Charity number 1140259 THE FAVERSHAM MUNICIPAL CHARttIES 2010 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
THE FAVERSHAM MUNICIPAL CHARITIES 2010 CONTENTS Page Legal and administrative details Truste, report Independent auditors. report 10-13 statement of comprehensTve income 14 Statement of changes in equity 15 Statement of financial position 16 ststement of cash flows 17 Notes to the financial statements 18-41
THE FAVERSHAM MUNICIPAL CHARITIES 2010 LEGAL AND ADMINISTRATIVE DETAILS Trustees Mr D H S Simmons, Chair (resigned 31 May 20241 Mr J N Coutter, Vice Chair (resigned 31 May 2024) Mr K Barker (resigned 22 February 20241 Mrs C Davis (resigned 18 April 2024} Mr S A Fisher (resigned 31 May 20251 Mr M S Gates, VI Chair (resigned 31 Nay 2024) Ms J Hennessey (resigned 31 Nay 20241 Cllr C Jackson (resigned 31 May 2024) air C Martin (appointed by Faveharn Town Counal 23 February 2024, resigned 31 May 20241 Cllr T Marbn (resigned 31 May 20241 Mrs D Neame [rigned 31 May 2024) Mr B Planner (resigned 31 May 20241 Mrs A Reynolds (rIgned 31 May 20241 Mr A Shepherd (resigned 31 M3y 2024) Mr D G Wade (resigned 23 April 2024) Dr E J Wilcox (resigned 31 May 2D24) Municipal Charities ol Faversham {appointed 31 May 20241 Charlty reylstratlon number 1140259 Registered office 5 The Almshouses South Road FaVehaM Kent ME13 7LU Auditors Magee Gammon Corporate Mited Henw(KMI House Henwo¢KI Ashlord Kent TN24 8DH Bankers National We5trninster Bank Canterbury Cty Centre 11 The Parade Canterbury 12SQ Schroders Personal Wealth l London Wall London EC2Y SEA Solicitors Furley Page 39 St Mèrgaret's stet Canterbury 12TX Page I
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Truste& present their annual report together with the audited financial statements of the charity Faversharr Municipal Charities 2010 flhe Charity,? lor the year l January 2024 to 31 December 2024. Under the revisions to our governing d(Kurnent in May 2024. Municipal chariti of Faversham was appointed sole trustee of The Faversham Municipal Chariti& 2010 on 31 May 2024. On the same date, all indiwdual trustees resigned from The Faversham Municipal Charitie5 2010 and were all Ippointed tNstees of Municipal Charities of Favershèm. The member5 of the Board of Trustee5 01 The FaVeharn Municipal Char"rf(ies 2010 during the peri(KJ 01 January to 31 May were.. Mr D H S Sirnrnons, Chair (resigned 31 May 2024) Mr J N Coulter, Vice Chair (resigned 31 May 20241 Mr K BarkeT (resigned 22 February 2024) Mrs C Dams (resigned 18 April 2024) Mr S A FisheT (resigned 31 May 20251 Mr M S Gate5, Vice Chair (resigned 31 May 2024) Ms J Hennessey (resigned 31 May 2024) Cllr C Jackson {resgned 31 Nay 2024) Cllr C Martin (appointed by Faversharn Towrj Council 23 February 2024, resigned 31 May 2024) Cllr T Martin (resigned 31 May 2024} Mrs D Neame (r19ed 31 May 2024) Mr B Planner1fft5igned 31 May 2024) Mrs A Reynolds (resigned 31 May 20241 Mr A Shepherd Iresigned 31 May 2024) Mr D G Wade (resigned 23 April 2024) Dr E J Wilcox (resign 31 May 20241 The Membe of the Board of Trust of Municlpal Charitie5 91 Faversharn (CIO) during the period 31 May to 31 December were.. Mr D H S Simmons, Chair Mr J N Coulter, Vice Chair (died 2 June 2024) Mr S A Fisher (resigned 14 April 20251 Mr M S Gates, WI Chair Ms J Hennessey air C Jackson air C Martin (appointed by Favetsham Town Counol 23 Febwary 20241 Cllr T Man Mrs D Neame (resigned 15 January 2025} Mr B Planner Mrs A Reynolds Mr A Shepherd Mr5 J Sttsnor (co-opted 15 january 20251 Mr5 M Vanden Berghe {ctropted 18 July 2024) Dr E J Wilcox Mr L Young (c(k-OPted 17 Ortober 2024) The members of the Board of Trust who have served during the year were.. Municipal chariti of Faver5ham (registered chaiity 119(X)42) apwjinled as sole corporate trustee on 31 May 2024 All Indlvldual Trustees resigned from the Board of Trustees of Faversham Municipal Charities 2010 on 31 May 2024. Page 2
THE FAVERSHAM MUNICIPAL CHARMES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Referen to trustee in the following report means a trustee of The Faversharn Nuniapal Charities for the period to 31 May 2024 and trustee of The Faversham Municipal Charities 2010 and Municipal Charities of Faversham Irorn 31 May 2024. RUCTURE, GOVERNANCE AND MANAGEMENT 1.1 Con5titutÉon The Faversham Municipal Charities 2010 exists under its gtsverning instrument, a Charity Commission scheme of 11 Dernber 2012: as amended 31 May 2024, and, in relation to The Faversham Heritage Fund and Henry Hatch Charity, a Charity Commission stheme of 29 November 2012. The Faversharn Municipal Charitie5 2010 Is an L)nlncorporated trustee body. Its area of benefrc is the town ol Faversham a5 at 2012. The Charity's principal objectives a relief of poverty by provision of almshouses. advaNment of education by provision of grants and bursaries to organisations or Indivlduals,. relief ol poverty by the making ol grants and payments to orgènisations or indiwduals; and provision of a recreation ground. The principal object& ol the heritage charity are preservation and improvernent of historic buildings and tOw5(ape and lanthpe. The have been no changes in the Objectiv sinte the last annual report. 1.2 Method of appointment or election of trustees Under the scheme of 11 December 2012, as atnended 31 May 2024, there should be five nomlnated trustees apwinted for a four-year term by Faversham Town Counol at a meeting ol the countil and ten co-opted trustees appointed for 3 five-yeor term by the trustees at a special meeting. The trustees are truste of The Faversham Heritage Fund and Henry Hatch Charty by wrtue ol its scheme of 29 November 2012. In recent years, co-options of new co-opted tDJStees (other than co-optitsns of a trusiee 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 profe55ional and volunteer experience that would assist the Charivg wtsrk. New trustees are gfven the Charitys governirvj instrument and latest accounts and a trustee declaration and are invited to meet the Clerk and view the Charity's Almshouses site. 1.3 Oryanisational stNrture and decision making Monagement of the Charity the responsibi5ity of the trustees. The tx)ard of trustees has overall responsibility for achiewing the Charity's aims and objective5. The trustees meet quarterly to review the Charity's strategy and performance and to set objectives, operating pl8n5 and budgets. A General Purpose5 Committee deals Wlth day-to-day rvnning of the Charity, meeting in most months between quarterly meeungs. The Appointments and Welfare Committee meets as needed to consider matters relating to alrnshouse residency. Working groups are occasionally appointed for particular purposes. pe3
