Charity number 1140259 THE FAVERSHAM MUNICIPAL CHARrriES 2010 REPORT AND FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 coKrEpirs Page Leyal and administrative details Trustees, ieport Independert auditors. report 9-12 statement of comprehenswe income 13 St*ernent of ¢hanges equ 14 Staternent of financial position 15 Ststernent of osh flo 16 Notes to the financlal statements l7-39
THE FAVERSHAM MUNICIPAL CHARMES 2010 LEGAL AND ADMINIsfRATIVE DEfAILS Trustees Munlcipal ChaeS of Favwsham Charlty regiStrHtivn number 1140259 Registered office 5 The Almshouses South Road Faver5h3m Kent ME13 7LU Auditors Mègee Gammon Corporate Limtted Henwo(xl House Henw¢x Ashford Kent TN24 8DH Banker5 National Westminster Bank Canterbury City Centre 11 The Pardde Canterbury 125Q Schroders Personal Wea l London Wall London EC2Y SEA Solicitors Fudey Page 39 St Margarevs Street Canterbury 12TX Poge I
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The TrLStees Present their annual report together with the audited finanoal statements of the charlty Faversham Munlapal Charities 2010 fthe Charityl for the year l January 2025 to 31 December 2025. The memtsers of the Board of TrUstS who have served during the year were: Muniapal Charities of Faversham (regtered charty 11900421 The members of the Board of Trustees of Municipal Charities of Faversham iaoi durir4J the year were.. Mr D H S Simmons, Chair Mr S A Fisher {rIgned 14 April 2025) Mr M 5 Gates, Wice Chalr Ms J Hennessey Cllr C Jackson Cllr C Martin Cllr T Mathn Mrs D Ne£me (reslgned 15 January 20251 Mr B PL3nner Mrs A ReYrId5 Cllr J Rowlands lappolnted by Faversham Town Councll 15 Aprll 2025) Mr A Shepherd MTS J Stonor {cLwpted 15 January 20251 Mrs M Vanden Berghe Dr E J Wilcox Mr L Young Iresgned 17 April 2026) STRuuRE, GOVERNA14CE AND MANAGEMENT Constitution The Charity has one corporate trustee, the Munkipal tharIe$ of Faversham ICIO), registered with the Charity Commlss(on (number 1190042), whlch In turn has a Board of Trustee5 and is they who administer the unincorporated trust, Faversham Muniopal Chariti'es 2010 Vthe Charity?. The Charity exists under ts govemin9 irtrument, a Charity COMMs1on scheme of 11 Dernber 2012, as amended on 31 May 2024, and, In relatSon to the Faversham Herltsge Fund and Henry Hatch Charity, is governed by a Charity Cornmi55ion scherne of 29 November 2012, as amended on 31 May 2024. Its area of beneffc is the town of Faversham as at 2012. The Charivs prinupal objectives are relief of poverty by provision of almshouses,. advancement of education by prowslon of grants and bursaries to organlsations or Individuals,. relief of poverty by the making of grants and payments to organisations or indidual5,. and provision of a recreation ground. The principal objettives of the heritage charty are preservation and improvement of historic building5 and townscape and landscape. There have been no changes in the obiectives Sin the last annual report. Method of appolntment or election of trustee5 The CIO is sole corporate trustee of the Charity and of the Faversh2m Herltsge Fund and Henry Hatch Charity by virtue ol its scheme of 29 November 2012, as amended on 31 May 2024. Under the scheme there should be five nominated twstees appointed for a four-year tenn by Faver5ha Town Counol at a meeting of the council and ten co-opted trusteff appointed for a fivtryear terrn by the trustees at a special meeting. In recent years, co-optlons 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 OT three candidates, who are asked to provide a CV. In appointing a co%)pted trustee, the trustees are mindful of the types of professional and volunteer experience that would assist the Charty's work. Page 2
THE FAVERSHAM MUNICIPAL CHARifIES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 New trustees are given the Charity'5 governing i[ruMent and latest accounts and a trustee dedaration and are invited to meet the Clerk and view the Charity's almshouses site. Organisational stwrture and de¢ision making Management of the Charity Ss the responsibility of the Trustees, The Board of TrLee$ has overall responsibility for achleving the Charws aims and obiectives. The Trustees meet quarterly to rewew the Charity's strategy and performance and to set objecbves, operating plans and budgets. A General Purposes Cornmittee deals with day-to-day running of the Charity, meeting in most months between quarterty meetings. The Appoirtments and Welfare Commitee meets as need& to consider matters relab.ng to almshouse re5idenLy. Working groups are occaslonally apptslnted fDr partlcular purposes. Rlsk management The trystees have assesse(l the major risks to which the Charity is exposed, in partlcular those related to operations and finan of the Charty and are saN&led thèt systems and prOdureS are in place to mitigate exposure to the major risks. Trustees, indemnitie5 Charity Protection Policy is in pkce wlth a £1 mlllion limit of Sndemnity, whith meets Charty Comrnission requifementg. OBJECTIVES AND AcnvmES Policies and objtrtiv¥ In setting objective5 and planning for attivrf(ies, the TrLEStees have given ¢Jue consideration to general guidance published by the Charity Commission and Home5 England relating to public benefit. The charities administered by the Trustees 3re set out below with general note5 on the operation5 and have all been disbursed in accord3n wth their respective schemes. Exatt finanaal 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 charftsble and of public benefft. The Charty compri585 four branth with the following objeciives.. For relief of povety by provision of almshouse accornmodation for people resident in the area of benefit for not less than five Yea preceding appcxntment and for such charitable purposes for the benefit of the residents as the trustees deude. Educatlon Branch For the advanment of educaknon by the provision of grdnts and bursarie5 to organisations or individuals resident in the area of benefit and pupils or fortner pupils of Queen Elizabeth's Grammar Schix)l. Relief in Need Branch For relief of poverty by PTowsion of grants and payments to organisations or IndivlduaLs resSdent in the area of benefit. Recreation Branch F provision of a CreatIOn ground in the area of benefit for the enjoyrnent of the public. and The Faversham Heritsge Fund and Henry Hatch Charity (linked charity 1140259-1), whose objects are PrerVatiOn and improvement of historic buildings, the distinctive character of the townscape, landscape and the creek and preservation of historic artefart5, regalia and cerernonials in the area of benefit. Page 3
