Regi5¢eTed nMber. 7860104 LENCH'S TRLTST (Limited by Guarantee) Financial Ststements For year ended 31 December 2022
LENCH'S TRUST DEX Pe Trll5t Information StrY4tegT£ Report )ard Report Statement OfCoPreheSkve kn¢0E 14 Statement of Finallc Position 15 St•t¢ment of Ch%nges in Re8ervf* 16 Stste]llent of Cash FloTrvi 17-18 Trlotes to the Flnan¢tsl State¢llts 19
LENCH'S TRUST TRUST INFORMATION TRUSTEIS Mr Abdul Maiik (Chairrnall) Mr Rmtsxon {Appoint¢d 19th May 2022) (Deputy Chair) Ms Ra¢hel Chiu Mr T Storrow Mr T Cuthb¢rt50n Ms S Davis Ms R Evan5 Mr A O Sholllad¢ Ms A White (Appointcd 19 May 2022) Mrs Rachel Mand¢T (Appointed 16th March 2023) Mr A Gu¢st (Ketitcd 19th May 2022) Mr R Saoeant (Retired 19° May 2022) Mg B Ingram (Rrtircd IPNovemb¢r2022) Mr S Ho&sain O)eceased 19th April 2023) CHIEF EXECITriv Jcw.LA]c Priez REGISTERED OFFtc William Inch Court 80 Ridgae Road Quinton Bimiinghl B32 2AQ REGULATOR OF SOCIAL HOUSLYC NO. A2074 REGISTERED C&4RITY NO. 1145847 COMPAfiiES HOUSE REGISTERED NO. 7860164 AUDITOR Mazgxs LLP 2 ChaTtLberlain Squar¢ Bimiingba B3 3AX Lloyds PIC 114-116 Co]rnore Row B3 3BD INVKSTMENT ADJllSORS Bvclyn Partners 103 Colmore Row Birmingham B3 3AG
LEIYCH'S TRusr SFRATECIC REpoRr TRUSTEES Leneh's Trnst is all AImshou5¢ Charity regulated by a of the Charity ComMilOn¢r5, ¢hwity registrdtion ]Lumber 1145847. It is also a R¢gist¢red Provider of Social HouSig atLd Care hch roeaDs it 15 subjt£t to monitoring by the Regulator of &Kial Housitig (KSH) as well a5 the Care Quality Cojuniyion (CQC). The Trust arc also yegistered under the Compani&8 Aet 2006, Itmit¢d by guardrtrt. It was founded io l525 by willia L£nch, a tauner, for th¢ E¢D¢fir of tbe Citizens of BimiinglLallL. For some 31K) years, the work of the TrusL divided the masntenance of stftets alld bridge5 and the care of the elderly and poor. With the incory>oration of Birrningkam in 1838 the Truske6 1KGe 501ely proderS of A]mshous¢s. Our policy is to provide care, according to our schcmc, forpcople who resident in the City, OV 55 years of age and necessitous. The scheme specifies ttvelve Trustees at)d theiT duties are to provide &qre for cwr rtsidents to meet their needs and to give consideration to otlLer piblI1tteS of care as finances and facilities be¢om¢ Availablc. The financial po]Écy of the TnteeS is to nLaititaiti and improNt the value of their endowment for the use of future generatiOD5 alld to fillther fncIal resources availabl¢ for th¢ progK55iv¢ expansion of the TDtsVs caring activitics. The manageraent of the is la by a Chief Executive and & small team of oifict staff, with day to day tare and Almshous¢ staffing carria out by our team ol scheme maDagers. The Trustees have a gr{p of befrienders for eacb Almshouse who get to know our residents illdividually and play a major part with the seheme managerg in offcTing ¢ompallionship and scekKng outtheir Deeds. T cawdcity and (Kcupalley on 31 Decembcr 2022 was:_ Units of SedtIO Nwnber of r¢sldents Lench's Close TanTher's Close William Lench Court 67 26 107 95 183 200 All the properti£s have llnits which can a¢eommodate couple4 aud this is refrct¢d ill the numb of residents shown. RISK f+lALYAGEflENr The Thstees has'e a&%essed the major risks to which thv Charity is exposed. ill particular those r¢lat¢d to the op¢talions and fiDances of tbe Charity and are satisfied that there are SY¢)5 place to tllitigate exposure to n)ajor risks. The Trnstees have approved a 5-year capital proEramtrLe. which includes the deVelopmt our propeity in Higlyte, whiGh 15 currelltly being used by St Basil's. This development will Jd behveen 20-22 properties to the Trusl's housing sttKK none of which will be shared ownership. LEP4CH'S TRLST- CHAIRMLN?S REPORT As my tetLUTe as chairan of Lench's Trn5t CO£5 to aD eod in 2023, 1 arn pleased to takc stock and sharc the significallt progress we baNr wbi¢%eAI in the p&st yeaT. Firslly, I would lik¢ to eAlcnd my ILeartfelt appreciation to the reliring Tnts& Tony GuesL Ri¢h8rd SaryeanL and BevErly I[a. I grateful for the support and guidan¢e Ébey sbared & I settled illto role. Toiiy, our longest- s¢rYing Trustee who wa5 elected in 27, b&s be a toJJstsni 80ur¢e of support and I am truly gAt6ful for his contributions to Leach's Trust oyer the ytrat5. Richard has also been a stalwart on the Boar alld I will always be appre¢i8tive of bi$ willingness to share bis expertise. Bevuly brought ¢xtensive experiii)c¢ from her time with the NHS which helped guide our care tefim. Thank you all for your service aud commitment to LLnch's Trnst. We welcomed three new raembers to the l£nch's Tnjst teatn. Alison Wbite and RÈchard Moxon join us &s Trnstees and Michell¢ Hadley as our new Housing Managtt. Ali50ll has been a valuable auditor for Len¢h's Trusr during her time at May2rs and brings a wealth of knOledge experienct to team. Richard previously managed our illvestment properties whiist working at Petmycuick Collins and is an expen Èn the field. Mi¢helle comes with a so]id