THE FAVERSHAM MUNICIPAL CHARrrIE5 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 1.4 Rlsk management The trustee5 have assessed ihe major ris to which the Charity is exposed, in particular those lated to operatiors and finances of the Charity and ère satisfied that systern5 and procedure5 are in place to tnitigate exposure to the major risks. 1.5 Trustees. Indemnltles A Charity Protection Policy is in place with a £1 rnillion litnit ol indemnity, which meets Charity Comtnission requirements. OBJEcfIvES AND AcmirnES 2.1 Policies and objectives In settirhg objectives and planning for artivities, the Trustees have given due consideration to general guidan published by the Charity Cornrnission and Homes England relating to public benefit. The tharities administered by the Trustees are set Dut below with general notes on the operations and have all been disbursed in accordan with their respective schemes. Exart finanaal details are set out in the fin31 accounts. The Trustees have reviewed the operation of these d)arities and are satisfied that they provide funds and grants for purposes that are charitable and of public benefit. The Charity comprises four branche5 with the following objectives: Almshouse and Chapel Branch For relief ol poverty by provision of almshouse accommodation for people resident in the area of benefit for not IS than five years preceding appointment and for such charitable purposes for the itnefit of the residents as the trustees decide. Education Branch For the advantrment of education by the provision of grants and bursaries to organisation5 or individuals resident in the area of benefit and pupils or former pupils of QLJeen EIoBbeth's Grarnmar School. Relief in Need Branch For relief of PDverty by provision of grants and payments to organisations or indNiduals resident in the area of benefit. Recreation Branch For provision of a recreation ground in the area of benefit for the enjoyrnenl of the public. and The Faversham Heritage Fund and Henry Hatch Charity Ilinked charity 1140259-1), whose objects are preservation and improvement of historic buildings, the disknnctwe character of the tOWrPe, landsEape and the creek and preservation ol historic artefacts, regalia and cèremonia15 in the area of benefit. 2.2 Grant-making policies Grants are made to applicants in accordance with the PTovisions of the trust schem. Page q
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUEEs, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 ACHIEVEMENTS AND PERFORMANCE 3.1 Goin9 concern After makang appropriate enquiries, the trustees have a reasonèbSe expertation 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 detBi15 about adopknon of the going concern basis are in the Accounting Polities. 3.2 Review of activities In lune 2020, the Charity Commission Confirmed that the Municipal Charities of Favershatn ICIO) had been successfully registered, following a prOs$ that began In 2017. In May 2024, the CIO became sole corwrate trustee of the Charfty and the FavershaFn Heritage Fund and Henry Hatch Charity following the satisfactory cornpletion of processes wth Homes England and the Charity Cornmission. The CIO will hold the assets ie Faversham Almshou Bnd the Faversharn Recreation Ground. The registration is CurntlY pending with the Land Registry. During the year, work continued to develop policy docurnents, to a15t with the management of the charity. The Trust have reviewed the Operat0 of the Charity and are satisfied that they have complied with their duty tt> have due regard lo public beneTIt guidance when exercislng their tharitable purposes. The Truste, at their Aprll meeting, reviewed reserve funds of the four branches and the hetage charity and were satisfied that income had largely either been used Of was being held ready for grant-reCipient projects to begin, with no undue accumulation. Thls report provides hlghlights of the year. Gr3nt*ivirsg is reported for each branch. AlnL8house and Chapel Branth Provlsion of Almshouses The branch provides, at S site in South Road, Faversharn, 69 almshouse units for about 75 neficiaries, t(yJether with a chapel, a residents, lounge, a laundry room and a guest room. The work of this branch is primarily supported by invethent incorne and by weekly malntenan tontribLJtions from almshouse resident5. The 2021 quinquennial inspection of the building by our architects identified that the roofs of the main 1863 building need repaiTing uryently. Phase one of the work to repair the south£astern block began in August 2023 and was completed at the end of the 2024. Phase iwo of the work to repair the north-westem block will Cornmen ono sufficient funds have been raised. Fundraislng Initiativ for phase tr40 of this essential work, which is costing E520,000, are ongoin9. The Charty continued S progratnme of ongoing maintenance, repair and refiJrb15hment dLJring the year. Repair spending was £24,671 for general everyday issues, and Cyclical Maintenance Fund spending was £52,880, which included refurbishtnent of 5 flats. The annual internal inspection of Residenlg flats by a Sutveyor, was completed in November 2024. Prior to this was a rnid-year inspection undertaken by FMC staff. ThÈ Charitrls Appointments and Weffare Q>mmittee continues to monltor and refine proSseS for 5electsng alrnshouse residents to ensure thèt these processes are Iran5parent and ensure appropriBre appointments in line with the Charity's scheme. Five flats changed hands during the year. When there has been a change of occupant, each flat has been upgraded. Page 5
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Charity t(K)k part in the South and South East in Bloom competition and was awarded a Level 4 Award in the"It's Your Neighbourhood" category by the Royal Horticultural Society. The grounds are not only tended to by professional gardeners, but also by some of the Residents. Benefits to residents The Alm5house5 promde good accommodation and a supportive environment for about 75 beneficiaries. The Charty works with various public agencies in admitting and supporting some residents with particular problems, so providing a wider benefit to society. The Importan of the Almshou5es' semce to the Faversham community has been increased by major housing as50ciation5' c1ure of tr40 sites of sheltered housing for the elderly in the town in recent years. Residents, Satisfaction Survey The Charity is committed to improving services and to reviewing what are the rn05t prominent Issues and prforit4es for OL5r residents by gathering their valuable feedback. A surnrnary of the Residents, Satisfaction SuNey carrled out In 2024 are below.. Question Very SaiSsfied Fairly Satisfied Satisf3Ction with overall servi 58% 26Y Satisfattion with repairs SeiCe from the Charity 58% 31% Satisfaction with time taken to complete most recent repalr 54% 27% Satisfaction with prowding a home thays well maintsined 61% 29% SatisfaLtion of fdling safe living in your almshouse 61% 29% Satisfaction that the Charity listens to your views and acts upon them 55% 29% Satisfaction that the Charity keeps you inform& about things that matter to you 58% 29% Satisfaction that the Charity'lreats tne fairty and wtth re5pecV 52% 32% Satisfaction with the way that the Charity responds to complaints Salisfacbon that the Charity keeps communal areas clean and well maintained 63% 30Y. SatisfaLtion that the Charity makes a positive wntributyon to neighbDurhoods 55% 26% Satisfaction with the way in which the tharty tsckles anti-soaal behaviour 61% 19% Complaints The Complaints Policy was updated during the year to meet the requirements of the Housing Ombudsman Compliir)t Handling C(Kle 2024. A copy ol the policy is available on the Charity's website and in the Residents Handbook. There were four cornplaints during the year,. one related to housiry repairs. and three related to anti-social behaviour concerns. None of the complaints were referred to, or investigated by, the Housing Ombudsman Servi. Chapel Trustees reappointed as Chaplain the Rev Simon Rowlands, Priest-in-charge at St Mary of Charty. Monthly serVIS have continued.