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 Grant-maklng pollcles Grants are made to applicants in accordance the provisions of the trust schemes. ACHIEVEMENTS AND PERFORMANCE Going corKern After makn.ng appropriate enquir1, the Trustees have a reasonab expertakn.on that the Charity has adequate Te50urce5 to continue in Operational existence fvr the foreseeable future. For thi5 reason they continue to adopt the going cOnrn basis in preparing the financial statements. Further detsiLs about adoption of the going concem basis are In the Accounts"ng Policies. Review of artivities In June 2020, the Charlty CommIlOn confimied that the Munldpal Charitles of Faversham (CIO) had been suCcf11Y register&, following a process that began in 2017. In May 2024, the CIO became sole corporate trustee of the Charty and the Faversham Hertsge Fund and Henry Hatch Charity followin9 the 5atisfartory completion of proSeS with Hornes England and the Charity Commission. The ao holds the assets ie Faversham Almshouse5 and the Faversharn Recreation Ground. Durfng the year, work continued to develop pollcy dowments, to al$t with the management the Charity. The Trustees have reviewed the operation of the Charty and are satisfied that they have complled with their duty to have due regèrd to public benefit guidan when exercising their charitable purpose5. The TTUStees, at their April meth"ng, reviewed reserve funds of the four brantt*s and the hertta9e char/ and were satisfied that income had largely either tn used tsr was being held ready for gTant-recipients' projeLts to begin, wth no undue accumulation. This report provides highlights of the year. Grant%ivlng Is reported for each branch. Almshouse and Chapel Branth Provision of Almshouses The branch provides, at Its site In South Road, FaVersm, 69 almshouse units for about 75 beneficiarie5, t¢yJether with a chapel, a residents, k)unge, a laundry rooTll and a guesi room. The work ol this branch is primarily supported by Investment Income and by weekly malntenan contributions from almshouse residents. The 2021 quinquennial inspection of the bullding by our archltects identffied that the r(x)fs of the main 1863 building need repairing urgenuy. The Work to repair the roof of the southern block began in August 2023 and was Cornpted in August 2024. The work to repair the northern blod( commenced In July 2025 and ts due to be Complet in June 2026. A loan from the Charity Bank was tsken out to cover part of the cost of repair. Fundraising initiative5 for this essential work are ongoing. The Charty continued ts programme of ongoing maintenan, repair and refurbishment during the year. Repair spending was £43,241 for general everyday issues, and Cyclicdl Maintenance Fund spending wa5 E134,160, which included refurbishment of seven flats. The annual internal inspection of Residents, flats by a Surveyor, was undertaken in Novernber 2025, this was preceded by a mid-year inspection by the Charity's Staff. The Charitfs Appointments and Welfare Committee continues to monitor and refine proce55e5 for selecting altnshou5e residents to ensure that these Process are transparent and ensure appropriate appointments are in line with the Charity's scheme. Seven flats changed hands during the year. When there has been a change of occupant, each flat has been upgraded. Page 4
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Charrty took part in the South and South E35t in Bloom cornpetition and was awarded a Level 5 Award in the-lt's Your Neighbourhood" category by the Royal Horticultural Society. The grounds are not only tended to by professional gardene, also by some of the Residents. The Almshouses prowde go accornmodation and a supportive environment for about 75 beneficiaries. The Charity WO with various public agenci in admitting and supporting some residents with particular problems, g) prowdirKJ a wider benefit to sodety. The importantr of the Almshouses. service to the Faversham community has teen increased by major hougng assoaations. closure of two stes of shere housing for the elde in the town in recent years. Ridents, s"SfaCtion SuNe The tharity is committed to improving setmces and to revtewing what are ihe rn05t prominent 15sue5 and priorib for our residents by gathering thelr valuable feedback. A sumrnary of the Residents, Satisfacbon Survey carried out in 2024 are below: Question Very Satt5fied 58% Fairly Satisfied 26¥0 Satisfaction wth overall servi Satisfaction with repaits set from the Charity 58 31Vo satractIon with time tsken to complete most r&ent repair 54% SatisFattion wth providing a home that's well maintalned 61% Satisfaction of fellirv) safe living in your almshouse 61% 29% Satisfaction that the Charity listens to your views and acts uw)n them 55% 29V Satisfaction that the Charity keeps you infomied about things that Matter to you 58% 29 Satisfacbon that the Charity eats me fair and wSth respect- 52% 32% Satisfaction with the way that the Charity rLsponds to complaints 30% 40% Satlsfact(on that the Charity k&ps Communal areas clean and well maintaine 63% Satisfacbon that the Charity rnakes a positwe contribution to neighbourhoods 55¥0 26% Satisfaction with the way in which the Charity taeS anb- soaal behaviour 61% 19010 Com The Complaints Policy was UPKlated during the year tr> meet the qUIremeNtS of the Housing Qmbud5tngn Complaint Handling Code 2024. A copy of the policy is available on the Charity'5 webstte and in the Resident's Handbook. There were six complaints during the year, all of whith Page 5
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 rekted to anti-sooal behaviour contems. None of the complaints were referred to, or investigated by, the Housing Ombudsman Service. Trust&s reappc¥nted as Chaplairn the Rev Simon Rowlands, Prie514nhaTge at St Mary of Charity. Duriw the year, there was an increase in the use of the Chapel by external groups induding the Faversham Literary Festival, choirs, professonal musiaans and youth groups. Over 400 people attended events during December ak)ne. EducatSon Branch Trustees provi(Jed, for pupi15 of Queen Elizabeth's Grarnar SchcKJl, three prizes of £80 each frir academic excellen and three £80 awards to supwrt students in cont4nuing education. The three awards for SUPPDrt in tertiary edu(ation were listed as Andrew Teifer rnernorial awards. A grant of £500 was awarded during the year to the 7th Faversham Scout Group. Under Scheme aause 3916), on realboting surplu5 tncome. £2,210 was set aside towards the repair of the mshouse roof. Rèlid in Need Branch A gTrnt of £305 was awarded towards the cost of a new cooker. Under Scheme Clause 39(61, on reallocating surplus income, £3.742 was set aside tr) help with the repalr of the M$hoUse roof. FMC RÉcrÈation Braneh Ownership of the freehold of the 20-acre Faversham RecreatSon Ground, operated by Swale Borough Counal as le.rsee, has been transferred from the Charty to the CIO. The Charity holds rnode5t funds ror recreation branch purposes. Trustees continue to seek to ensure that the Rec seNes for the benefit and enjoyment of the public. Trustees are mindful that the goveming instrument by whlch they are specifical requires that the Rec be used as a public recreation ground. Under Scheme CLiuse 39161, on reallocating surplus Income, £220 was set asde towards the repair of the Alrnshouses roof. The Faversharn Heritage Fund and Henry Hatch Charity A grant of £2,904 was awarded during the year to Faversham Town Council Lowards the pair of Faversham town's regalia. £3,125 was set aside towards the repair of the AmShOu riK)f. Investment policy and performan The portfolio firiished the year £90,143 above the l January 2025 figure. Trustees rnonr Investments, and a 5chroders representative attends a fvll trustee meeting ts¥1 a yr to give update5 and answer question5. COIF is used to hold some funds for particular purposes. FINANCIAL REVIEW ReseNes policy In order to fund the maintenance and repair of the almshouse property from its own resources, the Charity holds cash and investrrents to generate income. If required, all opportunities for grants from stètutory authorities and other funders will be accsed. 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. Page 6