LENCH'S TRiJST STrATEGIC REPORT carccr in hwsing attd will be att &wtto (Nttteam as our n¢w Housing Manager. We aff excited to welcome them all to the t£nch's Tnth farllily. Sadly> We ItLOUrn tbc passing of Marioll OThlar4 our Scbeme Manag¢r at Tantter's aose for over 25 yeaTS, after a long iLiuE5s. She is dearly missed by au at the Trum. Lynn Rthnd, who had been covering for hlarion during her illncs4 is now eonfirroed as the llcw S¢h¢me Manager. In the latter part of 2022. we replaced a]1 internal fire d(Krs at tznch's Close alld Tanll&s Close alld brought them up to date with the latest fire JrguknioDS. The work h&s becn dotte in partDership with )HD, one of lrnch's Tnt'S prderrvj contractor4 alld totsl ¢ortg c4me in at £558k We are also proud to aallounce that in partnenbip with a rssident at t£ttcb's Close, we have rrtonfigured a flat tr> tnake it fully accessible for %he¢l¢hair Use Following this Mecesthl conversio we hav¢ adopted a plan to undertake this woTkwl]cll Yoid5 aris4 llp to two peryear within the budget. Moreoycr. at thelth¢rpart of 2021 w¢ commissioned anew ¢ODufLunication system at William tznch Court, niost of the work Vé'as cOp1¢dbV the end of 2022, how¢Trer it will be io u5¢ by out sIden carly 2023, and wc plall to ill5tall it IBter in 2023 atLxn¢h's clo alld Tannevs aos¢. tn September 2022, the Boardof TTSlee$ and Seniormattagonent T£8 held a successful iway day, dring which we dis¢uss¢d succession planning atld how we can c¢)ntinue t> li>e th¢ Tn]st's values and ¢thos. We plan to initiate successioft pLanning for the Board of Trnstee5 &5 a numb0[ ourlong-serving Trustees ivill be rEtiring oyer tl)e ncxt f¢w years. We were deliglLted to appoint our uew 0. DomiDiC Br&lley who ill take oyer from Jean-Luc Priez, after all incredible 17 years at th£ Trust. Dominic will bew hss role CEO in Jw)e. Looking I am confiden¢ th&t t£llcb's Tru# will ¢QDtillue to thTiVC alld provide vital sUPPOrt for our residents. I have no doubt that the Tntst will b¢ in excellent hallds fvith our newly eppointed CEO and the talented iThdividuais who make up our staff and Board. I w0d like to exte1 my gtztitudc to yoll all for going the &Ktra mile for our resident5. I am excited to see the ¢ontiDue to grow and evolve iti the y¢ars to come, building on (yjr n)ission to help our residents live rneaDingful livcs in yibrdnt, attd safe Coll)unities. FID8nce Report 202Z The operational suyplus from lettings drfreased to £473,181 from £584,979 due to increased costs, prirnarily aplann itLcre&se in repairs alld maintrnanee. Net rental inr0C from investOLent prop¢rtics incrra*d to £196,665 from £73,633 ill 2021. The illcome from the ground rent on Lallcaster Circus has been Teceis'ed for the ftjll y&9r (increasing by £33k), aLong with the rental income from Gallall Parking, on Ve5ey Street improving by £20k ye•J ¢)n year. These income streams along with the abortive fECS during 2021, bave meani there b&5 been a considrdble diffm¢£ in the income fmm 2021 to 2022. Athinistrative costs have increased fn)m £387249 in 2021 to £426.778 du¢ to increase in sttaff [bIll head office, tIOUgh 2022, along the cost-of-living vouchers we gave to employee5 Ortob¢r to December 2022. Below th¢ operatillg surplus, finance income h&s decre to £104,840 frollL £116,561 in 2021. this has beerl du¢ to haTring a lump iti a 2-year fix¢d account for part of 2(1?I, therefore r¢ceiving higher int¢rest tban the ¥count the sums have been moved to for 2022. Throughout the first 8 months of 2021 we saw the interG8t rates rige from Q.IOD/o to 0.250/•, howcver, by the end of 2022 the inicrcst rates have significantly in¢r¢ased to 1.75 /4 rneaning the decre&se in finance incotlle ha5 bern limited. There has also bceD a decTe&8t in surplus on sal¢ of quotsj inYe8tmenL8 fro £225,175 10 £81218, mainly due io th¢ market value Changts reg&Tding investments. Total rerveS illcreas¢d marginally from £ZT.85D] to £27.99n4 due to ihe cha)ge itt fair lue of investments. lllvestJDent Properties In August 202? we gave notice to St Basil's that wt intend io tske back Cots}'bere Garde5 to re-develop it foi. our beneficiaTie5. li'e are grateful to Si Basil's for accomOdatltsE many young bom¢less people at tlLe sch¢tne since early 2006 anil providing Critical support. We are curreDÉly wthing with Charle5 Cox, architect, and Adrian Roderick, ch2rteA surveyor at Pentty¢ui¢k ColliD4 to refud)i$h the pnperty to high stsndatds, with th¢ aim Of opening it for our b¢neficiaries inlate 2024.