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Education Branch Truste provided, for PLJplls of Queen Elizabeth's Gramrnar School, three prlzes ol E80 each for academic excellence and three £80 awards to 5UPPOrt students in contir)uing education. The three awards for support in tertiary edurats'on were listed as Andrew Teller memorial awards. Grants of £500 each were given to Cinque Ports Rowing and FaVeharn Youth Choir. Under Scheme Clause 3916), on reallocating surplus income, E984 was set aside towards the repair of the Almshouse roof. Relief in f4eed Branch Under Scheme Clause 3916), on reallocating surplu5 income, £4,051 was given and £3,742 was t side to help with the Tepair of the Almshouse roofs. Retreatlon Bftnch Ownership of the freehold of the 20-aC Faversham Recreation GroLJnd, operated by Swale Borough Counal as lessee, is In the proCS of being transferred from the Charity to the CIO. The registration 15 currently pendin9 Wlth the Land Registry. The Charity holds modest funds for recreation branch purposes. Truste continue to seek to ensure that the Rec serves for the benefit and enjoyment ol the public. Trustees are tnindful that the governiry instrument by which they are bnd 5peaficalW requires that tre Rec be used as a public recreation ground. Under Scheme Clliuse 39 {61, on reallooling surplus income, £418 was sel aside towards the repair of the Almshouses roof. The Faversham Herita9e Fund and Henry Hatch Charfty É3,125 was sel aside towards the repair of the Wmshou5es roof. FINANCEAL REVIEW 4.1 Reserves policy In order to fund the maintenance and repair ol the Almshouse property frorn its own resources, the Charity holds cash ènd investments to generate income. If required, all opportunTties for grants from ststutory authoriti and other funders will be accessed. Cyclic313nd extraordinary repairs are funded annually out of current-year income frorn the weekty rnaintenance contributions frorn rIdents of the Aknshouses, together with impniveTnents in accomrnodation as dwellings become vacant. 4.2 Principal fundlng The gifts of past benefattors, mainly in wills, form the basi5 01 the pent charities and enable the trustees to SUPPOrt Faversharn today. Money donated in this way is not spent but Invested 50 that income rnay be available for present and future generations. 4.3 Materlal investments policy Schroder5 Personal w1th tnanages the Charity's main investments, seeking a balanted return through a diversified FK>rtfolio of collective instruments. PagE 7
THE FAVERSHAM MUNICIPAL CHARTtIES 2010 TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 VALUE FOR MONEY (VFM) Thi5 report sets out our VFM perf0rrnan looknng back over 2024 and promdes our VFM tsrgets going forward. It aims to provide the ader with a tran5parer)t account of how we are striving to rnake the most ol the resource5 at our cfisp05al in the pursuit of our stratlC objecbve5. We positively encourage feedback and challenge from our customers and other stskeholders on our VFM performance. The report IS Struttured to meet the requirements of the RSH'S VFM standard with which we must comply as a Registered Provider. Metric RSH metrics 2024 2025 Target Global accounts lower quartÉle Reinvestment Wo New SU ply delivered New social housin su New non- social housing supply Gearin D/o- debt as a ercenta EBITDA MRI Interest Cover ¢J/o Headline social houslng cost per unlt Operdting margin 0/0 . social housing Operdting margin 0/0 - overall Return on ca ital em ROCE Yes Yes Ye5 Yes Yes Yes Ye5 Yes Yes Yes 18% 15% 4.70% 0% 0% 4.1% -24930/0 E12,903 10.53% 23.64% 5.OIU/o 0% ooh 4U/o IOOWO £12,000 12¥0 20Yo 5¥0 0.70% 0.00% 32.10% 107D £3,700 17.609/p 14.309 2.40Q e of 35sets In a very difficu year, our stsff have performed extremely well in continuing, and improving, the provision of soaal housing. As a charity, we would expett our costs to be greater, and our operating maryins and return on capitsl employed to be lower, than the global metrics, to meet our charitable airns. The Charity uses its resources to maintain the properties to a high standard, and lo make improvement5 where possible, Tather than acquiring new units,. this strategy is Unlike to change in the foreseeable future, as a significant improvement prograrnme was carried out during the year. FufuRE DEVELOPMENTS The Quinquennial Report in 2021 identified that the rcK)fs of the rnain 1863 building need repairing urgentw. The work to pair the roof of the south-eastem block began in August 2023 and was completed at the end of 2024. The work to repair the north-eastem block will comrnence once sufficient fvnds have been raised. Fundraising initiatives for this essential work are ongoing. EMPLOYEE INVOLVEMENT AND EMPLOYMENT OF THE DISABLED Employees are kept infomied of all rnatters which may direttly affett them, and also on the day-to- day running of the Charity. In particular, regular consultation5 take place speafically regarding residents and their weffare, and on matters identified whith may require an update of policy. All empk)yee issues are discussed with trustees, and support andlor appropriate action taken without delay. In accordance with the requirement for equal opportunities, the Charity has established fralr employment pr3rtlces in retru((ment, selection etc of disabled staff. staff remuneratlon is reviewed annually, and any increases are based upon inflation figures. When available, more specific cornparisons are rnade with other almshouse charities of a similar size and operation. Page 8
THE FAVERSHAM MUNICIPAL CHARITIES 2010 TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 TRUSTEES, RESPONSIBILrtIES ATEME The trustees are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kirydom Accounting Stsndards (United knngdotn General Accepted Accountr"ng Practice). The law applicab to charities in England & Wales reqvire5 the trusiees to prepare financial statements for each financial year which give a true and fair view of the state of affairs ol the Charlty ènd of the incoming resources and application of resources of the Charity for thal period. In preparing these finanaal statements, the trustees are Tequired to-. sett suitable accounting policies and then apply them con515tently* observe the ffielhods and principles in the Charities SORP,. make judgements and acmunting estirnate5 that are reasonable and prudent,. prepare the financial statements on the gging conttm basis unless it is inappropriate tr> pr&L)me that the charity will continue in operation. The trustees are rponSIble for keeping proper actounting records that are Sufficnt to show and explain the Charivs transactions and dlsclose 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 Soaal Housing Providers 2014 and the Accounting Direttion for Private Regtered Providers of Social Housng 2015 nd the prowsions of the Trust Deed. They are also responsible for safeJr uarding the 355ets of the Charity and hence for tskin9 reasonab steps for the prevention and delettion of fraud and other irre9uL3rities. s report was approved by the trustees, on .. . . 2025 and slgned on their behalf by.. Mr D H S Sitlltnons, Chaimian lon behalf of the CIO) Mr M Gates, Wice Chairman lon behalf of the CIO) Mrs C Flanagan, aerk to the Trustees Page g