THE FAVERSHAM MUNICIPAL CHARTfIES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 Principal funding The gifts of past benefactors, mainfy In wSlls, fom the basis of the present charities and enable the Trustees to 5UPPOrt Faversharn today. Money donated in this way is invested so that incorne may be available for prnt and fvture generab"ons. Material Investments pollcy Sthroders Personal Weath manages the Charityes, rnain investments, seeking a balantrd return through a dfversled portfollo of collecte instnjments. Legacy Income at 31 December 2025, the charity had been nolified of one residuary legacy, the value of whlch Is Unrtain being rettNable ftorn the estate of Mr J N Coulter. At 31 December 2025, the legacy had a value of £2,022,156.75 and thls amount 6$ Ilded in these financial statements at the amount expected to be recelved. VALUE FOR MONEY (VFM) This rewrt sets out our VFM performance looking back over 2025 and provide5 VFM 13ryets going forward. It aims to provide the reader wlth a transparent account of how we are striving to make the most of the resources at our disposal in the pursuit of tsur strategic objectives. We positively encourage feedback and thallenge from our customers and other stskefv)Iders on our VFM perfomiance. The report 15 Structured to rneet the requlrements of the VFM Standard of the Reguktor of Social Housings Wlth whlch we must (Dmply as a Registered Prowder. Metri¢ RSH metrlcs 2025 2026 Taryet Global accounts kwer uartile 5.3Vo 0.6Q Reinvestment 0/0 New su delivered Wo New sooal housin su New non-social housi su Gearing D/0 - debt as a percentage of assets EBThDA MRI Interest Cover Vo Headline Social housin r unit ratin ma -.in 0/0 . social housin ratin ma in Wo- overall Return on capitsl employed (ROCE) Yes Yes Yes Yes Ye5 1% 0% 5¥0 OD/0 io% 35.wo Ye5 Yes Yes Yes Yes 10363% £10 250 -8.91U/¢ 76.04V 28.44fj 60% £10 000 io% io% 2¥0 62.2Qh 15.0 11.8% 2.3 In a very d¢fficult year, our staff have perfom)ed extreme well In continuing, and improvingi the provision of social housing. a tharity, we would expect our costs to be greater, and our operating margins and return on capbtal employed to be lower, than the gjobal rnetric5, to meet our charltable aims. The Charity usos Its reSoUrS tr) maintsin the prOPerte5 to a high standard, and to make improvements where possible, rather than acquiring new units,. this stratY is unlikely to change in the foreseeable fLthre, as a significant improvement programrne is planned to ComMere In the current year. FUTURE DEVELOPMENTS The Quinquennial Report in 2021 identified that the mfs of the main 1863 bulldlng need repairing urgentw. The work to repair the roof of the south-eastern block began in August 2023 and was COtnp1eted in August 2024. The work to repair the noth-western block commenced in July 2025 and is due tt> be completed in June 2026. A loan from the Charity Bank was taken t io cover part of the cost of repair. Fundraising inltiatlves for this e5*ntial work are ongoing. pe7
THE FAVERSHAM MUNICIPAL CHARMES 2010 TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 EMPLOYEE INVOLVEMENT AND EMPLOYMENT OF THE DISABLED Employees a kept inforrned of all matters that may directly affect them, and also on the day- day running of the Charity. In particular, regular consultation5 tske place spea"fica15y regarding residents and their Weare, and on matters identrfied which may requlre an update of policy. All employee issues are discussed wth Trustees, and support andlor appropriate action tsken without deL3y. In accordance wrth the requiremert for equal opportuntties, the Charty has established tdir ernployment practic* in recruitment, selection etc of disabled stsff. Stsff remuneration is reviewed annualty and any increase5 are based upon infiatlon figures. When available, rn0 specrfic comparis0t are mède with other almshouse tharbties OF a slmllar size and operation. TRUSTEES, RESPONSIBILMES ATEMENT The Trust are rponSIble for preparing the Trnstee5' report and the finanrial statements in accordance wth applicable law and Untted Kingdorn Accounting Skndards (United Kingdom Generally Accepted Accounting Practice). The law applicab to charities in England and Wales requires the Trustees to ppare financial statements for each finanoal year which give a true and fair view of the state of affairs of the Charity and of the incoming resour and appli¢JEn of resources of the Charity for that period. Jn preparing these financial statements, the trustees are required lo.. selett suitable accoUnng pollti¢s and then appw them con5iStenty; observe the methods and prinaples in the Charfties SORP; make judgments and accounting estimates that are reasonèbk and prudent; prepare the finanual statements on the going concern b5 unless it is inappropriate to presume thal the Charity will continue in operation. The Trustees are responsible for keeplng proper accounting records that are sufficient to show and explain the Charitvs trarctIOnS and disdose with reasonable accuraq at any bme the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Statemeftt of Recomrnended Prnckn Atcounting by Registered Social Hovsing Providers 2014 and the Accounting Direction for Private Registered Providers of Social Houslng 2015 and the prows1or of the trust deed. They are also responsible for safeguarding the assets of the Charity and hen for tsking reasonable steps for the Prevention and detertion of fraud and other Irregularities. This report was approved by the Trustees, on . alf by.. .l3&91.Tr)LTg.... 2026 and slgned on their Mr D H S Simmons, Chalr Mr M Gates, Vice Chair Mrs C Hanagan, Clerk to the Trustees Page 8
THE FAVER5HAM MUNICIPAL CHARTfIES 2010 INDEPENDENT AUDrroR'S REPORTTO THE TRusfEES OF THE FAVERSHAM MUNICIPAL CHARrriES 2010 Opinion We have audited the finanual ststements of Faversham Municipal Charities 2010 (the 'charity? for the year ended 31 Drnber 2025 which comprise the staternent of comprehensive income, the ststement of changes in equity, the ststernent of financial position, the stalernent of cash flows and the reL3ted notes. The finanaal reporting framework that has been applied in their preparation is applicable law and United KingdorD Accounting Standard5, including Finaniial Reporting Standard 102 'The Financval Reportirrtj Stsndard applicable in the UK and Republic of Ireland, (Unfted KiThJdom Generally ACpted AccountiThJ Prarti). The finanaal statements have been prepared in accordance with The Accounting Dilection for Private RIstered Providers of Soci41 Housing from April 2015 and the 5tstement of Recommerteil Prattice (SORPI AcCoun'ng 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 wrth the Generally Accept Accounting practi effective for reporting perIS beginning on or after l January 2019. In our opinion the financial ststements.. ge a trL* and fair wew of the stste of the tharrtys 2ffalrs as at 31 Detrmber 2025, and of tts incoming resources and application of resources, including its income and expendf(ure, for the year then ended,. have been properW prepared in accordan wlth Untrd Kingdorn Generally Atpted Accounting Practice- and have been prepared in aCcOrdae wf(h the ChaeS Act 201J, the Housing and Regenerotion Art 2008 3nd The Accounting Direttion for sla1 Housing in EnglaNd from April 2015. Basls for opinion We condutted our audit in accordance with 5ntemational Standards on Auditing IUKI IISAS IUK)} and applicab law. Our responsibiliti under those standards are fvrther described in the Auditors, responsibilities for the audit of the financial ststsments section of our report. We are independent of the charity in accordanTr with the ethi(21 requirements that are relevant to our audit of the fillanCl statements in the Unf(ed Kingdom, including the Financial Reporting Counal's Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordan wich th£%e reqireMeThts. We believe that the audit thfjden we have obtaird is suffioent and appropriate to prowde a ba515 for our opinion. Conclusions relatlng to golng eoncem We have nothing to report in respect of the following matter5 in relation to which the ISAS IUKI require us to report to you where,. the trustees, use of the going concem basis of accounting in the preparat'on of the financial sialements is not appropriate. or the trustees have not disclosed in the finanual thternents any identified mateTial uncertaintles that may cast %gnificant doubt about the charity's ability to continLJe to adopt the going concern basis of ccounting for a peri(Kl of at least twelve rnonths from the date when the financial ststements are authorised for issue. PB9e 9
