2022-12-31-accounts

Charity number 1140259

THE FAVERSHAM MUNICIPAL CHARITIES 2010

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

THE FAVERSHAM MUNICIPAL CHARITIES 2010

CONTENTS

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Page
Legal and administrative information 1
Trustees’ report 2-8
Independent auditors’ report 9-12
Statement of comprehensive income 13
Statement of changes in reserves 14
Statement of financial position 15-16
Statement of cash flows 17
Notes to the financial statements 18 - 39
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THE FAVERSHAM MUNICIPAL CHARITIES 2010

LEGAL AND ADMINISTRATIVE DETAILS

Trustees Cllr D H S Simmons, Chairman Mr J Coulter, Vice Chairman Cllr K M Barker Mrs C Davis Mr S A Fisher Mr M S Gates (Resigned as council appointee 27 February 2022, Appointed as co-opted Trustee 28 February 2022) Ms J S Hennessey Cllr C H Jackson (Appointed 28 February 2022) Clir T J Martin (Appointed 28 February 2022) Mrs D Neame Cllr A Reynolds (Appointed 1 January 2022) Mr A Shepherd Mr D G Wade Mrs AJ Walker (Died March 2023) Dr E J Wilcox (Resigned as council appointee 27 February 2022, Appointed as co-opted Trustee 28 February 2022)

Charity registration number	1140259
Registered office	5 The Almshouses
	South Road
	Faversham
	Kent
	ME13 7LU
Auditors	Magee Gammon Corporate Limited
	Henwood House
	Henwood
	Ashford
	Kent
	TN24 8DH
Bankers	National Westminster Bank
	Canterbury City Centre
	11 The Parade
	Canterbury
	CTi 2SQ
	Schroders Personal Wealth
	25 Gresham Street
	London
	EC2V 7HN
Solicitors	Furley Page
	39 St Margaret's Street
	Canterbury
	CT12TX

Page 1

THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report together with the audited financial statements of the charity Faversham Municipal Charities 2010 (the Charity) for the year 1 January 2022 to 31 December 2022.

The members of the board of trustees who have served during the year were:

Clir DH S Simmons, Chairman MrJ Coulter, Vice Chairman Cllr K M Barker Mrs C Davis Mr S A Fisher Mr M S Gates (Resigned as council appointee 27 February 2022, Appointed as co-opted Trustee 28 February 2022) Ms J Hennessey Cllr C H Jackson (Appointed 28 February 2022) Clir T J Martin (Appointed 28 February 2022) Mrs D Neame Cllr A Reynolds (Appointed 1 January 2022) Mr A Shepherd Mr D G Wade Mrs A.J Walker (Died March 2023)

Dr E J Wilcox (Resigned as council appointee 27 February 2022, Appointed as co-opted Trustee 28 February 2022)

1. STRUCTURE, GOVERNANCE AND MANAGEMENT

1.1 Constitution

Faversham Municipal Charities exists under its governing instrument, a Charity Commission scheme of 11 December 2012, and, in relation to the Faversham Heritage Fund and Henry Hatch Charity, a Charity Commission scheme of 29 November 2012. Faversham Municipal Charities is an unincorporated trustee body. Its area of benefit is the town of Faversham as at 2012. The Charity’s principal objectives are relief of poverty by provision of almshouses; advancement of education by provision of grants and bursaries to organisations or individuals; relief of poverty by the making of grants and payments to organisations or individuals; and provision of a recreation ground. The principal objectives of the heritage charity are preservation and improvement of historic buildings and townscape and landscape.

There have been no changes in the objectives since the last annual report.

• 1.2. Method of appointment or election of trustees

Under the scheme of 11 December 2012, there should be five nominated trustees appointed for a four-year term by Faversham Town Council at a meeting of the council and ten co-opted trustees appointed for a five-year term by the trustees at a special meeting. The trustees are trustees of the Faversham Heritage Fund and Henry Hatch Charity by virtue of its scheme of 29 November 2012.

In recent years, co-options of new co-opted trustees (other than co-options of a trustee who was immediately previously a council appointee) have mostly been by election from two or three candidates, who are asked to provide a CV. In appointing a co-opted trustee, the trustees are mindful of the types of professional and volunteer experience that would assist the Charity’s work.

New trustees are given the Charity’s governing instrument and latest accounts and a trustee declaration and are invited to meet the Clerk and view the Charity’s almshouses site.

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

1.3. Organisational structure and decision making

Management of the Charity is the responsibility of the trustees,

The board of trustees has overall responsibility for achieving the Charity’s aims and objectives.

The trustees meet quarterly to review the Charity’s strategy and performance and to set objectives, operating plans and budgets. A General Purposes Committee deals with day-to-day running of the Charity, meeting in most months between quarterly meetings. The Appointments and Welfare Committee meets as needed to consider matters relating to almshouse residency. Working groups are occasionally appointed for particular purposes.

1.4 Risk management

The trustees have assessed the major risks to which the Charity is exposed, in particular those related to operations and finances of the Charity and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

1.5 Trustees’ indemnities

Charity Protection Policy is in place with a £1 million limit of indemnity, which meets Charity Commission requirements.

2. OBJECTIVES AND ACTIVITIES

2.1 Policies and objectives

In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission and Homes England relating to public benefit.

The two Charities administered by the Trustees are set out below with general notes on the operations and have all been disbursed in accordance with their respective schemes. Exact financial details are set out in the final accounts. The Trustees have reviewed the operation of these charities and are satisfied that they provide funds and grants for purposes that are charitable and of public benefit.