THE FAVERSHAM MUNICIPAL CHARThIES 2010 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARrrIES 2010 Oplnlon We have audited the financial statements of Faversham Municipal Chaiities 201Q (the 'charity) for the year ended 31 December 2024 which comprise the 51atetnenl of cotnprehell5ive income, the Statement of changes in equity, Ihe ststement of financial position, the statement ol cash flows and the relhted note5. The f1nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Finanaal Keporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {Unrf(ed ngdoM Generally Accepted Accounbng Practice). The fin3ntial statements have been prepared in accordance wth The Atcoullbng Direttion for Prive Registered Providers of Social Housing from April 2015 and the Statement of Recommended Prattice ISORPI Accounting by registered social housing providers (updated 20181. This has been done in order for the accounts to provide a true and frdir view in accordan with the Generally Acceptd Accounting Practice effertive ftsr reporting periods beginning on or after l January 2019. In our opinion the financial statements: give 3 true and fair Mew of the st3tÉ of the charity's affairs as at 31 Dernher 2024, and of its incoming resources and application of resources, including its incorne and expenditure, for the year then ended,. have been properly prepared in acwrdance with United KingdoTn Generally ACpted Accounting Practice,. and have been prepared in accordance with the Charilies Att 2011, the HDu5ing and Regeneration Act 2008 and The Accounting Direction for Social Housing in England from April 2015. Basls for opinion We conducted our audit in accordante with International Standards on Auditing IUKI (Isk {UKI) and applicable law. Our responsibilities under tho standards are further described in the Auditor5, responsibilities for the audit of the finanaal statements sertion ol our report. We are independent of the charity in accordan 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 Stsndard, 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 pro*ide a basis for our opinion. Coneluslons relatlng to golng concern We have nothing to report in respect of the following matters in relatson to which the ISAS (UK) require LJ5 10 report to you where.. the trustees, use of the going concem basis of acctsunting in the preparation of the financial statements is not appropriate; or the trustees have noi distlosed in the financial statements any identsfied material uncertainties that may cast significant doubt about the crity'S ability to continue to adopt the going concern basis of accounting for a period of at least tsvelve months from the date when the finanual ststernents are authorised for issue. Page io
THE FAVERSHAM MUNICIPAL CHARITIES 2010 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARrrIES 2010 Other information The trustees are responsible for the other infortnation. The other inforrnation comprises the information induded 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 forrn of assurance conclusion thereon. In connettion with our audit of the financial staternents, our rponsIbIlity is to read the other information and, in doing so, consider whether the other information is materlalty Inconsistent with the financlal statements, or our knowledge obtained in the audit or otherwise appea to be materially rnisstated. If we identify such rnaterial inconsistenoes or apparent material misstaternents, we are required to determine whether there is a material misstatement in the financial statements or a material misstaternent of the other inforrnalion. If, based on the work we have perfortned, we conclude that there 15 a material mi5Statement of thi5 Other Information, we are required to report that fart. We have nothing to report in this regard. Matters on which we are required to report by exteption We have nothing to report In respect of the following matters where the Charities {Accounts and Reports) RUlationS 2008 requires us to report to you il, in our opinion.. the inforrnation given in the Trustees. Annual Report is inconsistent in any material respert with the rinanoal statements,. or suffiaent accounting records have not been kept,. or the financial statements are not in agreernent with the accoLtnting records and retums- or we have not received all the inforrnation and explanations we require for our audit. En addition, we have tK)thing to report in respett of the following matter where the Housing and R4eneration Att 2008 requires us trj report to you if, in OLTr opinion.. a 5atisfartory system of controi over transactions has not been maintsined. Responslbllities of trustees As explained more ful in the gtatement Of trustees, responsibilities set out on ge 8, the trustees are r&pDnsible for the preparation ol the financial statements and for being satisfied that they give a true and ir view and for such internal control as the trustees detemiine is neCeSry to enable the preparation of flnancial statements that are free from rnaterial misstatement, whether due to fraud or error. En preparing the financial staternents, the trustees are rÈsw)nsible for aSsen9 the Charity's ability to continue as a going concern, disdosing, as applicable, matter5 related to going concern and using the going concern basis ol accounting unless the directors either intend to liquidate the Charty or to ce35e operations, or have no realistic alternative but to do so. Paw 11
THE FAVERSHAM MUNICIPAL CHARITIES 2010 XNDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARMES 2010 Audltors, responsibilities for the audit of the financial statements Our objettives are to obtsin reasonable assuran about whether the financial statements as a whole are free from material Mitatement, 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 detett a material misstatement when it exists. Misstatements can arise frorn fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic deCIsn$ ol users taken on the basis of these finanoal statements. Irregulartties, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our respon51biliti&, outlined above, to detert rnaterial misstatetnents in respect of irregulaiities, induding fraud. The exient to which our pT0ureS are Capab of detectin9 irregu5arities, including fraud 15 detailed below: Capability of the audit in detecting irregularities ir)cluding fraud Based on our understsnding of the Charity, we have considered those kws and regulations that have a direct impart on the preparation of the financial statements such as the Charities Act 2011. We evaluated management incentives and opportunrfcies for fraudulent manlpulatSon of the financial statements including management override, and considered that the principal risk wa5 related to the posting of inappropriate purnal entries to improve the result before tax for the year. We dl9ed audrt ProdUreS to rpond to the risk, recognising that the risk of not detecting a terIal misststement due to fraud is higher than the risk of not detecting tsne res1n9 from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. procedu perfortned by the audit team included.. Discussions with management regarding known or susperted instsnces ()f non-cornplian with law5 and rulatiOns. Evaluation tsf controls deslgned to prevent and detert irregularities,. and Assessing journal entries as part of our planned aLJdrt approach. There are inherent limitations in the aud proced*Jres described above, and the further removed non- Complian with laws and regulation5 is from the events and transartions refiectsd in the financial 5totements, 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 eden of bias by the directors that represented a risk of material misstatement due to Fraud. A further description of our SponSIbl11teS for the audit of the financial ststements is located on the Finanaal Reporting Counol's WeIte at.. www.frc.org.uklauditorsre5ponsibilities. Thls description fomis part of our awjitors report. Magee Gammon Corporate kntnited is eligible for appointment as auditor of the tharity by virtue of its eligibility for appointment a5 auditor of o company under settion 1212 of the Companies Att 2006. Page 12