LENCH'S TRLST STRATEGIC REpoKr We are having ongoing discll&4ions regarding the sale of our investm+Xt propaty at Lan¢aster Gate ith various paT¢iis and we hopeful for a fNitful outcotne in the comingyear& Wellbeing of residellt8 We ar¢ proud lo ¢oAlinu¢ to keep thc wrll-bcitig of our r65ideDts front of rni1. with activitie5 talon8 placc across all our schemes to ensure the environment remains livdy. We are making go(Kl pro8rcss OD our ambitious ¢apitsi deve]opment project &grniarked for 2022-2025 aad as mcntioncd, we'vc made sllbsrantial progress on ihe instJlatio]] of ncw rau by5tc]ns thc tcplamcnt Df the intcrnal fire doors at all our schune6. Our H¢ritag¢ PraratiOnS for our 5(M)th aoniversary in 2025 titinUe to go sjnootbly. This year Dur Foutyd¢r'5 D74y Trd Party took plxe OD the 3(hh of Marcb (markillg when William Lench signed th¢ deed of TrLtst on the Ilth of March). It wa8 8Tcat to cdEbrate the day again with our rG8idents after sA)me abscncc du¢ to Covid-19. VALUE FORMONEY(VFLID & BEwCHMARG Introduction Lench'3 Tnut 13 committed to the principl¢ and delivery of VFM &% defined by the RSEI wbich rtouires the Tnt to "ariicuiate and deliver a ¢ompr&ensive and stsegic opproach to achieving VFM in tneeting its organisational obj¢ctiY¢s" The Board of Lench's Thut h&8 overnll resN)Dsibility for ditection and governance. AChIeig Vfm Achievillg is fulldamental to th¢ attainment of L¢n¢h's Tnjst's kry strategic goal to"develop vibrant, caring and safe communities for the benefit of the community seryed by th¢ Tnjsi" and to athievt this, the Trust has adopted several objcctiies which are furthv detailed and developed in the Annual PlaDS over the iife cyele of its Ten-year Strategy (2015-2025). The Board and Executivt Tcalll are working t() embed VFM Priociples within tbe organi&*ion at all levels through aclivc engagement with staff, rc8idenL% attd kry stakeholdaE. Benchmarklng Critical 10 the 8uc¢e&s in achieving VFM is bencbllthg the Th]'S pErfornwice other housing pTh)vider5. To this end, Lench's Trust joined a local bellcbmarking cliib under th¢ auspices of Hous¢Mark and uses HouseMark'8 bcnchtnathg serricc to compare I¥ the Trus¢ perfonns with o¢ber housing provsdas of similar size. In general, the outcornes from bencbmarkmg higbligtht areas of stre]h and weakne$& indicate whether the right balance b&wtEn c05t and qULty. been obtaine(L and provide a 1n¢ of r¢fer¢n for n¢¢ary busin improvements. Lencli'$ Trust is eommitted to giving the benefJ¢iari&% of the Chlty the best service that it can with the Iesources available. and therefor¢ is artively engaged the benchmarknn. club to a55e55 its pBrfonnance atLd highlight areas forchange and inLproveme4rt. Quality Performance IM¢h's Tryst is cotnrllitted to continued oMg.g engagement witbtbe beneficiaries of the Clwity to better understand the natur¢ of any di&tisfaCtIon feed thi5 back to holl8 statr and maintenance contractors to improv¢ VIce delivery to residents and their hes. Meallingfitl engagement with wstomers and Tepairs ¢ontra¢tors helps to reduce cost4 improve efficiency {by reducing waste) and rdiS¢ cffe¢iiv¢n&ss (by doing the right things). Additionally, Len¢h's Trust reiseS the value of iticreased ellgagetneDt with residents to fostet better relations, iDirniSC misunderslaDding& addre55 areas of Conce revise methtMLs of working alld servicE delikeiy - this is achieved througb valiS means of eng2gernent wch as Ke5id¢nts Committees on each s¢hem¢ and a Trnst-wide Scrutinj. Group.