The Faversham Municipal Charities 2010 (registered charity 1140259) comprises four branches with the following objectives:

Almshouse and Chapel Branch

‘

For relief of poverty by provision of almshouse accommodation for people resident in the area of benefit for not less than five years preceding appointment and for such charitable purposes for the benefit of the residents as the trustees decide.

Education Branch

For the advancement of education by the provision of grants and bursaries to organisations or individual's resident in the area of benefit and pupils or former pupils of Queen Elizabeth's Grammar School.

Reliefin Need Branch

For relief of poverty by provision of grants and payments to organisations or individuals resident in the area of benefit.

Recreation Branch

For provision of a recreation ground in the area of benefit for the enjoyment of the public.

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

and The Faversham Heritage Fund and Henry Hatch Charity (linked charity 1140259-1), whose objects are preservation and improvement of historic buildings, the distinctive character of the townscape, Jandscape and the creek and preservation of historic artefacts, regalia and ceremoniais in the area of benefit.

2.2. Grant-making policies

Grants are made to applicants in accordance with the provisions of the trust schemes.

3. ACHIEVEMENTS AND PERFORMANCE

3.1 Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details about adoption of the going concern basis are in the Accounting Policies.

3.2 Review of activities

Clir David Simmons was re-elected Chairman for a sixth year at the Charity’s AGM in January 2022.

Three nominated Trustees were appointed by Faversham Town Council for four-year terms. Cllr Alison Reynolds was appointed in January (replacing Mr Tom Gates). Cllr C Jackson and Cllr T Martin were appointed in February in co-opted vacancies that had arisen through retirements in late 2021 (replacing Mr M Gates and Dr E Wilcox , who had both stood down as town council appointees had been made co-opted Trustees).

Mrs D Neame was reappointed as a co-opted Trustee in January.

In June 2020, the Charity Commission confirmed that Municipal Charities of Faversham CIO had been successfully registered, following a process that began in 2017. There are still some outstanding steps to be completed, which mainly relate to the mechanics of the transfer. There is also some work to do to ensure we are compliant with the requirements of Homes England.

The CIO existed during the year as a legal entity without assets, income or expenditure. It is intended that the CIO should become sole corporate trustee of Faversham Municipal Charities 2010 after the satisfactory completion of processes with Homes England and the Charity Commission.

During the year work continued to develop policy documents, to assist with the management of the Charity.

The Trustees have reviewed the operation of FMC 2010 and are satisfied that they have complied with their duty to have due regard to public benefit guidance when exercising their charitable purposes.

The Trustees, at their April meeting, reviewed reserve funds of the four branches and the heritage charity and were satisfied that income had largely either been used or was being held ready for grantrecipients’ projects to begin, with no undue accumulation.

This report provides highlights of the year. Grant-giving is reported for each branch.

Almshouse and Chapel Branch

Provision ofAlmshouses

The branch provides, at its site in South Road, Faversham, 69 almshouse units for about 70 beneficiaries, together with a chapel, a residents’ lounge, a laundry room and a guest bedroom.

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The work of this branch is primarily supported by investment income and by weekly maintenance contributions from almshouse residents.

Trustees continued to work with architects and advisers on a remodelling making our bedsits into onebedroom flats. This is also referred to at item 6 (Future Developments).

Trustees have continued a programme, initiated in 2018, to improve the roof voids in the main almshouses block, including installation of LED lighting and emergency lighting, repositioning of pipes and cabling, better insulation, upgrading fire doors, and improved access for contractors.

The Charity continued its programme of ongoing maintenance, repair and refurbishment during the year. Repair spending was £24,328 for general everyday issues, and Cyclical Maintenance Fund spending was £67,309, which included major refurbishment of some flats and repainting the windows in the new build.

The annual internal inspection of Residents’ flats began in November 2022 and was completed in early 2023.

The Charity’s Appointments and Welfare Committee continues to monitor and refine processes for selecting almshouse residents to ensure that these processes are transparent and ensure appropriate appointments in line with the Charity’s scheme. Some flats have been kept void during the year to ensure that residents are able to stay on the site whilst their bedsit is converted to a one-bedroom flat as part of a remodelling of the main block, referred to at item 6 (Future Developments).

Benefits to residents

The Almshouses provides good accommodation and a supportive environment for about 70 beneficiaries. The Charity works with various public agencies in admitting and supporting some residents with particular problems, so providing a wider benefit to society. The importance of the Almshouses’ service to the Faversham community has been increased by major housing associations’ closure of two sites of sheltered housing for the elderly in the town in recent years. Complaints The Complaints Policy was updated during the year to meet the requirements of the Housing Ombudsman. A copy of the policy is available on the FMC website and in the Resident’s Handbook. There were no housing complaints during the year.

Chapel

Trustees reappointed as Chaplain the Rev Simon Rowlands, Priest-in-charge at St Mary of Charity. Monthly services have continued and have taken place in line with government public health guidelines.

Four organ recitals were given during the year, plus occasional concerts.

Education Branch

Trustees provided, for pupils of Queen Elizabeth’s Grammar School, three prizes of £80 each for academic excellence and three £80 awards to support students in continuing education. The Trustees agreed during the year that the awards should be listed as the “Andrew Telfer Memorial Awards”.

Grants of £600, £500 and £592 were awarded during the year to students to help towards their university courses. The following grants were also awarded during the year: £479 to help.a mature student towards the cost of a new computer; and £500 to GEM72 towards a mobile youth initiative,

A pledge of £480 was made to Dover Athletic FC Academy (at Abbey School, Faversham) towards the cost of a new football kit.

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Relief in Need Branch

No grants were awarded during the year. £3,101 has been set aside to help with the Almshouse remodelling project.