THE FAVERSHAM MUNICIPAL CHARMES 2010 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FAVERSHAM MUNICIPAL CHARrrIES 2010 USÈ of our report This report is made solely to the charitys trustees, as a body, in accordance with Part 4 of the Charities (Account and Reports) Regulations 2008 and section 137 of the Houslng and Fiegenerab"on Art 2008. Our audit work has been undertaken so that we might stste lo the charity'5 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 restx)nsibility to anyone other than the charity and its trusiees as a body, for our èudit work, for this report, or for the opinions we have formed. Mr Andrew J Childs FCA (Senior Statutory Auditor) For and on behalf of Magee Gammon Corptrrnte Limited Chartered Accourhtants statutory Audltor Henwoi)d House Henwood A£hford Kent TN24 8DH Pèg2 13
THE FAVERSHAM MUNICIPAL CHARITIES 2010 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024 Notes 2024 R£%tricted 2024 Unrestricted 2024 Total 2023 Total Turnover 379,409 379,409 349,805 Opernting costs Direct costs Support cost5 (437) {2131 1264,1081 169,7421 1264,545) 169,9551 1328,649) 170,803) 650 333 850 334 500 399 452 Operating (deficit)lsurplus 650 other Income Donations and legaci Interest receivable and other incorne Gains on inve5trnent disposals 45,000 6,923 16.433 4,789 55,967 117.496 49,789 62,890 133,939 246 618 25,482 38,654 1,365,233 17 178 252 1420 369 OthÈr Èxpendlture Interest payable InVtrnent management expenses Grants payable Governan costs 14 {16,195) 16,444) 13,082) {30,788) 167,302 116,1951 {7,4311 13,082} 132,808) 232,011 116,3471 {8.9601 (3,8151 (11,7511 1,329,849 1987) io 12,020) 64,709 (Deftclt)1Surplus for the year Unrealised gainsl(lossesl on investrnents Total comprehensivo incomel {expenditure) for the year 17 1260 266 152 935 bèhalf of the trustees: r D H S Simrnon5, Chairman lon beha ol the CIO) Mr M Gates, Vice Chairmèn lon beha of the CIO) *(,kw f LoffjJcv' C Flanagan, Clerk to the Tru5tee5 Page 14
THE FAVERSHAM MUNICIPAL CHARrriES 2010 STATEMENT OF CHANGES IN EQUITY ENDED 31 DECEMBER 2024 Revenve Reserves Designated Reserves Restrirted Funds Totsl Balanceat l January 2023 Surplus I Ideficitl from statement or cornprehensive Income Unrealised Ibssesl I gain5 on investments 2,709,324 265,962 210,424 3,185,710 1,185,667 {1,033,3571 {53,0041 {68,664) 197,186 1158,2451 1,329,849 11,260,266} 2,861,634 144,294 249,365 3,255,293 Transfers between funds 1244,937) 274,187 129,2501 Balance at 31 December 2023 2 616 697 418 481 220 115 3 255 293 Balance at l January 2024 Surplus I Idefiatl from statement of cornprehen&ve income Unrealised (bsses) 19ains on iThtments 2,616,697 418,481 220,115 3,255,293 223,225 161,0301 {55,9221 18,6991 64,709 {9,3461 232,011 (79,075) 2,778,891 168,547 353,860 1129,2831 275,478 (39,2631 3,408,228 Transfers betryeen funds Balance at 31 DeCeMr 2024 2 947 438 224 576 3 408 228 Pag8 15
THE FAVERSHAM MUNICIPAL CHARTtIES 2010 STATEMENT OF FINANCIAL posrrioN AS AT YEAR ENDED 31 DECEMBER 2024 Notes 2024 2023 Fixed assets Tangible fixed assets Investments 16 17 2,814,026 1,377,408 2,322,660 1,57S,500 4,191,434 3,989,160 Current a55ets Trade and other debtors Cash and cash equivalents 18 27 224,081 179,254 390,159 171.398 403,335 561,557 Creditors: amounts falling due within one year 19 160,852) 155,3291 NÈt current assets 342,483 506,228 Total assets less current liabilities 4,533,917 4,404,388 Credltor5: amounts falling due after more than one year 20 (1,125,688) {1,149,0951 Total net assets 3 408 229 3 255 293 24 Revenue reserve Designated reserves Restricted reseNes 2,947,438 224,575 236,2J6 2,616,697 418,480 220,116 3 408 229 3 255 293 These financial ststements were approved by the truste and authori5ed for i55ue on .J..ip...J4cLJL .. 2025. n beha of the trustees.. Mr D H S Simmons, Chairman lon behalf ol the CIO) Mr M Gates, Vice Chairrnan lon behalf of the CIO) C Flanagan, Clerk to the Trustees Pe 16
THE FAVERSHAM MUNICIPAL CHARrriES 2010 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Net cash generated operating actlvltles 201,004 1247,2561 Cash flow from 5nvestlng aetlvltles Dividends, interest and rents from investments Purchase of tangible fixed a55els Proceeds from sales of investments Purchase of investments 62,890 1507,2981 1,547,048 11,294,094) 191454 38,654 1119,6721 1,869,699 11,538,145) 250 536 Cash flow from ffinanclng attlvities Repayment of borrowings 11,6941 11,5471 Net change In cash and cash equfvalents 7,856 1,734 Cash and cash equivalents at the beginning of the year 171,398 169,664 Cash and cash equivalents at the end of the year 179 254 171 398 Page17
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting poliaes 1.1 Basis of preparatlon The financial ststements have been Prepa to give a'true and fair. view and have departed from the Charityes (Accounts and Reports) Regulations 2008 On to the extent required to provide a 'true and fairf view. The departure has involved following the chariti SORP IFRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Chariti. Statement ol Recornmended Practi effective from l April 2005 which has since been withdrawn. The financial statements have been prepared under the historical cost convention with iierns recogni5ed at C05t or tran5artion value unless otherwise stated in the relevant notes to these accounts. The financial 5tatement5 have been prepared in accordan with the Statement of Recommended Practi. Accounting and Reporting by Charities preparing their accounts in accordance th the Financial Reporting Standard applioble in the UK and Republic of Ireland {FR51021, Houslng SORP 2014.. Statement of Recomrnended Practice for Registered Social Housing Providers and complv with the Accounting Direction for PrNate Registered Providers of Sotial Housing 2015 and Charities Att 2011. The Faversham Municipal Charities 2010 consts.iu a public benefit entty as defined by FRS 102. 1.2 Income All income is recognised once the Charlty has entitlement to the income, it is probable that the income will be e1ved, and the amount ol income re1vable can be measured reliably. For legacie5, entidement is tsken as the earlier of the date on whlch either: the Charity 15 aware that probate has been granted, the estate has been finalised and notific3kn.on ha5 been made by the executorls) to the Tmst that a distribution has been made, or when a distribution is received from the estate. Receipt of a Iary, in whole or in part, is only considered probable when the amount can be measured reliably, and the Charity has been notified of the executors intention to make a distribution. Where kgacies have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income reCOgnon have not been rnet, then the legacy is treated as a contingent asset and disdosed if rnaterial. Donated servi5 or facilities a retnISed when the Chority has control over the item, anv 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 kn.me of the Frlends is not recogntsed and refer to the trustees, report for more infomatton about their tontribution. On reipt, donated professional servi5 and donated facilities are recognised on the basls 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 ol equivalent economic benefit on the open market,. a corresponding amount 15 then recognised in expendituie in the period of reIPt. Income tsx recoverable in relation to donations received under Gift AJ"d 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. Tumover represents rental income (net of void losses), other income re1vable from PToperties owned by the Association and aTnort15ation of Social Housing Grant {SHG) under the accrual method. Page 18