LENCH?S TRUST STRATECIC REPORT Value for Money Metri¢s Relnvestment •/tl 2D21 2022 Sector M¢dian' This n3etric looks at LTS investraellt ill existing properti&8. This ts c&lculat as a p¢rcelltR8e of the value of totsl houssnspmperti¢s. The reinv&8trnellt /0 for LT is * 6.50/ts for 2022. this is above tbc sector rnediall of 2.8%. We have been able to rea¢h this ts/. duc to our capital prOe that started within 2022, replacing fire doors tbroughollt two of our Schemes, along with replacing boilers in each apartment YL another of ow Schemes. 2023 is set to stay at a sirnilaT rate th our capital improyement progrdtlC tlloving our Schcmffj to introduce a new warden Gail system, whith wtll llltegrate th¢ Sche¢5. New iuppty ddivered (5oclal bou8ing) x8 * Y• of tothl stock IV• 6.5QA 2021 2022 Sector Mediall Thi5 s6L8 out the number of ncw social housing UDits that have becn quitrd or developed in the Ye as a proportion of iotaj u)]1. LT do not dcvelop rton- social units. LT have not developed a)y new units witbin 2022. however. there are plans for an extr& 20-22 aPartentS to be part of another %hem¢, which will start being built at tbe end of 2023. withvisi¢)Th of COpIcI1ng late 20241 early 2025. Geillg /• 2021 2022 Sector Media ooA This ratio 5Ets out the proportion ofborrowing compared with &ts. A high gearing O/ts could indicate that we have takffl on t(x) much iy)rrowiDg however low gearing could ldicate that w¢ have capaciry to botrow. Our gearing at 20.3Q/o, is higher than the se£tor ti]lan of 1653D/•, howevu, our batiking ¢ov•t8 request under 40Q/o, therefore w¢ are well within our limtls. Headlkne soclal housing tost ptr unlt 24.OWA 20.3Q/o 16.53Yo 2021 2022 Sector Mediall The unit cost metric &sse55e5 the headline social Iu51[v C05t per unit as d¢fined by the regulator ofsocial housiDg £4J38 £4,667 £4,774 Headline socia] ho8]g c05t per unit inerE4sed by £329 p.a compared witb 2021. The h&8 beeD art increase in all costs included within ttLe headline costs, in¢ldIng man¢ent and repairs & maintenance, bringing us more in linc with the receDt Mlall s¢¢tor. There been a lot of WO done over the last 12 mthiths to ake swc our heating Systems are working efficiently and etTectiYdy to Ilelp our residents with tbe cost of living, whidi ha&'e increased these eDsts. OpertIng Margln O/• Social Housing 2021 2022 SectDr This Q/0 is att indi¢ator of tyerating tffiGica¢y and busin health as it measuns tILe aoUllt of surplus generated from turnover on our day-ttH5ay adivities. 32° 2V 6.99Yo Our 50cial housing operatttig margitt has drea fro]D 32•A in 2021 to 2V/(+ in 2022 Although turnover hom Weekly MainteDan¢e Charges have illcre fro 2021 to 2022, we have seen an illcre i sts across the board. as well as baving rqYait5 & mwnt¢nane4 like wc have touched oll aboY4 we have al80 had price incfeaw frorn our 1]11¢& *Sectt>r Mediall tsken from tbe Wesi Midlaods Smauer Hou5iDg benchmarking group figures for 2021122.
LENCH'STRUST STRATEGIC REPORT FINANCIALREPORT2022 FJXKD ASSETS The net Ix>ok value of housing propoties is £15.7m. CURRKNf ASSETS Current assets are at £5.0 compris&J main]y of investmellt deposits of £4.7Jn, which will be used in our Capital Comtrlitments programme along with developments fortheTntsL CREDrroRS CTeditors due within one year are £1.4m. this includgs housing property l¢)ans of £501k. FUNDS The Trust's total funds at 31 Dccember 21r22 were £28m. RESERTrTS POLICY The Trustees bave reviewed the Tnjst's need to retsiti free available raser¥e5. defined &8 totsl assets less current liabilitl&S Ill the Income Fund before deducting Short terni housiDg loalls alld less t8llgible ass&5 comprising both housing prop¢rties and other f¢d &sset$. The Trn¢tees consider it prudent to r¢tain funds equivalcrlt to 6 months annuat op¢raiittg ¢Kpenditurt for the proi'ision of the working capita] ne¢ded to run the efficiently and for unexpected eoThtingencies. 11Jis alnounts to approximately £l.Im. At Ihe yedar-end free reseNes are £828k. STATEMEf4T OF COMPREHENSIVE INCOME The sutplus for the year w&8 £144K lch is a considerable difference to 2021. where we had a surplus of £440k. We have seen a SIlfiCallt change it) tbe fair value of iDi'¢Stn]ellts during 2022, which has led to this ¢hang¢. INVESTMENT POLICY The Trustees, illvestment policy is to look for long ternl holdings with(wJt undue risk and for an income which will grow iThreal terrlls. Ir4FLATION AfT) COST.OF.LIVJNG CIUSKS The co-of-living crisis continue5 to have a SilfiCt i]npact on our reSIdets and the work we are able to do as a housing provider. The ThTSt are continu811y Teyiewing ntracts and budgets to make sure our ridentS are well eared for during ihis uoslable time. The in¢reas¢ in etsew pri bai'¢ 00¢ affected ihe majoTity of our residents, due to the Thist being able to fix prices for 3 years from November 2021 alld we tmve madc gjre all our residents have acc& to gts, should tbey need it. GOLNC COE4CEIi Under the goverllance require¢t4 the Trustees CODfullL that after lllaking enquirie5 thEy havc a reasonabl eAp¢ctstion that th¢ Trust has adequate to continue in operationa] existence for the fOrceble future. Ac¢(Trrdingly th¢y contimie to adopt the gOIg concern blS in prepariDg the accounts. Wl)i1st the Infiatiollary issues alld cost of IiviDg crisi5 ha5 brougbt additio]1 challeng&s, the board have prcpared forecasts for the cumt ),r which show that the Twst will meet IL$ Bank O)venants and the ctL8h flow remains strong.