Recreation Branch

The Charity owns the freehold of the 20-acre Faversham Recreation Ground, operated by Swale Borough Council as lessee, and holds modest funds for recreation branch purposes.

Swale Council’s £1.9m heritage-led refurbishment and improvement of the Recreation Ground, which is aided by a £1.6m Lottery award has been completed.

Trustees continue to seek to ensure that the Rec serves for the benefit and enjoyment of the public. Trustees are mindful that the governing instrument by which they are bound specifically requires that the Rec be used as a public recreation ground.

The Faversham Heritage Fund and Henry Hatch Charity

In 2014, FMC set aside £22,000 towards developing the footpaths around the creek. In January 2022, Kent County Council advised that works had commenced to deliver the project. The Trustees agreed the release of the funds, with the provision that it should be returned if the path was not completed and, if there was an underspend, a share should be returned to FMC.

3.3 Investment policy and performance

Following the financial volatility 2022, the portfolio finished the year £304,933 below the 1 January 2022 figure.

Trustees monitor investments, and a Schroders representative attends a full trustee meeting twice a year to give updates and answer questions. COIF is used to hold some funds for particular purposes.

4. FINANCIAL REVIEW

4.1 Reserves policy

In order to fund the maintenance and repair of the almshouse property from its own resources, the Charity holds cash and investments to generate income. If required, all opportunities for grants from statutory authorities and other funders will be accessed. Cyclical and extraordinary repairs are funded annually out of current-year income from the weekly maintenance contributions from residents of the almshouses, together with improvements in accommodation as dwellings become vacant.

4.2 Principal funding

The gifts of past benefactors, mainly in wills, form the basis of the present charities and enable the trustees to support Faversham today. Money donated in this way is not spent but invested so that income may be available for present and future generations.

4.3 Material investments policy

Schroders Personal Wealth manages the charities’ main investments, seeking a balanced return through a diversified portfolio of collective instruments.

Page 6

THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

5. VALUE FOR MONEY (VFM)

This report sets out our VFM performance looking back over 2022 and provides our VFM targets going forward. It aims to provide the reader with a transparent account of how we are striving to make the most of the resources at our disposal in the pursuit of our strategic objectives. We positively encourage feedback and challenge from our customers and other stakeholders on our VFM performance. The report is structured to meet the requirements of the RSH’s VFM standard with which we must comply as a Registered Provider.

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2023 Global
Target | accounts
median 2021
Less than
2500 units
Reinvestment %
New supply delivered % Yes [0% =~ f0%|
New social housing supply 0.80%
New non- social housing supply 0.00%
Gearing %o — debt as a percentage of assets 33.70%
EBITDA MRI Interest Cover % -162% 205%
Headline social housing cost per unit £5,289 | £5,000 | £4,790
Operating margin % - social housing -0.84% 25.10%
Operating margin % - overall -73.51% 22.10%
Return on capital employed (ROCE) % 1.84% 2.90%
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In a very difficult year, our staff have performed extremely weil in continuing, and improving, the provision of social housing. As a charity, we would expect our costs to be greater, and our operating margins and return on capital employed to be lower, than the global metrics, to meet our charitable aims. The charity uses its resources to maintain the properties to a high standard, and to make improvements where possible, rather than acquiring new units; this strategy is unlikely to change in the foreseeable future.

1. FUTURE DEVELOPMENTS

:

The Quinquennial report in 2021 identified that the roof of the old build is in need of urgent repair. Tenders have been sought to undertake this work.

A full application for two-storey extensions converting our bedsits into one-bedroom flats and increasing the number of units was approved by the Council in December 2021. The Almshouse Consortium Ltd is helping with writing a grant application to seek funding for the project from Homes England. The project is dependent on obtaining sufficient grant funding, which remains a major issue, and the cost of repairing the roof,

As of 2023, the cost of the roof repair work now identified as being needed has forced a pause in working towards a start on the remodelling project and makes that a challenge to finance.

Page 7

THE FAVERSHAM MUNICIPAL CHARITIES 2010

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

1. EMPLOYEE INVOLVEMENT AND EMPLOYMENT OF THE DISABLED

Employees are kept informed of all matters which may directly affect them, and also on the day-today running of the charity. In particular, regular consultations take place specifically regarding residents and their welfare, and on matters identified which may require an update of policy. All employee issues are discussed with Trustees, and support and/or appropriate action taken without delay.

In accordance with the requirement for equal opportunities, the Charity has established fair employment practices in recruitment, selection etc of disabled staff. Staff remuneration is reviewed annually, and any increases are based upon inflation figures. When available, more specific comparisons are made with other almshouse charities of a similar size and operation.

8. TRUSTEES’ RESPONSIBILITIES STATEMENT

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:

• e select suitable accounting policies and then apply them consistently;

• ° observe the methods and principles in the Charities SORP;

• ° make judgments and accounting estimates that are reasonable and prudent;

• e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Statement of Recommended Practice Accounting by Registered Social Housing Providers 2014 and the Accounting Direction for Private Registered Providers of Social Housing 2015 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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This report was approved by the trustees, on en a4 2023 and signed on their behalf by:
{ . ' \ \ wU. ay 7 SN »
Cllr D H S Simmons, Chairman Mr J N Coulter, Vice Chairman
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Mrs C Flanagan, Clerk to the Trustees

Page 8

THE FAVERSHAM MUNICIPAL CHARITIES 2010

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARITIES 2010

Opinion

We have audited the financial statements of Faversham Municipal Charities 2010 (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of changes in equity, the statement of financial position, the statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with The Accounting Direction for Private Registered Providers of Social Housing from April 2015 and the Statement of Recommended Practice (SORP) Accounting by registered social housing providers (updated 2018).

