1 Jan 2020
Less HCA Grant
Additions in year
Depreciation
At 1 Jan 2020
Charge in year
Net cost/valuation at
31.12.2020
Net cost/valuation at
31.12.2019		 Furniture
Norris & Mongers
Dr William
Total
Houses
Spurstowe
31.12.2020
House
£
£
£
£
2,333
2,985,000
11,465,000
14,452,333
-
-
(2,190,000)
(2,190,000)
-
-
-
-
2,333 2,985,000
9,275,000
12,262,333
1,547
-
-
1,547
282
-
-
282
1,829
-
-
1,829
504 2,985,000
9,275,000
12,260,504
786 2,985,000
9,275,000
12,260,786

The charity owns three almshouses, Dr Spurstowe House and the Norris and Mongers Almshouses, formerly of South Hackney Parochial Charity. The Norris and Mongers Almshouses were transferred to the ownership of Hackney Parish Almshouses Charity on 28.07.16. They were not previously valued in the accounts of South Hackney Parochial Charity but have since been valued at an open market value of £2,225,000 and £760,000 respectively. The transfer of the properties, included a dowry of £270,000 for use in the event of the requirement to carry out emergency repairs to the properties. The dowry is included in the restricted extraordinary repair fund within these accounts. Repair costs to the properties have been included in the income and expenditure account in the year in which these were incurred.

Under the terms of the grant received from Homes and Communities Agency of £2,190,000 in respect of Dr Spurstowe House, some or all of the grant may become repayable in the future if certain terms are not adhered to. As at 31 December 2020 no liability has been included within these accounts in relation to this as it is understood all terms have been adhered to as at the date of approval.

Page 17

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

Investments

Market value 31.12.2019
Purchases
Movements in year
Sales
Net investments gains/(losses)
Market value 31.12.2020
Cost 31.12.2020		 NAACIF
COIF
2020
2019
fund
fund
Total
Total
£
£
£
£
792,969
1,774,007
2,566,976
2,416,167
43,930
-
43,930
43,930
-
-
-
-
836,900
1,774,007
2,610,907
2,460,097
(14,356)
-
(14,356)
(12,421)
(37,185)
4,664
(32,521)
119,300
785,359
1,778,671
2,564,030
2,566,976
661,310
1,778,671
2,439,981
2,405,743

5. Debtors

Maintenance contributions in (advance)/arrears
Prepayments
Other debtors		 31.12.2020
31.12.2019
£
£
(4,795)
(5,163)
7,150
7,611
26,874
12,518
29,229
14,966

6. Creditors: amounts falling due within one year

Amounts falling due within one year:
Creditors
Accruals
Bank loan (secured)		 31.12.2020
31.12.2019
£
£
30,635
14,725
40,885
22,967
50,410
43,922
121,930
81,614

The average number of days taken to pay purchase invoices in the year ended 31 December 2020 was 139 days (2019: 76 days).

Page 18

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

7. Creditors: amounts falling due after more than one year

Bank loan (secured) 31.12.2020
31.12.2019
984,104
1,038,478

The bank loan is payable by monthly instalments and is charged at 3% interest above the base rate. The bank loan is secured against Doctor William Spurstowe House (34-40 Navarino Road, London, E8 1AF).

8. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net Income for the reporting period
per the statement of financial activities
Adjustments for:
Depreciation charges
Losses/(Gains) on investments
Dividends and interest from investments
(Increase)/decrease in debtors
(Decrease) in creditors
Net cash used in operating activities		 2020
2019
£
£
68,495
214,504
282
282
32,520
(119,300)
(4,664)
(10,040)
(14,263)
38,209
(14,058)
(43,220)
68,312
80,435

Page 19

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

9. Funds

Unrestricted funds - accumulated
Restricted funds - extraordinary repair fund
Endowment fund - capital		 Sale/
Property
Admin
Revaluation of
2019
expenditure
expenditure
investments
Income
Transfers
2020
£
£
£
£
£
£
£
563,479
(111,268)
(62,343)
(2,563)
295,381
(83,053)
599,633
697,016
(14,356)
-
(34,622)
33,183
250
681,471
12,584,525
-
(34,917)
-
-
82,803
12,632,411
13,845,020
(125,624)
(97,260)
(37,185)
328,564
-
13,913,515

Unrestricted funds – accumulated

The income funds to be used in respect of repairs and insurance and all other charges and outgoings payable in respect of the property of the charity. All charges incidental to the administration and management to be met by the income account.

Restricted funds – extraordinary repair fund

The fund to be used for the extraordinary repair, improvement or rebuilding of the almshouses and other property belonging to the Charity. A transfer of not less than £250 out of the income of the charity to be invested annually in the fund.

Endowment funds – capital

The fund to be used for the cost or provision of new almshouses. The Charity Commission agreed in 2010 that the fund may be used for the rebuild of the current almshouses. Transfers to be out of income account from time to time in such amounts as the Trustees see fit.