LENCH'S TRusr STRATEGIC REPORT On this b&sis, the Board b&s a TeasonBble exptation that L¢nch's Trust h&8 adequat¢ resources to contiDue in operatiojd existfJJce forthe foreseeable future, being a p1£1 of twe]ve snonths aftff the dat¢ on which the report and . fiJ]ancial statemenis ar¢ si8lled. For this it eontinues to adopt the going concern basis in the fi]WlCi741 statemellts. Approved by the Trustees on 18 May 2023 and sied tsL theirbehaif by A Majik Chaimian
LENCH>S TRLST STRATEGIC REPORT 1PEB)IAL WJNANCIAL COLYtROL Th¢ Tru5tCC5 havc QVCLHII EEspollsibiiity for the Th]st's system of in¢ernal finwiaj control, the ¢ffpxtiv¢ness of which has been reviewed and rew1ed on to the Tne¢S by the Finance Committee. The principal elements of the system, which is designed ¢0 T¢wgnise the specific chatacteristics atLd objectives of tbe Trust alld the risks to which it is exp)sed. ilude.. a clearly defined stNcthre wbich ddegat£s authority, Tfwnsibility and accountability. including r4>t)ll5ibility for internal finanoial control io managemen¢ a well<8tab]ith¢d bvdgeting and reporting functiott, with dgets and iesults reviewed at a senior leyel within the Trnst to provide a tirnely and regular tnonitorillg of finan¢ial perforn)an¢4 an illvestsell1 evaluation prLW to eDwe Tn. apprDval for all major capital expenditse ¢ornmitment5,' a regular reviewproc¢dur¢ CWTi¢d by theTrusiof its risk exposure andof the SYemS of intemal fillanGia] control ITL place to mitigate those risk4 with aDuual rq)orts of firLdiDgs to tbe Trustecs. Tnternal financial controL by its naturq prn)vid&8 only reasonable and not abK>lute assurance against material isatemcnt or Iths. COMPLL4NCE IvrrH THK REGULATOR'S GOVEILNANCE Afl> FINANCTAL VLIBILITY STANDARD The TN5tees confinn that the Trust complies with theRequirements of theTeis•l GOvernaTr and FInacial VIability Standard appli¢able for the year. CODE OF GOVERNANCE IILe Trust uses the regulator of socia] housing c¢ of governance. Whi¢h means we must follow three economiG standards. which consists of Goiernallce attdFinancia] ViabiLityi Value forvoney and Rent. The Thist have complied wÈth all r¢l¢vant provisions set (ut in the UK Cortmle Govemance Code throughout the awTrunting periiMI. IUSK mANAGLENr Refcrto str4tegir report page 2. FUT[ DEVELOPP¥lENTS Refer to strategic rcport pages 2 atld 3. TRusfEES The TnLees are &8 set out on pag¢ l. TRusfEES RESPONSIBtLrrtES Social housing legislation Tequires the Trust¢es to pr¢paT¢ finallciai stalem¢nts for each financial year v/hi¢h give a tTue and fdir tW of the state of the Trust &s at the C] of the finaneiaI yedr and of thc income and expendilur¢ of the Trust for the ycar Cnded ijll tIt dat¢. In preparing thi fjnallcial statement& suitable accounting policies have been used, framed to the best of the Trus¢tts' knoivledge and belief. by refErencc lo reasonable aud prudcnt judgemtTht5 and estimates, and applied consistently. App]icable accounting standar- have b¢en followed. The Trustees are also rquired to itkdicate where the finall¢iaJ ateme[ are wepared otber than oll the b&%is thai the TnL 18 a going concern. The Trt]&tees are rcsponsible for Cnsutillg Itt arrnigements are ttEade keeping pFer book5 Df account with to the Tnt'S ttallsactions and its ats and liabiliti&% and for maintaining a satisfactory systein of control over the TrusV8 book5 of accouut aDd trat10$. The Tnwew $0 responsible for ensuring that arrangemellts are made to saf¢gllard the 8S5ets of the Trust and hence for taking reasonable • for the prevention and dettion of fraud aud oth¢r irregulariti.