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

In our opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 31 December 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the Charities Act 2011, the Housing and Regeneration Act 2008 and The Accounting Direction for Social Housing in England from April 2015.

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 9

THE FAVERSHAM MUNICIPAL CHARITIES 2010

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARITIES 2010

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 Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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:

• the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• • we have not received all the information and explanations we require for our audit.

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

• a satisfactory system of contro/ over transactions has not been maintained.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out on page 8, the trustees 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 Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Page 10

THE FAVERSHAM MUNICIPAL CHARITIES 2010

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARITIES 2010

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ Report. that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 ts detailed below:

Capability of the audit in detecting irregularities including fraud

Based on our understanding of the Charity, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

Procedures performed by the audit team included:

Discussions with management regarding known or suspected instances of non-compliance with laws and regulations;

Evaluation of controls designed to prevent and detect irregularities; and Assessing journal entries as part of our planned audit approach.

There are inherent limitations in the audit procedures described above, and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

This description forms part of our auditor's report.

Magee Gammon Corporate Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page i1

THE FAVERSHAM MUNICIPAL CHARITIES 2010

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARITIES 2010

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Account and Reports) Regulations 2008 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

as Mr Andrew J Childs FCA (Senior Statutory Auditor) For and on behalf of Magee Gammon Corporate Limited

Chartered Accountants Statutory Auditor Henwood House Henwood Ashford Kent TN24 8DH

date: ..22..Madt.. 2928

Page 12

THE FAVERSHAM MUNICIPAL CHARITIES 2010

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022

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|||||||||| |---|---|---|---|---|---|---|---|---| |Notes|2022|2022|2022|2021| |Restricted|Unrestricted|Total|Total| |£|£|£|£| |Turnover|3|-|319,975|319,975|317,234| |Operating|costs| |Direct|costs|8|112|251,290|251,402|225,909| |Support|costs|9|292|70,980|71,272|62,093| |(404)|(322,270)|(322,674)|(288,002)| |Operating|(deficit) /surplus|(404)|(2,295)|(2,699)|29,232| |Other|income| |Donations|and|legacies|2|144|404|548|20,649| |Interest|receivable|and|other|4|5,802|42,289|48,091|38,271| |income| |Gains|on|investment|disposals|17|844|100,922|101,766|105,829| |6,791|143,614|150,405|164,749| |Other|expenditure| |Interest|payable|14|-|(16,495)|(16,495)|(16,602)| |Investment|management| |expenses|5|(1,168)|(8,696)|(9,864)|(1,755)| |Grants|payable|6|(22,000)|(3,071)|(25,071)|(11,359)| |Governance|costs|10|(991)|(11,998)|(12,989)|(17,303)| |(Deficit)|/Surplus|for the year|(17,772)|101,059|83,287|146,962| |Unrealised|losses|on|investments|17|(36,198)|(392,863)|(429,061)|(12,757)| |Total|comprehensive|income/| |(expenditure)|for the year|(53,970)|(291,804)|(345,774)|134,205|

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On behalf of the trustees: “€llr D-H S Simmons, Chairman

Lf “9 / Mr J N Coulter, Vice Chairman

GITILAN 7 CSU OCH! Mrs C Flanagan, Clerk to the Trustees

Page 13

THE FAVERSHAM MUNICIPAL CHARITIES 2010

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022

	Revenue	Designated	Restricted	Total
	Reserves	Reserves	Funds
	£	£	£	£
Balance at 1 January 2021	2,748,359	382,120	266,600	3,397,279
Surplus/ (deficit) from statement ofcomprehensive	202,040	(80,202)	25,124	146,962
income
Unrealised (losses)/gains on	(56,068)	50,841	(7,530)	(12,757)
investments
	2,788,501	352,759	284,394	3,531,484
Transfer between funds	(54,157)	74,157	(20,000)	7
Balancenatai. Pecember 2021	2,840,174	426,916	264,394	3,531,484
Surplus / (deficit) from statement ofcomprehensive	83,988	17,074	GaA72)	83,287
income
Unrealised loss on investments	(269,526)	(123,337)	(36,198)	(429,061)
	2,654,636	320,650	210,424	3,185,710
Transfer between funds	54,688	(54,688)	-	-
Balanceat 81:December 2022	2,709,324	265,962	210,424	3,185,710

Page 14

THE FAVERSHAM MUNICIPAL CHARITIES 2010

STATEMENT OF FINANCIAL POSITION ENDED 31 DECEMBER 2022

	Notes			2022		2021
			£	£	£	£
Fixed assets
Tangible fixed assets	16			2,219,597		2,216,452
Investments	17			1,811,087		2,299,428
				4,030,684		4,515,880
Current assets
Trade and other debtors	18	210,165			100,990
Cash and cash equivalents	27	169,664			160,920
		379,829			261,910
Creditors:amountsfallingdue within one year	19	(52,313)			(50,568)
Net current assets				327,516		211,342
Total assets less current liabilities				4,358,200		4,727,222
Creditors: amounts falling due aftermorethanoneyear	ae			(1,172,490)		(1,195,738)
Totalnetassets				3,185,710		3,531,484

Page 15

THE FAVERSHAM MUNICIPAL CHARITIES 2010

STATEMENT OF FINANCIAL POSITION (continued) AS AT YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
Notes 2022 2021
£ £ £ £
Reserves 24
Revenue reserve 2,709,324 2,840,174
Designated reserves 265,962 426,916
Restricted reserves 210,424 264,394
3,185,710 3,351,484
----- End of picture text -----

These financial statements were approved by the trustees and authorised for issue on he LIBR... 2023.