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Attountlny polldes (contlnued) 1.3 Expenditure Expenditure is recognised once there is a legal or construrtive obligation to transfer economlc benefft to a third party, it is probable that a transfer of economic benefits will be required in settlernent ond the amount of the obligation can be Measure reliably. Expenditure is clalfIed by artivlty. The costs of each attivlty are made up of the total direct costs and shared costs, inclLJding support Costs involved in undertaking eèch attNity. Dirert costs attributable to a single activity are allocated directly to that activity. Shafed costs which contribute to more than one activity and support cost which are not attribLrtable to a single artivity ère apportioned beiween those artiMties on a basis consistent with the use of reSoUrs. Central siaff costs are albcated on the bosis ol time spent, and depreciation charg are aSlocated on the rtion of the asset's use. Support Costs are those costs incurred directly in ssjpport of expenditure on the object5 of the Charfty and include project5 managements orried out at Headquarter5. Governance costs are those incurred in connertion with administration ol the Charity and compliance with constitutional and statirtory requirements. Costs of generating fijnds are Costs inCUd in a8(9 voluntary income, and those incurred in trading aclNities that raise funds. Charitable attivf(ies and Govemantr costs are costs Incurred to the Chanty's education31 operètions, including support costs and costs rekting to the goverTran of the Charity apportioned to charitable rtiiqties. Grants payable are charged in the year when the offer is made eXpt in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attachiry are fulfilled. Grants offered subjert to condition5 which have not beern met at the yearnd are noted as commitment, but not accrued as expenditure. 1.4 Tangible fixed assets and depreciation A VIeW for Impairment of a fixed assets Is caryiert out If events or changés in (ircUmstsnS Irlcate that the Carryn9 value of any fixed asset rnay not be recoverable. Shortfalls tseeen the carrying value of fixed assets and ther recoverab amounts are recognised as impairments. Impaim)ent1055es are 09n]Sed in the Ststement of comprehens(ve income. Tangible fixed assets are carried at CL¢ net ol depreciation and any provi51on for imp3irrnents. Depreciation is provided èt rates talcLJlated to write off the cost ol fixed assets, les5 their estimate residual value, over their experted useful live5 on the following base5.' Freehokl Property Fixtures and fittings Roots Bathrooms Kitchens Boilers 50 years 25 years 50 years 25 years 25 years 20 year5 Page 19
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (contlnued) Freehold land 15 not subjert to depreciation. Housing properties are stated at their historical ct less depreaation and any provision lor impairment. Costs include the cost of acquisition, construction and irnprovement. Irnprovements are works which in an enhanMent of the economic benefits ol the asset to the Charity arising from an increase in the net rental income over the Ilfe of the asset, such ès the reduction of future maintenance costs, or which results in the 5BJnificant extension ol the useful economic life of the property. Depreciation 15 (harged so as to write down the cost or valuation Inet of Housing Association Grant, and other capital grants) of the freehold housing properties and major components on a straight-line basis over their expetted useful economic lives. Major components are treated as separable assets and depreciated over their experted useful economic lives or he lives of the struciure to which they relate, if shorter. The estirno useful economic life for each component has been based on the Charity's current experien of component replaMent. The Charlty wlll continue to monitor ar review the useful economic life of each component and make revisions where susiained 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 charyed 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 subsequendy measured at fair value at the Statement of financial position date, unless fair value cBnrK)t be measured reliably in which case it is rreasured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined atyj shown In the headlng 'Gains/ (losses) on investsnents on the Ststement of comprehensive income. 1.6 Interest receivablè Interest on funds hekl on deposit is included when receivable and the amount can be measured reliably by the tharity,. this is normally upon notification of the interest paid or payable by the Bank. 1.7 Debtor5 Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the atnount 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 investsnents 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 CHARrriES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Atttsuntlng pollcles (contlnued) 1.9 Liabilities and provisions Liabilities are recognised when there is an obligation at the Statement ol flnancial position 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. Liabilits"es are recognised at the amount that the Charlty antitipates it wlll pay to settle the debt or the amount it hès received as a(tvanced payments for the goods or servi5 it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effert 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 speofic to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 1.10 Financlal Instruments The Charity onSy has financial assets and financial liabilities of 3 kind that qualify as basic financial instruments. Basic financial instruments are initially cogniSed at transaction value and subsequenlly measured at their settlement value with the exceptTon of bank k)3ns which are subsequently measured at amortised tost using the effertive interest method. 1.11 Penslotts The Charity operates a defined contribution pension scheme and the pensi charge represents the amounts payable by the CharTty to the fund in respert of the year. 1.12 Fund accounting General funds are unrestritted funds which are avaiL3ble for use at the discretion of the trust in furtherance of the general objectives of the Charity and which have not been designated ft>r Dther purFM)SW. Designated funds comprise unrestricted funds that have been set asde by the trustees For particular purtK)se5. The aim and use of eh designated fL)nd Is set out in the note5 to the financial ststerrents. Restricted funds are fuNJs which are to be used in accordance with specific iestrictions imposed by donors of whith have been raised by the Charity for particular purposes. The c05t of raising and administering such funds are charged against the specific fund. The airn and use ol each restricted fund is sel out ln the not to the finanaal ststements. Investment income, gains and losse5 are allocated to the appropriate fund. 1.13 Critical accounting estimates and ?reas of judgemeDt Estimates and judgernents are Continual evaluated and are based on historical experien and other factors, induding expectats'ons of future events that are believed to be reasonable under the orcuTnstanTr5. Critical accounttng estimates and assumptions.. The Charity rnakes estimatss and assumptions concerning the future. The resulting accounting estimates and assumptr.ons will, by definition, seldom equal the related actual results. The estitnates and a5SUtnpb"ons that have a signifitsnt of causing a material adjustment to the carrying amounts of assets and Ilabilities within the next year are discussed below. Pa9e ZJ
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Accountlng policies (continued) Critical orea5 of judgement.. The trustees have reviewed the a5sel lives and residual valves of all fixed asset da5ses and have concluded that the asset lives and residual values are appropriate. 1.14 Social Housing Grant Social Housing Grant ISHGI is Ljsed to duce the capital costs of housing property. 5HG initially recognised at fair value as a long-term liability. specificalw 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 accordan with the accrual rnethod applicable to social housing landlords holding housing properties at cost. 1.15 cycl11 Repairs and Maintenance The Charity has established a Tegular prograrnme of cyclital repairs and rna1ntenan. Costs are charged to the Revenue account in the year in which they are inojrred. 1.16 Extraordinary KepaiTS Costs of Extraordinary Repair5 unle55 representing irnprovements 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. P24e 22