LENCH'S TRUST STiL4TEGIC REPORT TRUSTEES. LL4BILITY INDEMNITY I Thtts5 of the charity benefit from a .Tn1c liability l]Jsur8nce' policy through our Knsurers wbich. provid £250.OQO of cove¥. DISCLOSiUIE 05 INFOILMATIOLY TO THE ALI)ITOR There is no relevant audit infortnaLon outstallding of which the audilors unaware aud wc havc taken all the steps we oughi to have taken to make oursdvcs aware of rel1 audit infonllatioll and to £stablish that the wditors arc aware of ihat inforrnatii)]L. Approved by the Trustees on I8 May 2023 and sig11 on theirbehalf by A Malik Chairnian
LLNCH'S TREST INDEPKNDErrf AUDITORS REPORT For the ypar ettd¢d 31 D¢¢ember 2022 Oplnlon We have alldited the fJtun¢ial stalements of LeThch's Trust {the 'company') for the year ended 31 Deeejnber 2022 which comprise St&tem¢nt of Compiebettsive Income. StAtemertt of Financi Position, Statement of Changes in Reserves, Statement of Cashfiows and notes to the financial stswnent4 including a summary of significant w¢ounting tM)li¢i¢s. Thc filwicial reporting frallL¢work ha5 beell applied in their pttparation is applicable law and United Kingdom Accounting Standards, FRS 102 "The Finattcial REPOrtiug Standard applicable in the UK and R¢pllbli¢ of Tland, (United Klllgth) Generally Accepted AcLYbUtLtingPractice). In our opinion, the fmancial ststements.. give a true and fair view of the slats of the company's affairs as at 31 De¢¢mttt 2022 and of its surplu5 for the year thell et)ded' hBVe been properly prepared in accordaDC£ With United Kingdo]D GeDerdlly Accqited Ae¢ounting Practice. and have been preparfAI in accordance with the requirements of the Companies Act 2006, the Housittg and Regeneration 2008 andthe A0W)tsng Dire¢tioll for Priyate Registered Providers of Soci8J Housing 2022. B#sig for opinio We conducted our al11 in accordance with lntemal1on Stsndams on Auditing (UK) USAS UJK}) 8nd applIble law. Our responsibilities ullder ibose stalldsrds arE furth£r described in thc -Auditor's sm$1b1l1II¢9 for th¢ audit of the fillallcial st&t¢ments" 5¢dion of our TrporL We indwendent of the Gompany in a¢¢ordance with the ethical r¢quirements 1hat are relevant to our audit of the financial 5tatsments in the UK. including the FRC'S Ethical Stsndard. and we hive fulfllltd our other ethic41 rcswnsibilitie5 in accordance wttb these requirements. We believe that the audit evidence we have obtained is sufficiet ad appropriate to providc a basis for our opillion. Condusioll5 rel2ting to going concern tn auditing the fllJan¢ial stal¢ments, we have concludaj that the Board8. Use of the 8oiDg c4)neern bLsi5 of arwuntins i the preparation of the finan¢ial statements is 8ppropriat¢. Based on the work we have p¢rformg1 we have not identified any material un¢ertainties relating to ¢v¢nts or conditions ttLat, individually or collectively. Tllay cast 5iguifirant doubt the company'5 ability to ¢DDtiDue as a going concern for & riod of ai I1 twelve months from wben the financial stateLnents authorised for issue. (h]r resTK)n55bilit] and the snSIbilItieS of the Board with respect to going concem are described in the relevant sections of this report. oth¢r informa¢io The other ioforniati¢)n mpriseS th¢ inf0Mon Includ ill the Board R¢p)rL otherthall the finallciai statements and our auditor's report ihereon. The Board are restKJnsible for the other infomiation ¢ontain¢d wrythin the annuai r¢port. Our opinion on the financial seMentS d(w not cover the other inforniation and, ¢xcept to the extent oth¢rwis¢ ¢xpli¢itly sthted in our repDTL w¢ do Trot expr655 ally fi)rn] of as5UTaJJC¢ coocIu5ion th¢reon. Our r¢sponsibility is to read th¢ other inforniation an¢L iD doing by). consider whether the other infomiation is materially inconsistent with the financial Statements or our knowled8e obtsined in the course of the audit, or otherpts¢ appears to be matlalIY Jnisstatd. If we identify sueh teria[ ine4)nsisteDcies or apparent material misstatemenw ive arE required to delemiine whether this giv¢s rise to a rnaterial misstatement in the ftDancial ststements therttselve5. If, b&8ed on the work we have performe(L we conclude that there is a material mi&8tatement of this oth¢r inforniation, w¢ ar¢ required to r¢port that facL We h&vE nothing to rqx)rt in this regard. 10