----- Start of picture text -----
On behalf of the trustees:
Hod Smog eulbld
t DHS Simmons, Chairman Mr J N Coulter, Vice Chairman
----- End of picture text -----

Mrs C Flanagan, Clerk to the Trustees

Page 16

THE FAVERSHAM MUNICIPAL CHARITIES 2010

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Notes|2022|2021| |£|£| |Net cash|generated|from|operating|activities|26|(182,446)|(24,811)| |Cash|flow from|investing|activities| |Dividends,|interest|and|rents|from|investments|48,091|38,271| |Purchase|of tangible|fixed|assets|(16,535)|(46,780)| |Proceeds|from|sales|of|investments|173,000|392,457| |Purchase|of|investments|(11,955)|(359,587)| |192,601|24,361| |Cash|flow|from|financing|activities| |Repayment|of|borrowings|(1,411)|(1,287)| |(1,411)|(1,287)| |Net change|in|cash and|cash|equivalents|(8,744)|(1,737)| |Cash|and|cash|equivalents|at|beginning|of the|year|160,920|162,657| |Cash|and|cash|equivalents|at end|of the year|27|169,664|160,920|

----- End of picture text -----

Page 17

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies

1.1 Basis of preparation

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. The departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), Housing SORP 2014: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015 and Charities Act 2011.

Faversham Municipal Charities 2010 constitutes a public benefit entity as defined by FRS 102.

1.2 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution has been made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent assed and disclosed if material.

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees’ report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation,

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Turnover represents rental income (net of void losses), other income receivable from properties owned by the Association and amortisation of Social Housing Grant (SHG) under the accrual method.

Page 18

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

1.3 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 measure reliably. Expenditure is classified by activity. The costs of each activity are made up of the total 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 cost which are not attributable to.a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include projects managements carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred to the charity’s educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as commitment, but not accrued as expenditure.

1.4 Tangible fixed assets and depreciation

A review for impairment of a fixed assets is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairments. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimate residual value, over their expected useful lives on the following bases:

Freehold Property 2% Fixtures and fittings 4% Roofs 80 years Bathrooms 25 years Kitchens 25 years Boilers 20 years

Page 19

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

Freehold land is not subject to depreciation

Housing properties are stated at their historical cost less depreciation and any provision for impairment. Costs include the cost of acquisition, construction and improvement. Improvements are works which results in an enhancement of the economic benefits of the asset to the Charity arising from an increase in the net rental income over the life of the asset, such as the reduction of future maintenance costs, or which results in the significant extension of the useful economic life of the property.

Depreciation is charged so as to write down the cost or valuation (net of Housing Association Grant, and other capital grants) of the freehold housing properties and major components on a straight-line basis over their expected useful economic lives. Major components are treated as separable assets and depreciated over their expected useful economic lives or he lives of the structure to which they relate, if shorter.

The estimated useful economic life for each component has been based on the Charity’s current experience of component replacement. The Charity will continue to monitor and review the useful economic life of each component and make revisions where sustained material changes occur.

Where there is evidence of impairment, the fixed assets are written down to the recoverable amount and any write down would be charged to the operating surplus.

1.5 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/ (losses) on investments on the Statement of financial activities.

1.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measures reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.

1.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 20

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

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 charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

1.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors of which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund,

1.13 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are discussed below.

Page 21

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

Critical areas of judgement:

Depreciation and residual values

The trustees have reviewed the asset lives and residual values of all fixed asset classes and have concluded that the asset lives and residual values are appropriate.

1.14 Social Housing Grant

Social Housing Grant (SHG) is used to reduce the capital costs of housing property. SHG is initially recognised at fair value as a long-term liability, specifically as deferred grant income, and released through the income and expenditure as turnover income over the life of the structure of the housing properties in accordance with the accrual method applicable to social housing landlords holding housing properties at cost.

1.15 Cyclical Repairs and Maintenance

The Charity has established a regular programme of cyclical repairs and maintenance. Costs are charged to the Revenue account in the year in which they are incurred.

1.16 Extraordinary Repairs

Costs of Extraordinary Repairs unless representing improvements to the properties, are charged to the Revenue account in the year in which they are incurred. The Extraordinary Repairs Reserve represents the amounts set aside to carry out major repairs on Housing properties.

Page 22

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

2. Income from donations and legacies

	Restricted	Unrestricted	Total	Total
	funds	funds	funds	funds
	2022	2022	2022	2021
	£	£	£	£
Donations	144	404	548	649
Grants	-	-	-	20,000
	144	404	548	20,649
Total2021	20,000	649	20,649
Turnoverfrom social housing lettings
	Restricted	Unrestricted	Total	Total
	funds	funds	funds	funds
	2022	2022	2022	2021
	£	£	£	£
Weekly maintenance contributions	-	351,067	351,067	326,760
Less: losses from voids		(52,805)	(52,805)	(31,239)
		298,262	298,262	295,521
Social housing grant utilised in year	*	21,713	21,713	21,713
	-	319,975	319,975	317,234
Total2021	=	317,234	317,234