THE FAVERSHAM MUNICIPAL cHARIE5 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 2. Income from donations and legacles Restricted funds 2024 Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 Donations Legacies Grants 738 738 482 45,000 4,051 49,051 25,000 TotJ12023 482 3. Tumover from social housing lettings Restrirted Unre5trirted Totsl Total funds funds fund5 funds 2024 2024 2024 2023 Weekly rnaintenance contributions Less.. low from voids 415,826 {58,1301 415,826 {58,130) 377,042 148,9501 357,696 357,696 328,092 Social housing grant utili5ed 21,713 21,713 21,713 379 409 349 805 Tota12023 349 805 349 805 Accommodation in management 2024 2023 Houslng for older people in need 69 69 Page 23
THE FAVERSHAM MUNICIPAL CHARThIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 4. Investment Income Restricted funds 2024 Unrestritted funds 2024 Total funds 2024 Total funds 2023 Local listed inve5ttnent5 Locol invesfrnent properties Local cash 6,704 52,493 18 3,456 59,197 18 3,675 35,473 17 3,164 219 Tota12023 5. Investment management costs Restrirted fund5 2024 Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 Investment rnanagernenl fees 987 7,431 8.960 987 Tota12023 6. Analysis of grants Grantsto Grants to Individuals 2024 Institutions 2024 Totsl 2024 Totsl 2023 Almshouse & Chapel Branch Relief in Need Brdnch Education Branch The Faversham Heritage Fund & Henry Hatch Charity Recreatiorl Branc 1,495 2,320 572 1,000 1,572 572 Tots12023 Pa9e 24
THE FAVERSHAM MUNICIPAL CHARITIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 7. Analysis of expendlture on Charitable actfvlties Restricted funds 2024 Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 AlhOuSe & Chapel Branch Relief in Need Branch Education Branch The Faversharn Heritage Fund & Henry Hatch Charity Recreation Branch 351,034 209 1,782 351,034 209 1,782 414,903 1,747 2,579 213 213 102 273 112 102 213 353 127 353 340 419 614 rota12023 273 419341 419 614 Page 25
uj
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 10. Governance costs Restrlcted funds 2024 Unrestrlrted funds Total funds 2024 Total funds 2023 2024 Auditors remuneration 753 8,763 9,516 9,450 Legal & professional fees 1,170 21,457 22,627 1,636 Trustee indemnity insuran 97 586 665 665 rots12033 650 During the year ended 31 December 2024, the Charity incurred the following governan costs.. E27,36112023-£JO,000) included wlthin the table above in respect of the Almshouse & Chapel Branth. £1,43912023-£462) included within the table above in respect of ihe Relief in Need Branch. £1,65112023-£530 included within the tsble above in respect of the Education Branch. E2,02012023-£JOS) included within the table ai))ve in respect of the Recreaty"on Branch. E33712b23-£650) included within the table aLve in respect of The Faversh3rn Heritage Fund and Henry Hatch Charity. Pa9e 28
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 11. Analysis of expendlture by expendlture type Stsff costs 2024 other costs 2024 Depreciation 2024 Totsl 2024 Total 2023 Investment management fees 7,431 7,431 8,960 Costs of raising funds Almshouse & Chapel Branch Relief in Need Branch Education Branch The Faversharn Heritsge Fund & Henry Hatch Charity Re¢atIOn Branch 106,868 15,932 226,724 209 1,782 349,524 209 1,782 414,903 1,747 2,579 213 213 273 112 102 102 Charitable artivities 106 868 233 984 351830 419 614 Expenditure on governance 32,808 32,808 11,751 106 868 269 269 392 069 rota12023 325692 12. Net Income l (expenditure) 2024 2023 Auditors remuneration Depreaation 9,516 15,932 9,450 16,609 No trusiees reiVed any remuneration, benefits in kinds or reimbursement of expenses (2023 - £nill. The Clerk to the Trustees re1Ve ernoluments of £53,22912023- £54,638). Page 29
THE FAVERSHAM MUNICIPAL CHARThIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 13. Staff costs 2024 2023 Wage5 afKI Salaries Social security costs Pension costs 101,551 2,855 2,462 93,141 2,674 2,209 The average number of persons ernployed by the charty during the year was as follows.. 2024 No. 2023 No. Scheme Manager (Part timel Caretsker and cleaner Administration No Èrnpk)yee received remuneration above £60.000 (2023 - none). 14. Interest payable 2024 2023 On loans wholly or partly payable in > 5 years 16,195 16,347 15. T4xation Fartors èffecting tax tharge forthe year The Housing Association Is a Registered Charity and is therefore exempt frorn liability to taxation on Its income and capitsl gains. Fathr4 that may affert future tax tharyes There were no factors that may affect fvture tsx charges. Poye 30
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 16. Tangible fixed assets Freehold property 2024 Fixtures and ftting 2024 Total 2024 Cost or valuation At l January 2024 2,804,432 390,109 3,194,541 Addth"ons Disposals 486,951 130,000} 20,347 507,298 (30,000) At 31 December 2024 3 261 383 410 456 3 671839 DÈprecSatlon At l January 2024 Charge for the year Depreaation on disposals 798,077 73,804 15,932 871,881 15,932 (30,0001 130,000) At 31 Dernber 2024 768 077 857 813 Net book value At 31 December 2024 2 493 306 320 720 2 814 026 At 31 Decernber 2023 006 355 316305 The above details relate to improvements and developments of the properties whith were tranSferd on I January 2013 from Faversham Unlted Munidpal Charitles and there are no records of original cost of them. They were funded by Houslng corporaon Grants totalling El,737,OD9.91 and Residual Mortgage Loans of £57,523 at an annual interest rate of 14% per annum over 30 Yea from l November 1982, and £190,465.24 al an annual interest rate of 9.375010 pei annum over 60 years from l Ottober 1989. The balance was provided frorn ihe Charity's resour$. Page 31
THE FAVERSHAM MUNICIPAL CHARrriES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 17. Investments 2024 2023 SPW Global Corporate Bond Q Inv- 104,559.49 units12023- 0} SPW Global Govemment Bond Fund Q- 223,952.82 units12023- 0) Schroder Global Equity Cornponent Fund - 243,094.24 units 12023- 0) Schroder Global Equity Income Fund- 224,332.96 units12023- 0) Schroder Income Fund- 141,543.29 units12023- 106,755 228,880 129,253 198,041 97,792 SPW Global (Ex UK) Equity Fund Q Inc- 64,359.43 units 12023- 0) iShares North American Fund - 554.41 units (2023 01 ICVC High Income & Emerging Market- 58,533.32 uniis12023 511,403.871 ICVC Global Investment Bond Fund - 127,168.53 units12023 618,153.441 ICVC Global Sovering BOT Fund- 253,476.04 units12023 - 54,S60.591 Vanguard Global Corporate Bond Fund- O unlts 12023- 1,826,781 ishares Japan Equity Fund Fund- O units12023 - 18,678,371 5chroder US EquTty Income Fund- O units12023- 16,251.501 SPW UK Equity Income Fund - O units {2023- 90,530.60) SPW Asia Global Emerging Market- O unlts12023 - 29,105.161 SPW Jbpanese Equty Fund - O units {2023 - 7,915.L5) SPW North American Equity Fund- O units12023- 69,144.16) SPW Global Real Estate Fund - O units12023 - 45,055.741 Charities Investment Fund ERF Scheme- 142.61 units (2023 - 204.611 188,544 7,949 48,161 416,641 108,131 528,336 226,734 49,375 153,098 19,247 11,140 146,750 ,855 8,873 81,521 85,921 37,166 50,743 1377 408 1575 500 The cost of investmenLq at 31 Dember 2024 is as fdlows.. 5PW Global Corporate Bond Q Inv SPW Global Government Bond Fund Q Schroder Global Equity Comptsnent Fund Schroder Global Equity Incorne Fund Schroder Incorne Fund SPW Global IFX UK) Eovity Fund Q Inc Ishares North Amertcan Fund 107,592 231,567 125.923 197,613 98,786 166,961 6,860 Pe 32