LENCH'S TRUST INDEPEEr4T AUDITOR'S REPORT For the year end¢d 31 Decernbtr 21122 Opinions on other matters prucTibed by thE Compaffjies Act 21106 tn our opinion. b&s¢d on th¢ work undertgken in the course of the audit: the infornjation Ven in the strategic report and the Boards, report for the financial year for which the fm&ncial ststements are prepared ts consistent with the financR statements: and the strategic report andthe Boards, rwrt Ive been preparnl in accordae with applicab16 legd requirements. Matter5 on which we required to report by eiceplion In light of the knowledge and underytandiDg of the co]npaThy and its enviroDmeDt obtsined itt the course of the audiL we have not identified mat&ial mi&tstemEnts in the strat¢gi¢ rwrt orthe B0d$. rwrL We haye nothing to rewrt in respcct of the foliowing Matte in rclation to which the Companies Act 2006 Tequires us to rewrt to ytsu if. in ouropinii>n'. lequate accounting records have not kepL or rclums thquate for our alldit have not been r¢ceiv¢d from branche5 tiot Tri51ted by us. or the fInCIal statements are n(rt in agrttMeith th¢ aVling re£(d5 returns. or ccrtaiD di5Glogur&q of Boards, rcmuneratioti specified by law are ttot mwle" or we have not [E1Ved all the inforniauon and explallatiOll5 we rr4uirr (orour audiL Re8ponsibili¢ies ofBoHrd As explained mor¢ fvlly in the Trnstee$' TespKTrnsibiliiies statement Set out on page 8. the Boyrd are respDnsibl¢ for th¢ pr¢parntiDtt of the financial 5tatemeDts and for being sotisfied that they give a true and fair view, and ftsr such internaI eolltrol as th¢ Board determine is ncce&sary to enable the w¢par8tion of fiDaDciai statemEnts that sre free from inaterial miSstateenl wheth¢r du¢ io fraud or error. In preparing the financi81 statements, the Board are rup0TrsI le for assessing the cornpany's ability to Continue as a goiTrg concern, disclosing, as applicabl¢, natters related to going concetll and using the goin2 concern basis of accoullting Unle85 the Board either intend to liquidafr th¢ wmpally orto te operations. or hav¢ DO realistic alternative butto do so. Auditor's responsibilitie8 for fhe audtt of the fjttallti•l Btstements Our objectives ar¢ io obtsin reasonable assurdttce about wbethel rhe financial statefflents as a whole are free from material isstatemenL whether due to fraud or error. attd trj ]ue auditor's report that includes ow opinian. Rwonable surance is a high level of assurance but is not a gusrantre that an audit ¢ondu¢ted in accord¥th¢e with ISAS (UK) will always dttect a material MiteM¢llt wh¢n il exists. Mi55tatellL¢nts arise from frdud or error and are considered material if, individllaily or in the regate, they Uld teasonably be expett&J to influenee the eeonomic decisions of users taken on tbe basis of the fiDancial 51atements. The extent to which our procedures are capablt of ddwAing irrtglljarities, including fraud is detailed below. IrregularitlC5, inGluding fraui are instsnces Of non-compliance with laws and regulation5. We d¢sign procllr¢S in line with owr responsibilities. OUtlin¢d above, to detect mattria] misstwements in respect ofirregulariti¢5, including fraud.
LENCH'S TrUST INDEpDEliT AUDITOR'S REPORT For the ye8r ended 31 December 2022 B&%ed on our understanding of the compaThy and its industry, we considered that n-cOmpliallCe with the following law5 and regulations might have a material effect on the finanei81 statements: employment regulation, hcalth 0d safety regulatioo. allti-money laundering regulation. To help us identify instances of M)n-¢ompliartce with these laws and regulations. ond in identifying and assessing the risks of terIal rnisstatern¢nt in r¢5pect to non-compliance. our procedure5 includ& l)ut were rK)t limited to.. Inquiring of mallagement an(L where appropriate, those ebarged governance, to whether the copanY is in mpliance with laws and regulations, and di$s]ng th¢iT ry)li¢i¢s aDd predur¢S regarding compiianco ]aws and regulati Inspecting rr¢s]X)nd¢llCe. if any. with relevant li¢£nsin8 or regulatory authorities. Conthiullicatillg identified laws and regulations to the engagement team remaini1 alert to any indi¢ation9 of non-compliaThce throu8hout our auditr. and Considering the risk ofa¢ts by the company which were conrrary to applicable laws and regulations. in¢luding frHUd. We also consid¢rcd th05¢ law5 and gUlatIo that have adirect ¢ffecton the preptration of the firnan¢ial statements, su¢h as tax legisl&tion, pension legislatio the Companies Act 2006. Housiu8 attd Regeneration Act 2008 and the Accounting Direetion forPllYale Registered Providers of Social Housin8 2022. In additio we cvaluated the Board and rnatMgemellt'5 incentiYe5 aDd opportUDitie5 for fraudulent mAnipulation of the finan¢ial ststem¢ttts, includtng th¢ risk of rnaDagement 0¢Ide of controls. and determined that the prinGipal risks related to posting manual journal ¢lltries to mlpUlate fula1 perforniance. maDa8e]nent bi&8 through judgcments and assumptions in signifi¢an¢ w¢ountin8 ¢5timate8 in p8rticular in lation to revenue reco8nitioD (which we pinpoint¢d io the cut-off a88ertion), and significant one-offorunusuaj tr8n5acti¢)ns. r audit pnKedures