THE FAVERSHAM MUNICIPAL CHARTfIES 2010 INDEPENDENT AUDITOR'S REPORTTO THE TRusfEES OF THE FAVERSHAM MUNICIPAL CHARMES 2010 Other information The trustee5 are resFK)nsible for the other information. The other inforrnation cOrnpri the information included in the Annual Report, other than the financial stalernents and our Auditor5, Report the0. Our opinion on the financial staternents does not cover the other information and, except to the extent otheiSe explIdt stated in our report, we do not eXPS any form ol assuran condusion thereon. In connection wlth our audit ol the financial ststements, our responslbility is to read the other infomatlon arKI, in doing so, consider whether the other inforrnation is materially inwnsi#enl wth the financial statements, or our knowledge obtsined in the aud or otherwise appears to be materralw misstated. If we identify such material inconsistenoes or apparent material misstatements, we are required to determine whether there is a material mi5ststement in the financial staterTJents or a material mis5tstement of the other information. Lf, based on the work we have perfornd, we condude that there is a material misststement of this other iriformation, we are required to report that fact. We have nothing to report in this regard. Matters on vthich we are required to report by exception We have Mthing to pOrt in re5pert of the following matters Whe the tharit5 (Accounts ond Reports) Regulations 2008 requires us to report to you if, in our opinion: the infomation gtven In the Trustees, Annual Report i8 Inconslstent in any material re5pett with the financial 5tstements- or fficient accounting records have not been kept. or the financial ststements are not in agreement with the accounting records and returns. or we have not CeiVed all the Infonnation and explanatio we require for our audiL In additB)n, we have nothing to report in rPert of following matter where the Housing and Regeneration Act 2008 requires us to report to you if, In our opinion.. satisfactory system of control over transartsons has not been maintsined. Respon5ibilitie5 of trustees As expl3lned more fully In the statemet)t of trustees, responslb(lltl set out on page 8, the twstees are responsible for the preparation of the finanoal statements arKI for being satisfied that they give a true and frd5r I4ew and for such intemal control as the trustees detemiine is necessary to enable the preparatlon of financial ststements that Bre free from material misstatement, whether due to ftaud or error. In preparing the financial siatements, the trusiees are ponSIble for assessng the Charivs ability to continue as a going COnrn, disdosing, as applicable, rnatters Telated to going concern and using the going conr basis ol accounting unless the directors either intend to liquidate the Charity or tD cease operations, or have no realistic aernative but to do so. Page 10
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 XNDEPENDENT AUDrroR'S REPORTTO THE TRusfEES OF THE FAVERSHAM MUNICIPAL CHARMES 2010 Audltors. responsibilities for the audtt of the financial statements Our objectives are to obtain reasonable aUran about whether the financial ststements as a whole are free frotn materfal misstatement, whether due to fvaud or error, and to issue an Auditor5, Report that includes our opinion. Reasonab assurance is a high level of assurance, but is not a guarantee that an audit Conducted in accordance with tSAs (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 lnfiuen the economic deasions of users taken on the basis of these financyal staternents. IrregularleS, includlng fraud, a Instances of non•compliatKe with Laws and regulakn"ons. We design procedures in line with our re5ponsibilibes, outlined above, to detett material misstatement5 in respett of Irregularities, induding fraud. The extent to which our procedures are capable of detecting irregularities, induding fraud is detailed below.. Capability of the audit in detertlng Irre9ulèrlties including fraud Based on our understanding of the Charity, we have considered those laws and regulatior that have a direLt impart on the preparation of the financial statements such as the char"eS Act 2011. We evaluated management incenbves and opportun for fraudulent manipulation of the financial staternents induding management override, and considered that the prinopal risk was related to the poskn'ng of inappropriate journal entries to Improve the result before tax for the year. We designed audt procedures to respond to the ri4k, recogFJising that the risk of not detsLting a nwterial Mstatement due to fraiid is higher than the risk of not deteth'ng one resulting from error, as fraud may invofve deliberate Conalment by, for example, forgery, misrepresentstions or through colluslon. Pr¢xeduYes perfornd by the audit team indvded: DiscuOn$ with management regarding known or suspected instances of non-complian with laws nd regulations,. Evaluakn"on of controb designed to prevent and detect irregularities; and Kwsing fvurnal entries as part of our planned audit approach. There are Inherent limtstlons in the audit prOdureS described above, and the fvrther removed non- cOrnpln(e with law5 and regulations is from the events and transactions relkrted In the financial statements, the less likely we would become aware of it. in all of our audrf5 we also addressed the rk of management ovethde of internal controls. including testing journals and evaluating whether there was eviden of bia5 by the direttors that repre*nted a risk of material misststement due to fraud. A further destription of our responsibllities for the audit of the financial ststements Is located on the Finanual Reporting Coun(il's websits at.. www.frc.org.uklauditorsregp0rlb1lltle5. This description forms Part of our auditorfs reyjrt. Magee Gamrnon Corporate Limited is eligib for apwntment as auditor of the charity by virtue of its eligibility for appointment a5 auditor of a company under section 1212 of the Companies Act 2006. Ptye 11
THE FAVERSHAM MUNICIPAL CHARMES 2010 INDEPENDENT AUDITOR'S REPORTTO THE TRusfEES OF THE FAVERSHAM MUNICIPAL CHARrrIES 2010 Use of our report This report is made solefy lo the chariWs trIee5, as a body, in accordance with Part 4 of the chareS (Account and Reports) RegulatIor 2008 and section 137 of the HoLsing and Regeneratian Act 2008. Our aud work has en undertsken so that we might stste to the charitys trustees those matters we are required to state to them in an auditorfs report and for no other ptswe. To the fullesl extent permitted by law, we do not accept or assume resrxjnsibilty to anyone other than the tharity and its trusts as a bodyi for our audit work, for this report, or for the opinions we have forma. Mr Andrew J Childs FCA (Senior Ststutory Auditor) For and on behalf of Magee Gammon Corporate Limited Chartered Attountants Statlrtory AudTtor Henwood House Henwood Ashford Kent TN24 8DH Date.. Page 12