3. Turnover from social housing lettings

Accommodation in management

						2022	2021
Housing	for	older	people	in	need	69	69

Page 23

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

4. Investment income

		Restricted	Unrestricted	Total	Total
		funds	funds	funds	funds
		2022	2022	2022	2021
		£	£	£	£
	Listed investments	5,630	41,918	47,548	38,229
	Investment properties	#	17	17	17
	Cash	173	354	526	25
		5,802	42,289	48,091	38,271
	Total2021	4,530	33,741	38,271
5.	Investment management costs				.
		Restricted	Unrestricted	Total	Total
		funds	funds	funds	funds
		2022	2022	2022	2021
		£	£	£	£
	Investment management fees	1,168	8,696	9,864	1,755
		1,168	8,696	9,864	1,755
	Total2021	208	L547	L755
6.	Analysis ofgrants
		Grants to	Grants to
		Institutions	Individuals	Total	Total
		2022	2022	2022	2021
		£	£	£	£
	Almshouse & Chapel Branch	=	=	-	-
	Relief in Need Branch	-	-	-	410
	Education Branch	=	3,071	3,071	949
	Faversham Heritage Fund & Henry
	Hatch Charity	22,000	-	22,000	10,000
	Recreation Branch	-	-	-	-
		22,000	3,071	25,071	11,359
	Total2021	10,000	L359	11,359

5. Investment management costs

Page 24

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

7. Analysis of expenditure on charitable activities

	Restricted	Unrestricted	Total	Total
	funds	funds	funds	funds
	2022	2022	2022	2021
	£	£	£	£
Almshouse & Chapel Branch	7	338,205	338,205	303,870
Relief in Need Branch	-	282	282	619
Education Branch	*	3,346	3,346	1,159
Faversham Heritage Fund &Henry Hatch Charity	22,292	-	22,292	10,213
Recreation Branch	7	115	115	102
	22,292	341,948	364,240	315,963
Total2021	10,213	305,750	315,963

Page 25

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

10. Governance costs

	Restricted	Unrestricted
	funds	funds	Total	Total
	2022	2022	2022	2021
	£	£	£	£
Auditor's remuneration	533	8,587	9,120	9,000
Legal & professional fees	369	2,751	3,120	7,638
Trustee indemnity insurance	89	660	749	665
	991	11,998	12,989	17,303
Total2021	1,516	15,787	17,303

During the year ended 31 December 2022, the charity incurred the following governance costs:

£10,319 (2021-£13,219) included within the table above in respect of the Almshouse & Chapel Branch. £706 (2021-£1,079) included within the table above in respect of the Relief in Need Branch. £808 (2021-£1,237) included within the table above in respect of the Education Branch. £165 (2021-£252) included within the table above in respect of the Recreation Branch. £991 (2021-£1,516 ) included within the table above in respect of the Faversham Heritage Fund and Henry Hatch.

11. Analysis of expenditure by expenditure type

	Staff		Other	Total	Total
	costs	Depreciation	costs
	2022	2022	2022	2022	2021
	£	£	£	£	£
Investment management fees	-	>	9,864	9,864	1,755
Costs of raising funds	-	7	9,864	9,864	1,755
Almshouse & Chapel Branch	102,173	13,390	222,642	338,205	303,870
Relief in Need Branch	-	-	282	282	619
Education Branch	2	i	3,346	3,346	1,159
Faversham Heritage Fund & Henry Hatch Charity	-	-	22,292	22,292	10,218
Recreation Branch	-	-	115	115	102
Charitable activities	102,173	13,390	248,677	364,240	315,963
Expenditure on governance	-	-	12,989	12,989	17,303
	102,173	13,390	271,530	387,093	335,021
Total2021	93,748	12,069	229,204	335,021

Page 28

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

12. Net income/ (expenditure)

Net income/ (expenditure)(expenditure)
	2022	2021
	£	£
Operating surplus is stated after charging:
Auditor's remuneration	9,120	9,000
Depreciation	13,390	12,069

No trustees received any remuneration during the year (2021 - Enil). No trustees received any benefits in kind during the year (2021 - Enil).

No trustees received any reimbursement of expenses during the year (2021 - Enil).

The Clerk to the Trustees received emoluments of £53,172 (2021 - £48,778).

13. Staff costs

Staff costs for the year amounted to:

Staff costs for the year amounted to:
	2022	2021
	£	£
Wages and salaries	96,597	92,891
Social security costs	3,608	(1,253)
Pension costs	1,968	2,110
	102,173	93,748

The average number of persons employed by the charity during the year was as follows:

	2022	2021
	No.	No.
Scheme Manager (Part time)	2	2
Caretaker and cleaner	2	2
Administration	2	2
	6	6

No employee received remuneration above £60,000 (2021 — none).

14.	Interest payable
		2022	2021
		£	£
	Onloanswhollyorpartlyrepayableinmorethan5years	16,495	16,602

Page 29

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

15. Taxation

Factors affecting tax charge for the year

The Housing Association is a Registered Charity and is therefore exempt from liability to taxation on its income and capital gains.

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

16. Tangible fixed assets

16. TangibleTangible fixed assets
	Freehold property	Fixtures and fittings	Total
	£	£	£
Cost or valuation
At 1 January 2022	2,967,086	253,902	3,220,988
Additions	-	16,535	16,535
At 31 December 2022	2,967,086	270,437	3,237,523
Depreciation
At 1 January 2022	954,738	49,798	1,004,536
Charge for the year	2,998	10,392	13,390
At 31 December 2021	957,736	60,190	1,017,926
Net book value
At 31 December 2022	2,009,350	210,247	2,219,597
At.31December2021	2,012,348	204,104	2,216,452

The above details relate to improvements and developments of the properties which were transferred on 1 January 2013 from Faversham United Municipal Charities and there are no records of the original cost of them.

They were funded by Housing Corporation Grants totalling £1,737,009.91 and Residual Mortgage Loans of £57,523 at an annual interest rate of 14% per annum over 30 years from 1 November 1982, and £190,465.24 at an annual interest rate of 9.375% per annum over 60 years from 1 October 1989. The balance was provided from the Charity’s resources.