Page 20

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

10. Analysis of fund assets and liabilities

Analysis of fund assets and liabilities
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Long term liabilities
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Long term liabilities		 Unrestricted
Restricted
Endowment
funds
funds
funds
31.12.2020
Accumulated
Extraordinary
Capital
Total
£
£
£
£
504
-
12,260,000
12,260,504
521,555
635,250
1,407,225
2,564,030
168,238
26,777
-
195,015
(90,664)
19,444
(50,710)
(121,930)
-
-
(984,104)
(984,104)
599,633
681,471
12,632,411
13,913,515
Unrestricted
Restricted
Endowment
funds
funds
funds
31.12.2019
Accumulated
Extraordinary
Capital
Total
£
£
£
£
786
-
12,260,000
12,260,786
500,692
659,059
1,407,225
2,566,976
124,929
12,421
-
137,350
(62,928)
25,536
(44,222)
(81,614)
-
-
(1,038,478)
(1,038,478)
563,479
697,016
12,584,525
13,845,020

Page 21

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

11. Charitable Activities - Property Costs

Council Tax and
Water rates
Light and Heat
Repairs and
maintenance
Warden, cleaning
and gardening
Insurance
Depreciation
Resident events
Write off of
resident arrears
Council Tax and
Water rates
Light and Heat
Repairs and
maintenance
Warden, cleaning
and gardening
Insurance
Depreciation
Resident events
Write off of
resident arrears		 Unrestricted fund
Restricted funds
Endowment funds
31.12.2020
Accumulated
Extraordinary
Capital
Total costs
£
£
£
£
3,521
-
-
3,521
(1,104)
-
-
(1,104)
68,150
14,356
-
82,506
34,301
-
-
34,301
5,082
-
-
5,082
282
-
-
282
980
-
-
980
56
-
-
56
111,268
14,356
-
125,624
Unrestricted fund
Restricted funds
Endowment funds
31.12.2019
Accumulated
Extraordinary
Capital
Total costs
£
£
£
£
3,761
-
-
3,761
4,376
-
-
4,376
67,797
12,421
-
80,218
33,595
-
-
33,595
4,897
-
-
4,897
282
-
-
282
1,206
-
-
1,206
1,501
-
-
1,501
117,415
12,421
-
129,836

Page 22

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

Charitable Activities – Support and Governance Costs

Almshouse
management
Clerk's
remuneration
Accountancy
Audit/Year End
Accounts
Legal and
professional
Sundry expenses
Bank charges
Subscriptions
Trustee insurance
Almshouse
management
Clerk's
remuneration
Accountancy
Audit/Year End
Accounts
Legal and
professional
Sundry expenses
Bank charges
Subscriptions
Trustee insurance		 Unrestricted
Restricted
Endowment
31.12.2020
funds
funds
funds
Total
Accumulated
Extraordinary
Capital
costs
£
£
£
£
20,213
-
-
20,213
21,342
-
-
21,342
9,509
-
-
9,509
1,800
-
-
1,800
4,524
-
-
4,524
3,095
-
-
3,095
246
-
- 246
949
-
-
949
665
-
-
665
62,343
-
-
62,343
Unrestricted
Restricted
Endowment
31.12.2019
funds
funds
funds
Total
Accumulated
Extraordinary
Capital
costs
£
£
£
£
16,877
-
-
16,877
15,391
-
-
15,391
8,594
-
-
8,594
4,500
-
-
4,500
2,065
-
-
2,065
2,700
-
-
2,700
279
-
-
279
393
-
-
393
665
-
-
665
51,464
-
-
51,464

13. Payments to trustees

No trustees received any remuneration from the charity during the year (2019: Nil). Travel expenses amounting to £nil (2019: £nil) were reimbursed to no (2019: 0) trustees.

The Charity considers its key management personnel comprise the Trustees. The total employment benefits, including employer pension costs of key management personnel were £nil (2019: £nil). There were no employees in this charity in 2020 (2019: Nil).

Page 23

Hackney Parish Almshouses Charity

Notes to the financial statements (continued) For the year ended 31 December 2020

14. Related party transactions

15. Contingent liabilities

During the year ended 31 December 2013 the second capital grant of £1,095,000 was received from Homes and Communities Agency (HCA), taking the total grant to £2,190,000. This was a contribution towards the redevelopment of Dr William Spurstowe House.

Under the terms of the grant some or all of the grant may become repayable in the future if certain terms are not adhered to.

As at 31 December 2020 no liability has been included within these accounts in relation to this as it is understood all terms have been adhered to as at the date of approval.

16. Share capital

Hackney Parish Almshouses Charity is a company limited by guarantee and does not have any share capital. The company currently has 6 members and their individual liability towards the company’s debts is limited to £1 in the event of the company being wound up within

12 months of ceasing to be a member.

Page 24

Notes to the financial statements (continued) For the year ended 31 December 2020

Hackney Parish Almshouses Charity

Detailed Income and Expenditure Account

Income & expenditure
Income from:
Maintenance Contributions
Investment Income
Interest Received
Other income
Total
Expenditure on:
Activities in furtherance of the charity’s objectives
Property costs
Council Tax and Water rates
Light and Heat
Repairs and maintenance
Warden, cleaning and gardening
Insurance
Depreciation
Resident events
Write off of resident arrears
Governance costs
Almshouse management
Clerk's remuneration
Accountancy
Audit/Year End Accounts
Legal and professional
Sundry expenses
Bank charges
Subscriptions
Trustee Insurance
Loan interest
Other recognised losses
Net income		 Dr
Spurstowe
House
Norris &
Mongers
Houses
Total
222,712
84,782
307,494
5,576
8,619
14,195
4,664
-
4,664
2,211
-
2,211
235,163
93,401
328,564
951
2,570
3,521
1,178
(2,282)
(1,104)
40,427
42,079
82,506
19,131
15,170
34,301
3,303
1,779
5,082
282
-
282
980
-
980
-
56
56
66,252
59,372
125,624
13,138
7,075
20,213
13,874
7,468 21,342
6,138
3,371
9,509
1,213
587
1,800
3,037
1,487
4,524
3,095
-
3,095
246
-
246
949
- 949
432
233
665
42,122
20,221
62,343
34,917
-
34,917
20,562
16,623
37,185
71,310
(2,815)
68,495

This page does not form part of the financial statements

Page 25