THE FAVERSHAM MUNICIPAL CHARtfIES 2010 srATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2025 t4otes 2025 Restricted 2025 Unrestrirted 2025 Total 2024 ToLIl Turnover 412,212 412,212 379,409 Operatlng costs Dire(t costs Support costs {6721 {2251 897 {572,3271 {74,757) {572,999) 174,982) 1264,5451 (71,4671 336 012 Operatin9 (deficit)15urplus other Income Donations and legac Lnlerest re1Vab and other incorne Gains on investment disposals 89 234 872 235 769 30,000 2.023,701 2,053,701 49,789 6,888 819 39,821 4,257 46,709 5,076 62,890 133,939 246 618 17 2 067 779 2 105 486 Other expenditure Interest payab Investment mènagement eXSe5 Grants payable G0Veman costs 14 118,2431 {6,2091 (1,3341 116,0641 118,2431 (7,4031 (4.8681 117,2721 1,821,931 (16,195) 17,431) 11,572) {32,808} 232,009 (1,194) {3,534) {1,208} io (Deficit)ISurplus for the year unrealis gains/(losses) on investrnents Totsl comprehensive incomel (expendlture) for the year 30,874 1,791,057 17 1865 298 1910 589 152 933 On behaw of the trustees.. Mr D H S Slmmors, Chaim)an lon behalf of the ao) Mr M Gates, Vice Chairman (on behalf ol the CIO) Mrs C Hanagan, aerk to the Trustees Page 13
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 srATEMENT OF CHANGES IN EQUITY ENDED 31 DECEMBER 2025 Revenue Reserves De51gnated Reserves RestrTrted Funds Totsl Balance at l January 2024 Surplus l (deficit) from staternent of comprehensive Income Unrealised {k)5sesl19ains on investmellts 2,616,697 418,479 220,116 3,255,292 223,225 161,030} 155,922) 18,699) 64,709 (9,346) 232,012 (79,075) 2,778,892 168,547 353,858 {129,283) 275,479 {39,263) 3,408,229 Transfers between funds Balance at 31 December 2024 2 947 439 224 576 236 216 Balance at l January 2025 surplus l {defidt} from statement ol comprehensve income Unrealised Ilossesl / gains on investments 2,947,439 224,576 236,216 3,408,229 1,913,903 74,965 1122,8441 (725) 30,874 14,417 1,821,933 88,658 4,936,307 179,965) 101,006 109,230 281,507 129,265) 5,318,820 Transfers beeen funds Balance * 31 December 2025 4 856 342 210 237 252 242 5 318 820 Page 14
THE FAVERSHAM MUNICXPAL CHARMES 2010 srATEMENT OF FINANCIAL POSrnON AS AT YEAR ENDED 31 DECEMBER 2025 Notes 2025 2024 Fixed a55ets Tangible fixed assets Investments 16 17 2,825,547 1,454,921 2,814,026 1,377,409 4,280.466 4,191,435 Cyrrent assets Trade and other debtors Cash and cash equivalents 18 27 2,319,362 196,468 224,081 179,254 2,5J5,830 403,335 Creditors: amounts falling due wlthln one year 19 (77,6731 160,852} Net current assets 2,438,157 342,483 Total assets less current liabilities 6,718,625 4,533,918 Credltors: amounts falllng due after more than one year 20 11,399,805) 11,125,688) Total net assets 5318 820 3 408 230 Reserves Revenue reserve ignated reserves Restrlcted reserves 24 4,856,342 210,237 252,242 2,947,438 224,575 236,214 5 3J8 820 3 408 230 These financial ststements were approved by the trustees and authorised lor issue on . 1.3.Ib..Fh4 2026. On ehalf of the trustees: D H S Simmons, Chaiman lon beha ol the CIO) Mr M Gates, Vice Chairman lon behalf of the CLOI Mrs C Flana an, Clerk to the Trustees Page 15
THE FAVERSHAM MUNICIPAL CHARrriES 2010 srATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Net tash generdted from opèratlng artivities (308,658) 201,004 Cash flow from investing activlties Dividends, interest and rents from investrnents Purchase of tangible fixed assets Proceeds from sales of investments Purchase of investments 46,709 138,463) 85,903 169,682) 62,890 (507,298) 1,547,048 {1,294,094) 191454 Cash flow from financin9 artivities Repayment of borrowings 301,405 11,694) Net change In cash and cash equivalents 17,214 7,856 Cash and cash equivalents at the beginning of the year 179,254 169,664 Cash and cash equivalents at the end of the year P89916
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policie5 1.1 Ba515 of preparatlon The financial 5t2tements have been prepared to give a Irue and fairf view and have departed from the Charities (Accounts and Report5) Regulations 2008 On to the extent required lo provide z *ue and fair, view. The departure has involved followi the Charities SORP (FRS 102) published on 16 July 2014 Tather than the Accovnb"ng ènd Reporting by Charities.. Statement of Recotnmended Practi efftive from l April 2005 which has sin been withdrawn. The financial ststernents have been prepared under the hi5toricJl w5t COnvtion with ern5 reCOgned at cost or transaction value unless otherwise stated in the relevant notes to these acwunts. The financial statements have been prepared in accordance with the Ststefflent of Recornmended PraCce. Accounting and Reporbng by Charities preparing their accounts in accordan with the Finandal Repon9 Standard applicable in the UK and Republic of Ireland IFRS102), Houslng SORP 2014.. Statement of Recommended Practice for Registered S(Kial Housing Providers and cornply with the Accounting Direction for Private Re9iStereiS ProvKJets of Soaal Housing 2015 and Charities Art 2011. The Faversharn Muniopal Ch8ritse5 2010 constitutes a public benefit entity as defined by FRS 102. 1.2 Income All income is recognised once the Charity has entTUernent to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. For legacies, entr(lement 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 retrived 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 notffied of the execLrtor's intention to make a distribution. Where koacles have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income recognmon have not been met, then the legacy Is treatsd as a contingent asset and disdosed rf material. Donated Ser5 or facilitieg arÈ cOgnISed when the Charity has Control over the item, any conditlons associated with the donated item have been met, the receipt of econornic benefit from the use of the Charity of the item is probable and that economic benefft can be measured reliably. In accordan with the Charities SORP IFRS 102), the 9eneral volunteer tyme of the Friend5 is not renLed and refer to the trustees. report for more infomiath)n about their contribution. On receipt, donated professional servi ar donated facilibe5 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 tscililies of equivalent economic benefit Dn 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 or deeds of covenant Is recnied at the time of the donation. Income tax recoverable in relation to investrnent income is recognised at the time the investment incorne is re1Vable. Turnover represents rental income Inet ol void losses), other income receivable Irorn propertie5 owned by the Association and amortisation of Social Housing Grant ISHG) under the accrual method. Page L7
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policies (continued) 1.3 Expenditure Expenditure recognis& On there is a gaI or constructive obllgatSon to transfer econornic beneFIl to 8 third party, it is prolkble that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measu¥e reliably. Expenditure is dasslfied by attlty. The costs of each attlty are made up of the total dlrect costs and shared tosts, including support costs invofftd in undertaking each activty. DireLt costs attributab to a single actiwty are allocated directly to that actiwty. Shared costs which contribute to more than one actiwty and support Cost whitt) ore not attributsble to a single acbvty a apportioned between those artIv.eS 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 portlon of the asset's use. Support costs are those costs incurred directly in 5UPPOrt of expenditure on the objed5 of the Charity and include proieLts managernents orried out at Headquarters. Goverrjance costs are those incurred in connertion with administration of the Charty and compliance with constitutional and statutory requirements. Costs of generating funds are cos incurred in attracting voluntary income, and those Incurred in trading activities that raise funds. Charitable activrties and Governance costs are costs incurred to the Charity's educational operats.or, includin9 5UPPOrt co%t5 and costs relating to the governance of the Charity apportk)ned to charitable activities. Grants payable a charged in the year when the offer is made eypt in those cases where the offer is condibonal, such grants bein9 recognised as expenditure when the conditions attschlng are fUilled. Grants offered subj'ect to conditions which have not been met at the yearnd are noted as commitment, but not accyued Bs Qxpendtbj. 