Page 30

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

17, Investments

17,	Investments
		2022	2021
		£	£
	The market value of investments as at 31 December 2022 is as follows:
	IPS Growth Portfolio - 128,839.04 units (2021 — 138,273.15)	257,420	297,702
	IPS High Yield Income Portfolio ~ 1,497,856.35 units (2021 - 1,487,027.72)	1,393,006	1,659,523
	Charities Investment Fund ERF Scheme — 728.99 accumulation units (2021 —815)	160,661	197,371
	Charities Investment Fund HRF Scheme - 0 accumulation units (2021 —- 598.05)	-	144,832
		1,811,087	2,299,428
	The cost of investments as at 31 December 2022 is as follows:
	IPS Growth Portfolio — 128,839.04 units (2021 - 138,273.15)	177,929	190,958
	IPS High Yield Income Portfolio — 1,497,856.35 units (2021 - 1,487,027.72)	1,628,247	1,616,293
	Charities Investment Fund ERF Scheme — 728.99 accumulation units (2021-815)	57,350	64,117
	Charities Investment Fund HRF Scheme — 0 accumulation units (2021 — 598.05)	-	51,439
		1,863,527	1,922,806
	All investments held at 31 December 2022 are UK listed investments in managed funds.
	Market value at 1 January.2022	2,299,248	2,239,226
	Additions	11,955	359,587
	Disposals	(173,000)	(392,457)
	Realised surplus	101,766	105,829
	Unrealised surplus / (deficit)	(429,061)	(12,757)
	Market value at 31 December 2022	1,811,088	2,299,428
18.	Trade and other debtors
		2022	2021
		£	£
	Social housing rent arrears	1,710	168
	Prepayments and accrued income	208,455	100,822
		210,165	100,990

Page 31

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

19. Creditors: amounts falling due within one year

19.	Creditors: amounts falling due within one year
		2022	2021
		£	£
	Other loans	1,411	1,287
	Accruals and deferred income	29,189	27,568
	Deferred grant	21,713	21,713
		52,313	50,568
20.	Creditors: amounts falling due after more than oneyear
		2022	2021
		£	£
	Deferred grant	998,768	1,020,481
	Other joans	173,722	175,257
		1,172,490	1,195,738
21.	Deferred income
		2022	2021
		£	£
	Balance brought forward	2,857	790
	Released in year	(2,857)	(790)
	Deferred during the year	2,558	2,857
	Balance carried forward	2,558	2,857
22.	Deferred grants
		2022	2021
		£	£
	Balance brought forward	1,042,194	1,063,907
	Released in year	(21,713)	(21,713)
	Balancecarriedforward	1,020,481	1,042,194

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

The deferred grant represents a capital grant received in 1980-84, 1988-91, 2003 and 2004-05 for the modernisation of the almshouses, building of new almshouses, replacing gas boilers and windows. The grant is being released over the estimated useful life of the property in association with FRS102.

Page 32

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

23. Loans

				2022	2021
Amounts	falling	due	within one year	1,411	1,287
Amounts	falling	due	1-2 years	1,550	1,400
Amounts	falling	due	2-5 years	4,750	4,300
Amounts	falling	due	after more than 5 years	167,422	169,557
				175,133	176,544

Loans are secured over the assets concerned,

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

24, Statement of funds

Statement of funds — current year

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Balance|Balance| |ati|at|31| |January|Income|Expenditure|Transfers|Gains/|December| |2022|In/out|(Losses)|2022| |£|£|£|£|£|£| |Designated| |funds| |Cyclical|57,882|-|(50,123)|70,694|-|78,453| |maintenance| |fund| |Emergency|repair|197,371|-|(27,440)|7,440|(16,711)|160,660| |fund| |Housing|146,663|-|-|(132,822)|(11,992)|1,849| |redevelopment| |fund| |Roof|repair|fund|25,000|-|-|-|-|25,000| |426,916|-|(77,563)|(54,688)|(28,703)|265,962| |General|funds| |General|funds|2,832,264|352,821|(277,568)|(13,707)|(203,341)|2,690,469| |Education|branch|1,525|4,734|(5,107)|32,948|(28,844)|5,256| |Recreation|branch|2,195|965|(474)|6,737|(5,882)|3,541| |Relief|in|need|4,190|4,148|(1,819)|28,710|(25,171)|10,058| |branch|eee|eee|ee| |3,267,090|362,668|(362,531)|-|(291,941)|2,975,286| |Restricted|funds| |Organ|maintenance|3,518|144|(112)|-|-|3,550| |fund| |Faversham|260,876|5,802|(24,451)|-|(35,353)|206,874| |Heritage|Fund| |and|Henry|Hatch| |Charity| |264,394|5,946|(24,563)|-|(35,353)|210,424| |Total|of funds|3,531,484|368,614|(387,094)|-|(327,294)|3,185,710|