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 17. Investments {continued) ICVC High Income & Emerging Market ICVC Global InvestThenl Bond Fund ICVC Global Sovering Bond Fund Vanguard Global Corporate Bontj Fund IShar Japan Equity Fund Fund Schroder US Equity Income Fund SPW UK Equity Income Fund SPW 13 Global Ernerging Market SPW Japanese EqLJity Fund SPW North Arnerican Equity Fund SPW Global Real Estate Fund Charities Investmert Fund ERF Scheme 44,038 100,782 228,332 384,320 488,804 46,714 142.584 18,494 10,900 140,141 23,357 8,564 77,856 77,856 16,097 11,219 1 319 672 1432 687 17. Investments (continued) 2024 2023 Market Value at l January Additions isposa15 Realised surplus Unrealised defi(it 1,575,500 1,294,094 {1,547,048) 133,939 179,0761 1,811,087 1,538,145 11,869.6991 1,356,233 11,260,266) 1377 406 1575 500 18. Trade and other debtors 2024 2023 social housing rent arrears other debtors Prepayments and accrued income 4,262 1,045 200 388,914 219,819 224 081 390 159 Page 33
THE FAVERSHAM MUNICIPAL CHARThIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued} FOR THE YEAR ENDED 31 DECEMBER 2024 19. Credltors: amounts falling due within one year 2024 2023 Other loans Accruals and deferred income Deferred grant 1,546 37,593 21,713 1,546 32,070 21,713 20. Credltors: amounts falling due aftèr more than one year 2024 2023 Deferred 9rant other loans 955,342 170,346 977,055 172,040 1 125 688 1 149 095 21. Deferred Income 2024 2023 BalarKe brought forward Released in year Deferred during the year 4,653 14,6531 9,630 2,558 12,5581 4,653 Balan carried frxward 22. Deferred grants 2024 2023 BalaTh brought forbyard Released in year 998,768 121,713) 1,202,481 121,713) Balan carried forward 977 055 998 768 The deferred grant represents a capital 9rant Te]Ved in 1980-84, 1988-91, 2003 and 2004-05 for tt rnoderni5ation 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 FR5102. Page 34
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 23. Loans 2024 2023 Due wlthln l Yeai Due within 1-2 Years Due within 2-5 Year5 Due In > 5 Years 1,546 1,550 4,750 164,D49 1,411 1,550 4,750 165,740 Balance carried forward 171,892 173 586 Loans are secured over the assets conrned. Page 35
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 24. Statement of funds ststement of funds- current year Balance ati January 2024 Balance at31 December 2024 Income Expenditure Transfers Inlout Gain51 (Losses) Designated fvnds Cyclical maintenance rund Emergency repair fund HousiTrg redevelopment fvnd Roof repair fund Roof phase I fund 72,036 136,300) 68,547 104,283 50,742 129,8421 59,830 1,423 82,153 1,913 99 17 2,028 25,000 25,000 268 788 418,479 257 677 129 283 224 575 General fitnds General fund5 Education branch Retreayon branth Relief in need branch 2,596,506 428,304 1315,5101 181,128 34,308 2,924,736 6,345 5,659 14,2401 14.6721 5,798 8,890 1,498 1,172 (6031 11,0171 1,181 2,231 12,348 3 035 176 4,932 (3,8611 390 356 16,8921 5,055 11,582 3 172 013 Restricted nds Organ maintenance fund Faversham Heritage fund and HH Charlty Roof repair 3,550 (4371 3,113 216,566 6,923 45,000 (3.2191 5,737 145,0001 7,097 233,103 220 116 236 216 Total of funds 3 255 292 492 088 3 408 229 Page 36
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 24. Ststement of funds (continued) Statement of nds- Prior Year Balance atl January 2023 Balance at31 December 2023 Income Expendlture Transfers Inlout Gainsl (Losses) Deslgnated funds Cyclical illtenan fijnd Emergenry repair fund Housing redevelopmerit fund Roof repair fund Roof phase I fund 78,453 1125,4271 119,010 72,036 160,660 (7,9251 1113,6751 11,682 50,742 1,846 25,000 1,913 25,000 268 788 418 479 268 788 274 187 113 352 General funds General funds Education branch Recreation brarbch Relief in need branch 2,690,469 5,256 3,541 375,820 3,972 826 {297,305) 14,082) 1418) 1226,5891 (7,9451 14,3131 54,110 9,145 1,863 2,569,506 6,345 1,498 10,058 3,463 (3,056) 16,090) 7,973 12,348 2 975 286 384 080 438 213 3 035 176 Restrirted fund5 Organ maintenance fvnd The Faversham Heritage fund and Henry Hatch Charty 3,550 3,550 206,874 29,861 12,112) 129,2501 11,193 216,566 210 424 220 116 Total of funds 3 185 710 413 941 3 255 292 Page 37
THE FAVERSHAM MUNICIPAL CHARITIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 24. Statement of funds (continued) Summary of funds - Current Year Balance ti January 2024 Balance at31 December 2024 Income Expenditure Transfers Inlout Galnsl (Losses) De51gAated funds General funds 418,480 2,616,697 99 440,066 166,142) 1324,214) 1129,283) 168,547 1,423 46,342 224,575 2,947,438 3 035 176 210,116 465 165 51,923 390 356 {3,6561 3 172 013 236,216 Restricted funds (39,2641 7,097 3 255 293 492 088 3 4108 229 Summary of funds- Prior Year Balance atl January 2023 Balance Income Expenditure Transfers Gainsl (Losses) at31 Inlout December 2023 Designated funds General funds 265,962 2,709,324 (133,352) (304,861) 274,187 1244,937) 11,862 73,091 418,479 2,616,697 384,080 3 975 286 384 080 438 213 3 035 176 Restricted fvnds 210,425 29,861 12,1121 129,2501 11,193 220,116 3 185,709 413,941 440,325 95,966 3 255,292 Page 38
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 25. Analysis of net assets between funds Analysis of net assets between fund5- current year Restricted funds 2024 Unrestricted funds 2024 Totsl funds 2024 Tangible fixed assets Fixed a55et investments Current assets Creditors due within one year Creditors due within more than one year 2,814,026 1,161,227 383,300 160,852) 11,125,688) 2,814,026 1,377,408 403,335 160,852) (1,125,688) 216,181 20,035 236 216 3 172 013 3 408 229 Analysis of net assets between funds- prlor year Restricted funds 2023 Unrestrlcted fndS 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due within more than one year 2,322,660 1,373,012 543,929 155,329) 11,149,095) 2,322,660 1,575,500 651,557 155,3291 11.149,0951 202,488 17,628 220 116 3 035 177 3 255 293 Page 39
THE FAVERSHAM MUNICIPAL CHARITIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 26. Reconclliation in net movement in fund to net cash flow from operatlng activities 2024 2023 Net incomellexpenditure) for the year Adjustments for: Depreciation charges (Gainsllbsses on investments Dividends, interest and rents from invtments Loss on the sale of fTxed assets (Increase) I decrease in debtors (Decrease) / increase in edItorS 152,935 69,583 15,932 154,8631 162,8901 16,609 195,967) 138.6541 166,078 116,189) {179,994} 118,833) Net cash (used in) I by operating activities 247 256 Analysls of net debt Atl January 2024 At31 December 2024 Cash flows Cash at ballk and In hand Debt due after l year Debt due wlthin l year 171,397 1172,040) {1,5461 7,857 1,694 179,254 1170,346) {1,546) {2,188) 9,542 7,362 27. Analysls of cash and cash equivalents 2024 2023 Cash in hand 179,254 171,398 28. Grant commitments At the 31 December 2024 the Charity had commitments as follows: 2024 2023 within one year Betsween one and two years Page 40
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 29. Pension commitments The Charity operates a defined contribution pension scheme. The aetS OF the scheme are held separately from those of the Charity in an Independently administered fund. The pension cort charge represents contribution5 payable by the Charty lo the fund and amounted to £2,462 12023 - £2,209). Contributions totalling Enil {2023 - £nill were payable to the fund at the Ststement of financial position date. 30. Related party transartions Cllr lackstsn is a member of Swale Borough Council. Cllr C Martin and Cllr T Martin are mernbers of FaveT5harn Town Council. During the year lease payrnents were received lotslling £1 (2023 £1) from Swale Borough Counal lor a recreation park held by the Charity. This is in respett of a long lease entered in 2010. The council10 cannot use their po%titrn to their aovantrdge. No tllonies were outstanding at the year end. 31. Leases arrangements At the 31 Dember 2024 the Charity had future incoming resources from non-cancellable lease agements a5 follow5.. 2024 2023 Within one year Between one and years Between iwo and five years More than five years 32 33 35 36 32. Capital commitments At the 31 December 2024 the Charlty had ctsmmitments a5 follows: 2024 2023 Within one year ii,iii 268,788 ii.iii 268,788 Page41