1.4 Tangible fixed assets and depreciation A review for impairment of a fixeil assets 15 carried wt If events or changes in orcumstances indlcate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carying value of fixed assets and their recoverable arnounts a rew9ni5ed a5 irnpairments. Impairment I0e$ are recogni5ed in the Ststement of comprehensive income. Tangible fixed a55ets are Caled at cost, net of depreciation and any provision for irnpairments. Depreaation 15 provided at rates calculated to wrfce off the cost ol fixed assets, le their egbmate residual value, over their expected useful lives on the following bases.. Freehold Propety Fixtures and fittings Roofs Bathrwms Kitche Boilers So years 25 years 50 years 25 years 25 years 20 years Pa9e L8
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Accountlng pollcles (contlnued) Freehold land is not subjett to depreciation. Houlng properties are stated at thelr hÈtortcal cost le depreciatK)n and any pr(Ivision for impairment. Costs include the cost ol acquisition, construction and improvement. Improvements are works kvhich results in an enhancement of the economic benefits of the a55et to the Charty arising frorv an increase in the net rental income over the life of the asset, such as the reduction of future rnaintenan 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 valuatlon (net of Housing Aw)ciation Grant, and other rapltsl grant51 of the freehokl housing PTopertie5 and major components on a straight-line basis over their expected useful economic lives. Major components are treated as Separable assets and depreoated over their expecied useful economic lives OT he lives of the structure to which they rekte, rfshorter. The estimated usefvl economic life for each compDnert has iEen based on the Charivs current experience of component replaMent. The Charity will continue to monf(or and reVW the usefLtI economic life of each component and rnake revisions where sustained material changes occur. Where there is evldence of impalm)ent, the fixed assets are written down to the recoverab amount and any wrfte down would be charged to the operating surplu5. 1.5 Investments Fixed asset investments are a fomi of finanaal instrument and are inittally recognised at their transaction cost and subsequently measured at fair value at the Statement of financial position date, unless fair value cannot be measured re11ably in whlch case it is measured at cost less irnpairment. Investment gain5 and 1055es, whether reali5ed or unrealised, are cornbined and shown in the heading 'Gainsl {lossesl on investments on the Ststement of comprehensive income. 1.6 Interest recelvable Interest on funds hekl on deposit Is induded when retsivable and the amount can be measured reliably by the charity,. this is normally upon notification ofthe interest paid or payable by the Bank. 1.7 Debtors Trade and other debtot5 are recognised at the settlement amount after any trade dlscount offered. Prepayments are valued at the atnount repaid net of any tra<Je discounts due. 1.8 Cash at bank and In hand Cash 3t bank ènd in hand includes cash and short term highly liquid investments wf(h a short rnaturity of three month5 or kn frorn the date of acqui5fcion or opening of the deposit or similar account. Page 19
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Accountlng pollcles (tontinued) 1.9 Uabllltles and provlsions uabl1 are retognised when there is an obligation at the Ststement of financial p0son date as a res of a past event, it is pmbable that a transfer of economic benefit will be required in settlement, and the amount of the *ttlement can be estimated reliabty. abilItieS are recognised at the arnounl that the Charity antiupates it will pay to setde the debt or the amount it has reIVed as advanced payments for the goods or serwces it tnust provide. Provisions are measured at the best estimate of the amounts reqk5ired to settle the obligation. Where the effect of the time valLJe of rnoney is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the ris specific to the liabilty. The unwinding of the discount is recognised within interest payable arKI 5irnilar charge5. l.lo FinaTh¢ial instruments The Char¢ty only has financlal assets and fiFwncial liabilities of a kind that qualify as basic finanoal instruments. Basic financial instruments are initially recognised at transaction value and subsequendy measured at their settlement value wlth the exptIOn of bank loans which are subsequently measured at arnortised cost using the effeLtive interest method. 1.11 Ptnsions The Charity operates a defined contribution nSion 5cherne and the pension charge represents the èmounts payable by tlJe Charity to the fvnd in respect of the year. 1.12 Fund accounting General funds are unrestricted fijnds which are available for use at the discrebon of the trustees in furtherance of the genernl objecknves of the Charity and wh5ch have not been designated for other purp. Designated funds comprise unrestricted fiJnds that have been set aside by the trustees for P3CUlar purposes. The aim and use of each deslgnated ftjnd i5 set out in the not to the financial statements. Restricted funds are fvnds which are to be used in accordance with 5peofic restrictions imposed by don0 of which have been raised by the Charity for particular purpow. The cost of raising and administering suth funds are charged against the specific fund. The aim arKJ use of each resthcted rund is set out in the notes to the financial ststements. Investrnent Income, gains and losses are allocated to the appropriate fund. 1.13 Crltieal attounting estimates pnd Breas of judgement Estimates and judgements are continually evaluated and are based on historifal experience and other factors, including expettations of future events that are believed to be reasonable under the arcumStsns. Critical accounting estimates and asyJMptior. The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions wlll, by definition, seldom equal the related actual results. The &tirnztes and aumptIOnS that have a significant of causing a rnaterial adjustment to the tarrying amounts of assets and liabiliti wf(hin the next year are discussed below. Page 20
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 Accounting policies (contlnued) Critical areas of judgernert: The trustees have reviewed the asset lives and resldual values of all ffrAed asset and have concluded that the asset lives an(J residual value5 are appropriate. 1.14 Soclal Houslng Grant Social Housing Grant ISHG) used to redLtce the capitsl costs of housing property. 5HG is initially renised at falr value as a I0-terM liability, spea'fically 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 wlth the accrual method applicable to social housing landlords holding housing properti at cost. 1.15 Cyclical Repairs and Maintenan The Charlty has estsblished a regular programme of Lyclical repairs and rnaintenance. Costs are charged to the Revenue actount in the year in which they are incurreil. 1.16 Extrnordln3ry Repairs Costs of Extraordinary Repairs unless repsentIng 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 rry out major repaits on Houslng prope. Page 21