----- End of picture text -----

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

24. Statement of funds (continued)

Statement of funds — prior year

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Balance|Balance| |ati|at3i| |January|Income|Expenditure|Transfers|Gains/|December| |2021|In/out|(Losses)|2021| |£|£|£|£|£|£| |Designated| |funds| |Cyclical|58,926|-|(25,640)|24,596|-|57,882| |maintenance| |fund| |Emergency|repair|168,048|-|(54,561)|54,561|29,323|197,371| |fund| |Housing|125,146|-|-|-|21,517|146,663| |redevelopment| |fund| |Roof|repair|fund|25,000|=|a|=|-|25,000| |Chapel|heating|5,000|-|-|(5,000)|-|-| |fund| |382,120|-|(80,201)|74,157|50,840|426,916| |General|funds| |General|funds|2,743,336|343,936|(238,082)|(45,685)|28,759|2,832,264| |Education|branch|396|3,694|(2,565)|(4,080)|4,080|1,525| |Recreation|branch|1,831|753|(389)|(832)|832|2,195| |Relief|in|need|2,795|3,241|(1,846)|(3,560)|3,560|4,190| |branch| |3,130,478|351,624|(323,084)|20,000|88,071|3,267,090| |Restricted|funds| |Organ|maintenance|3,518|-|~|-|-|3,518| |fund| |Chapel|Heating| |-|20,000|-|(20,000)|-|-| |Faversham|263,283|4,530|(11,937)|-|5,000|260,876| |Heritage|Fund| |and|Henry|Hatch| |Charity| |266,801|24,530|(11,937)|(20,000)|5,000|264,394| |Total|of funds|3,397,279|376,154|(335,021)|-|93,072|3,531,484|

----- End of picture text -----

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

24, Statement of funds (continued)

Summary of funds — current year

	Balance					Balance
	at 1					at 31
	January	Income	Expenditure	Transfers	Gains/	December
	2022			In/out	(Losses)	2022
	£	£	£	£	£	£
Designated	426,916	-	(77,562)	(54,688)	(28,703)	265,962
funds
General	2,840,172	362,668	(284,967)	54,688	(263,239)	2,709,322
funds
	3,267,088	362,668	(362,530)	-	(291,942)	2,975,284
Restricted	264,394	5,946	(24,563)	-	(35,353)	210,425
funds
	3,531,481	368,614	(387,093)	-	(327,295)	3,185,709

Summary of funds — prior year

	Balance					Balance
	ati					at 31
	January	Income	Expenditure	Transfers	Gains/	December
	2021			In/out	(Losses)	2021
	£	£	£	£	£	£
Designated	382,120	~	(80,201)	74,157	50,840	426,916
funds
General	2,748,358	351,624	(242,883)	(54,157)	37,231	2,840,174
funds
	3,130,478	351,624	(323,084)	20.000	88,071	3,267,089
Restricted	266,801	24,530	(11,937)	(20,000)	5,000	264,394
funds
	3,397,279	376,154	(335,021)	-	93,072	3,531,484

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

25. Analysis of net assets between funds

Analysis of net assets between funds ~ current year

	Restricted	Unrestricted	Total
	funds	funds	funds
	2022	2022	2022
	£	£	E
Tangible fixed assets	-	2,219,597	2,219,597
Fixed asset investments	195,411	1,615,677	1,811,087
Current assets	15,014	364,815	379,829
Creditors due within one year	-	(52,313)	(52,313)
Creditors due in more than one year	-	(1,172,490)	(1,172,490)
	210,425	2,975,285	3,185,710

Analysis of net assets between funds — prior year

	Restricted	Unrestricted	Total
	funds	funds	funds
	2021	2021	2021
	£	£	£
Tangible fixed assets	-	2,216,452	2,216,452
Fixed asset investments	231,735	2,067,693	2,299,428
Current assets	32,659	229,251	261,910
Creditors due within one year	-	(50,568)	(50,568)
Creditors due in more than one year	-	(1,195,738)	(1,195,738)
	264,394	3,267,090	3,531,484

.

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THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

26, Reconciliation in net movement in funds to net cash flow from operating activities

				2022	2021
				£	£
	Net income/(expenditure) for the year		(345,774)		134,205
	Adjustments for:
	Depreciation charges			13,390	12,069
	(Gains)/losses on investments			327,295	(93,072)
	Dividends, interestand rentsfrom investments			(48,091)	(38,271)
	Loss on the sale of fixed assets			-	=
	(Increase) / decrease in debtors		(109,175)		(13,999)
	(Decrease) / increase in creditors			(20,091)	(25,743)
	Netcash used (in)/by operating activities		(182,446)		(24,811)
	Analysis of net debt
		Ati			At 31
		January		December
		2022	Cash flows		2022
		£		£	£
	Cash atbankand in hand	160,920	8,744		169,664
	Debt due after 1 year	(175,257)	1,535	(173,722)
	Debt due within 1 year	(1,287)	(124)		(1,411)
		(15,624)	10,155		(5,469)
27.	Analysis ofcash and cash equivalents
				2022	2021
				£	£
	Cash in hand			169,664	160,920
28.	Grant commitments
	At the 31 December 2022 the charity had	commitments as follows:
				2022	2021
				£	£
	Within one year			1,100	23,600
	Between one and two years			=	2
				1,100	23,600

27. Analysis of cash and cash equivalents

Page 38

.

THE FAVERSHAM MUNICIPAL CHARITIES 2010

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022

29. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £1,968 (2021 - £2,110). Contributions totalling Enil (2021 - £nil) were payable to the fund at the balance sheet date.

30. Related party transactions

Clir Simmons and Cllr Jackson are members of Swale Borough Council. Cllr Barker and Cllrs Jackson, Martin and Reynolds are members of Faversham Town Council. During the year lease payments were received totalling £1 (2021 - £1) from Swale Borough Council for a recreation park held by the charity. This is in respect of a long lease entered in 2010. The Councillors cannot use their position to their advantage. No monies were outstanding at the year end.

31. Leases arrangements

At the 31 December 2022 the charity had future incoming resources from non-cancellable lease agreements as follows:

	2022	2021
	£	£
Within one year	1	1
Between one and two years	1	1
Between two and five years	3	3
More than five years	34	33
	37	38

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