THE FAVERSHAM MUNICIPAL CHARfrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 2. Income from donations and legades R¢stri(tsd funils 2025 Unrestricted funds 2025 Total funds 2025 Total funds 2024 Donations Legdties Grants 1,544 2,022,157 1,544 2,022,157 30,000 738 30,(K)O 49,051 20L701 2 053 701 rota12024 3. Turnover from social houswng lettin95 Restricted Unrestr5cted rotal Total funds fvnd5 funds funds 2025 2025 2025 2024 WeeV Maintenan contrfbutions Less.. losses frtsm vol(Js 432,578 {42,079) 432,578 {42,0791 415,826 {58,130) 390,499 390,499 357,696 ial housing grant utilised 21,713 21,713 21,713 412 212 412 212 Totr12024 Accommodation in management 2025 2024 Housing for older people in need 69 69 ge22
THE FAVERSHAM MUNICIPAL CHARrfIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 4. Investment Income Restrfcted funds 2025 Unrestrirted funds 2025 Total funds 2025 Total funds 2024 LCKJI listed investments Local investment properties Local cash 6,723 30,246 18 36,969 18 9.722 59,197 18 3,675 165 9,557 Tots12024 5. Investment management costs Totsl funds 2025 Total funds 2024 fund3 2025 funds 2025 Investment management fees 1,194 6,209 7,403 7,431 Tota12024 6. Anafysls of grnnts Grants to Grnntsto Individuals 2025 Institutlons 2025 Totsl 2025 Total 2024 Almshouse & Chapel Branch Relief in Need Branch Edijcab'on Branch The Faversham Heritage Fund & Henry Hatth Charity Recreation Branch 305 1,029 305 1,029 1,572 3,534 3.534 Tota12024 572 Page 23
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL sfATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 7. Analysis of PendIture on charltable activities Restrlcted funds 2025 Unrestrlcted funds 20Z5 Total funds 2025 Totsl funds 2024 AlrnsFK)use & Chapel Branch Relief In Need Branch Education Branch The Faversham Heritage Fund & Henry Hatch Charity Recreation BrarK 664,784 523 1,250 664,784 523 1,250 351,034 209 1,782 3,759 3,759 104 213 102 104 670 420 Tots12024 273 Pige 24
THE FAVERSHAM MUNICIPAL CHARrriES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 10. Governance costs Restricted Unrestrfcted funds funds 2025 2025 Total funds 2025 Total fund5 2024 AudTtoY's remuneratlon Legal & prOf10n81 fees 1,094 11,122 4,485 12,216 4,492 9,516 22,627 TrLStee indemnity insurance 107 457 564 665 Tots12024 During the year ended 31 December 2025, the Charity incurred the follovlng governan costs: £14,01412024-£27,361) induded within the tsb above in re5pett of the Almshouse & Chapel Branch. £861 12024-£J,439) included within the table above in respect of the Relief in Need Branch. £98812024-£J,65J) included within the table above in respect of the Education Branch. £20212024-£2,02llJ inclL>ded within the tsble above in respect of the ReeatIOn Branch. EI,208 {2024-£337J included wrthin the table above in Tespert of The Favet5ham Heritage Fund and Henry Hatch Charity. Page 27
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 11. Analysis gf expenditu by expendire type Other Depreciation 2025 Total 2025 Total 2024 2025 2025 Investment management fe 7,403 7,403 7,431 Costs of raising funds Almsho(e & Chapel Branch Relief in Need Branch Education Branch The Faversham Heritsge Fund & Henry Hatch ChaTrty RetreaOon Branth 129,691 26,942 508,151 523 1,250 664,784 s 1,250 349,524 209 1,782 3,759 104 3,759 104 213 102 Charitable activltles 129 691 513 787 670 420 351830 Expenditure on goveman 17,272 17,272 32.808 129 691 392 069 Tots12024 269 269 392 069 12. Net income l (expenditure) 2025 2024 Auditorfs remunerotion Depreriation 12,216 26,942 9,516 15,932 No truste recelved any remuneration, benefits in kinds OT TeimbuTsement of expen (2024 - £nil). The Clerk lo the Trustees recelved ernoluTnents of £56,198 (2024- £53,229). Page 28
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 13. Stsff costs 2025 2024 Wages and salaries Social security costs Pension costs 123,790 2,875 3.026 101,551 2,855 2,462 129 691 106 868 The average number of persons employed by the charity during the year was as follows: 2025 No. 2024 No. Scheme Manèger (Part timel Caretaker and grounds maintenance Ènd deaner Administrat(on No erTiyk)yee re1ved rernuneration above £60,00012024 - none). 14. Interest payable 2025 2024 On loans wholly or partly payable in > 5 years 18,243 16,195 15. Taxation Fartors afferting tax charge for the year The Housing SOatIOn is a Registered Charity and is therefore exetnpl from liability to taxation on Its income and capital gains. Factors that may affect future tax charge5 There We no factors that may affect future tsx charges. Pa9e 29
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 16. TangSble fixed assets Freehold prnperty 2025 Fixtures and fittlngs 2025 Total 2025 C05t or valuation At l January 2025 Additions Disposa15 3,261,383 410,456 38,463 3,671,839 38,463 At 31 Decernber 2025 3 261383 3 710 302 Depredatlon At l January 2025 Charoe for the year Depreuation on disp¢)sats 768,077 9.739 89,736 17,203 857,813 26,942 At 31 December 2025 106 393 Net book value At 31 December 2025 2 483 567 2 825 547 At 31 t)ember 2024 2 493 306 320 720 2814026 The atx)ve details relate to improvements and developments of the properties whlch were transferred on I January 2013 frorn Faversham une Municipal Chèrlbes and there are no records of the orfginal cost of them. They weTe funded by Housing Corporatitsn Grants totalling £1,737,009.91 antl Rèsydual Mortgage Loans of £57,523 at an annual interest rate of 14% per onnum over 30 years from l Novernber 1982, and £190,465.24 at an annual interest rate of 9.375% per annum over 60 Yea from l Ortober 1989. The balan was prowded from the Charity's resour5. Pige 30
THE FAVERSHAM MUNICIPAL CHARrfIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 17. Investments 2025 2024 SPW Global Corporate Bond Q Inv- 104,559.49 units12024- 104,559.491 SPW Global Government Bond Fund Q- 219,931.17 units12024 - 223,952.82) 5chroder Global Equity Component FurKJ- 229,384.8 units (2024 - 243,094.241 Sthroder Global Equity Income FuTrJ- 226,814.28 units12024 - 224,332.96) Schroder Income Fund- 131,749.46 units12024- 141,543.29) SPW Global (Ex UK) Equity FurKJ Q Jnc- 166,315.69 unlts {2024- 64,359.431 Ishares North American Fund - 276.61 units12024 554.41) ICVC Hlgh Income & ETverging Market- 58,533.32 unrts (2024- 58,533.32) ICVC Global InVtment Bond Fund- 127,168.53 units12024- 127,168.53} ICVC Global Sovering Bond Fund- 265,430.13 units12024- 253,476.041 Vapguard fmerging Market Index Fund- 18,19 unts12024 - 0) ShaTes ex-UK Index Fund- 3(6.57 units12023- 18,678,371 chariti Investment Fund ERF Scheme- 142.61 uniL% {2024- 242.61) 108,324 106,755 228,948 228,880 135,566 129,253 227,722 198,041 110,839 97,792 197,563 188,544 4,325 7,949 47,950 48,161 110,230 108,131 238,277 226,734 4,238 4,498 36,441 37,166 1454 921 1377 408 The cost of investrnents at 31 Decernber 2025 is as follows: 5PW Global Corpordte Bond Q Inv 107,592 107,592 SPW Global Q)verriment Bond Fund Q 227,409 231,567 Schroder Global Equity Component Fund Schroder Global Equity Income FUTr hroder Incorne Fund SPW Global (Ex UK) Equity Fund Q Inc iShares North Amerlcan Fund 118,831 199,779 89,158 155,717 3,758 125,923 197,613 98,786 166,961 6,860 Page 31
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 ICVC High Income & Emerging Market 44,038 ICVC Global Investrnent BOT Fund 100,782 ICVC Global Sovering Bond Fund 239,012 Vanguard Emerging maet Index Fund 3,921 IShar ex-UK Index Fund 4,321 Char Investment Fund ERF Scheme 11,219 44,036 100,782 228,332 11,219 1305 527 1319672 17. Investments (contlnued) 2025 2024 Market Value at l January Addition5 Dsposa Realised surplus Unreali5ed deficit 1.377,406 69,682 185,903) 5,076 88,658 1,575,500 1,294,094 (1,547,048) 133,939 179,076) 1454 921 18. frade and other debto 2025 2024 S(Kial housing rent arrears Other debtors Prepayments and accrued income 4,348 2,022,157 292,857 4,262 219,819 2 319 362 224 081 19. Credltors: amounts falling due within one year 2025 2024 Other loans Accruals and deferred income Deferred grant 7,121 48,480 21,713 1,546 37,593 21,713 Page 32
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 20. Creditors: amounts falling due after more than one year 2025 2024 Deferred grant Other loans 933,629 466,176 955,342 170,346 1 399 805 1125 688 21. Deferred Intom¢ 2025 2024 Balance brought forward Released In year Deferred during the year 9,630 (9,6301 20,529 4,653 (4,6531 9.630 Balan carried forward 22. Deferred grants 2025 2024 Balan brought lorwaTd Released in year 977,055 {21,7131 998,768 121,7131 Balance carried forward 955 342 977 055 The deferred grants represents a capital gront reiVed in 1980-84, 1988-91, 2003 and 2004-05 for the rTrodernisation of the Almshou, building of new Almshouses, replaang gas boilers and witKJows. The grant is being released over the estimated usefijl life of the property in association with FRSIO2. 23. Loans 2025 2024 Due within l Year Due within 1-2 Years Due within 2-5 YeaTS Due in > 5 Years 7,121 7,477 22,531 436,168 1,546 1,550 4,750 164,049 Balance camed forward 473,297 171892 Loans are secured over the assets concemed. Pige 33
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 24. Ststement of funds ststÈment ol funds- current year Balance ati January 2025 Balance at31 December 2025 Income Expenditure Transfer Inlout Galnsl (Losses) Deslgnated fund5 Cyclical maintenance fvnd Emergency Tepair fund Housing redeveloprnent fund Roof repair fvnd Roof phase I fund 104,283 {98,394) 120,341 126,230 82,153 {24,537) 17251 56,891 2,028 87 2,115 25,000 25,000 122 931 725 210 237 General funds General funds Education branch Recreation branch Reltef in need branch J N Coulter 2,924,736 441,790 (560,048) (56,386) 53,379 2,803,471 8,890 5,629 13,213) 111,2341 12.450 12,521 2,231 1,164 1505) (2,3421 2,541 3,089 11,582 4,907 2,022,157 12,234) (JO,0031 10,853 15,105 2,022,157 5 066 579 3 172 013 688 931 funds Organ maintenan fund Faversharn Heritage fund nd HH Char¥ Roof repair 3,113 1672) 2,441 233,103 6,888 735 30,000 (30,0001 36 888 15 236 {6,162} 15,236 249,801 236 216 252 242 Total of fund5 3 408 229 2 512 622 5318 820 Page Y
THE FAVERSHAM MUNICIPAL CHARrriES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 24. Statement of funds {contlnued) ststement of fvnds - Prlor Year Balance ati January 2024 Balance at31 December 2024 Income Expenditure Transfers Inlout Galnsl (Losses) DÈslgnated funds Cyclical maintsnance hjnd Ernergency repair fvnd Housing redevelopment nd Roof repair fund Roof phase I fund 72,036 {36,3001 68,547 104,283 50,742 129,8421 59,830 1,423 82,153 1,913 25,000 17 2,028 25,000 418 479 129 2B3 418 479 General funds General funds Education branch Recreation branch Relief In need branch 2,569,506 6,345 1,498 428,304 5,659 {315.5101 (4,2401 (6031 181,128 14,6721 11,017) 34,308 5,798 1,181 2,924,736 8,890 2,230 12,348 4,932 (3,8621 16,8921 5,055 11,582 3 035 176 390 356 3 172 013 Restricted funds Organ maintenance ftjnd The Faversham Heritsge fund and Henry H3lch Charity Roof repair 3,550 {4371 3,113 216,566 6,923 (3,219) 5,737 7,097 3,103 220 116 3 255 292 236 216 3 408 229 394 013 Pa9e 35
THE FAVERSHAM MUNICIPAL CHARTfIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 24. Statement of fund5 (continu) Summary of fund5 - Current Year Balance ati January 2025 Balance at31 December 2025 Income Expendlture Trnn5fers Inlout Gainsl (L¢)sses) Designated funds General funds 224,575 2,947,438 87 2,475,647 1122,931) 1566,000) 109,230 (79,965) {725} 79,223 210,237 4,856,342 3 172 013 236,216 2 475 734 36,888 688 931 {6,8341 RtrIrted funds {29,265) 15,236 252,242 3 408 229 2 512 622 695 765 5 318 820 Summary of funds- Prior Year Balance Balance at31 ati Income Expenditure Trnnsfers Garnsl (Losses) January 2024 Injout December 2024 De&gnated funds General funds 418,480 2,616,697 99 166,1421 1324,214) (129,283) 168,547 1,423 46,342 224,575 2,947,438 440,066 3 035 176 465 165 390 356 3 172 013 Restricted funds 210,116 51,923 (3,656) 139,264) 7.097 236,216 3 255,293 492 088 3 408 229 Page 36
THE FAVERSHAM MUNICIPAL CHARrrIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 25. Analysi5 of net assets between funds Analysls of net assets between funds - current year Unrestricted funds 2025 Total funds 2025 fvnd5 2025 Tangible fixed assets Fixed asset investrnents Current assets Creditors due within one year Creditors due within more than one year 2,625,547 1,221,317 2,497,192 177,6741 {1,399,8051 2,825,547 1,454,921 2,515,830 177,6741 11,399,805) 233,604 18,638 252 42 5 066 577 5 318 819 Anatysis of net assets between funts- prior year Restricted funds 2024 Unrestricted fitnds 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due within more than one year 2,814,026 1,161,227 383,300 (60,8521 11.125,688) 2,814,026 1,377,408 403,335 {60,8521 {1,125,6881 216,181 20,035 236216 3 172 013 3 408 229 Page 37
THE FAVERSHAM MUNICIPAL CHARMES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 26. Reconciliation in net movement In fund to net cash flow from operatlng actSvltles 2025 2024 Net incomel{expenditure) for the year Adjustments for: Depredation charges {Gainsl on investments Dmdends, interest and rents from investments Loss on the sale of fixed assets (Increase) / decrease In debtors {Deueasel l increase in creditoT5 1,910,589 152,935 26,942 (93,734) (46,709) 16,609 (54,8631 162.8901 (2,095,281) (10,465) 166,078 116,1891 Net cash (used in} I by operadng attiviknes 308 658 Analysi5 of net debt Ati January 2025 At31 December 2025 Cash flows Cash at bank and in hand Debt dLFe èfter l year Debt due within l year 179,254 {170,346} 11,546} 17,214 1295,830) 15,575) 196,468 (466,1761 (7,121) 7,362 (284,191) {276.829) 27. Analysis of cash and cash equivalents 2025 2024 Cash in hand 196,468 179,254 28. Grant commitments At the 31 December 2025 the Charity had commitments as follows.. 2025 2024 Within one year Between or)e arsd two years Page 36
THE FAVERSHAM MUNICIPAL CHARTfIES 2010 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2025 29. Pension commitments The Charity operates a defined contribution pension scheme. The assets of the scheme are held separatety froffl those of the Charity in an independently adrninistered fund. The pension cost charge represents contributions payable by the Charty to the fund and amounted to £3,026 {2024 - £2,462). Contribution5 totslling £nil {2024 - £nill were payabk to the fvnd at the Statement of financial position date. 30. Relatsd party transactions Cllr Jackson is y rnember of Swale Borough Counal. Cllr C Marbn, air T Marn and Cllr Rowlands are members of Faversharn Town Council. During the year lease payments We received totalling £112024 £1) from Swale BDrough Council for a recreation park held by the Chanty. This is in respect of a long lease entered in 2010. The Counallor5 cannot Use their Position to their advantsge. No monies were outstanding at the year end. 31. Leases arrangements At the 31 December 2025 the Charty had future incoming resources from nononcellable lease agreements as follows.. 2025 2024 thln one year Betsveen one and tr40 years Between two and five years More than five years 31 32 36 3? 32. Capital commitmerts At the 31 December 2025 the Charty had commltments as follows.. 2025 2024 Wrthin one year 249,168 ii,iii 249,168 ii,iii Page 39