in relation to frnud incluikd butwere rB)t limit to: Making enquiries of the B(kard on whether they had knowle4Jge of any acbjal, 9pected or alleged Gaining an und¢rstsnding gf the Intern controls established to rni¢i88te risks related to fraud. Di$sIllg amongstthe engagement team the ri$k8 of frau. and Addressing the risk$ of fraud through manag¢rneDÉ ov¢rrid¢ of controls by perfonning ioumal enty tesiing. Thele ar¢ inhereni limitalions in the audit pmcedures des¢ribed aix)ve and the primary rcspDnsibility for the preventioll and deteetion of irregularities xn¢luding frdud re)ts i¥ith management. As with any audiL Éhue remaTned a risk of nott- d¢te¢tioTh of irregularities. these may involve collusioJL forgery, intentional omissions, rnisr¢pre5entations or the override of internal colltrol A further description of our responsibilities for the audit of the financia] State£llts i5 Iated on th¢ Financial RepDrtitJg Cowi¢il'8 bsITe at www.frc.o -llklaudAiorsres nsibilitie5. This d¢wiption fonns part of our auditor's Teport. 12
David Hoose (Jun 27, 2023 13:44 GMT+1)
Jun 27, 2023
LENCH'S TRUST STATEMENT OF COMPREHENSIVE LNCOME FOR ITAR ENDED 31 D¢¢ember 2022 Notes 2022 2021 TURNOVER 2,482,735 2,250,075 Operating expenditL¢ (2J71,780) (2,188,304) OPEIL4TING S[ILEs 110,955 61,771 Finance income Interest and financi8 eosts Surplus on disposat of fixed &8stts anse in fair value of inv&th¢nts 104040 (152JOO) 43,811 36,881 l16,561 {174,676) 214,413 222.028 I1112 TOTAL COMPREHEE4SIVE INCOME FOR THE YEAR 144,199 440,097 The financial statelnents on pag£g 14 to 31 wer¢ approv by the Trust on 18 May 2023 and were signed on their behalf A Malik. chairatt 14
LKNCH'S TRUST STATEMENf OF FINANCIAL POSTrioN AT 31 Deeember 2022 2022 Total C#pithl Fwid Income 2021 Total Note5 TANGtBLE FIXKD ASSETS Ho$]g propertits- cost Iw depreciation Investtnent properti&s Investm¢ryts Otherpropcrty, plant & equipment io li 12 13 15,667,Ih54 AI.949,IIKI 3237,145 15,667, 15,203.971 11,272,291 3,7S8,900 323,981 IIW9,1( 2,772J)O 464,845 563,046 TOTAL TrIXED ASSETS 31A16J55 14,nIh) 1&694,955 30.589,143 CURRENf AsSTs ]uv¢stments. casEL d¢posits Stock Trade alld otherdebtors Cash 14 16 15 4,710268 4,676J40 34,128 5,730,426 124,875 334,576 162,475 198,050 741,680 198,050 741,680 S,649,998 4,676,140 973,858 6J52,352 CREDITOILS: AMouf4TS FALLING DUE 17 (iJ7J,728) (lJ73,728) (777,707) T CURREYT ASSETS / (LIABttJTIES) 4376,270 4,67Q140 (399I70) 5.574,645 TOTAL ASSE]S LESS CURREJYr LI.4BILITIES 3&692,625 19J97A40 145,295,(5 36,163,788 CREDtTORS: AMOUNTS FALLING DUE AFfXR MORE TW4 ONE YFAR 18 {7,698J08) (7,698,108) (8,313,470) NET ASSffS 27.994A17 19J97,$40 8596,977 27,850,318 Revcnu¢ r¢strYe Pemianellt endowThent 25J03,409 2,691,108 16,706A32 2,691,108 8A96,977 25,227.109 2,623,209 TOTAL RESUIITS 27,994A17 19097540 s90,977 27,850,318 The financial statetnents on page 14 to 31 We approyed by the Thwees on 18 May 2023 and wer¢ signed on their behalf by.. AMalik- Chairnwi 15
LENCH'S TRUST STAY£MENT OF CHATr4GES IN RESERVES AT 31 De¢ember 2022 Revenue Permlleut reserye e]kdoThineDt Tot81 BALANCE AT I JANUARY 2022 25227,109 2,623209 27,850.318 Surplusl (deficit) from statement of comprehensive inwm¢ Transfa bctween rnenrs 144.199 (67,899) 144,199 67,899 BALAP4CE AT 31 DECEMBER 2022 25J03,409 2,691,108 27,994,517 Reyettoe Permallellt endowjnent Totsl BALANCE AT I JANUARY 2021 25.(K)l.148 2.409.073 27,410,221 Surplusl (deficit) from statement of comprehensive income Trallsfer betCell resctve5 440.097 (214,136) 440,097 214,136 BALATraCE AT 31 DECIThIBER 21121 25227,109 2,623,209 27.850,318 S¢e page 14 for ddails regarding th¢ Su11 (deficit) from ate]ne of comprehensive inco]ne. The trallrfer between reserv&% is ihe amount of gaitt Oow8) rtsiiscd on dispos71 of investments within the capiial portfolio transferred from the re¥'enuc rescrve illto the Perllwient Ettdowment account. 16
LENCH'S TRLSt STATEMEhT OF CASH FLOWS For tl)e v¢ar ended 31 Deber 2012 2022 2021 restated Notes CASH (oifTFLOW)ILYFLOW FROM OPERATLYG ACTivrrtKs I,D85,634 721 CASH FLOWS FROM FINANCING ACTivrriES Dividends, Inter¢st & Rent receiv Interest paid Housing loan (repaIdyeIye 3¥087 {152JOO) {478J40) 282,082 {174.676) (456,797) (302SS3) (349,391) CASH FLOWS FROM INVESTING AcrMTIES Purchase of housing propttties (including Comp0nts) Puwh&%e oe other propety. plan ¢quipm¢n'. investnjent properti£ Decrease in investtllent deposiis ProCtt from sale of sbared owiership (I,(ILlm5) (l52,263) (321160 1,020.158 124J75 (86,470) 530,554 Procctds fTQm sale of Investments Pur¢lJase of inY£sbnents 285ffj55 (288,513) 486,584 (462.441) 1203O7ffj 315,964 ET CHANGE IN CASH Ahl) CASH EQUtVALENTS $79,205 132,706) Cash and cash eouivalents at th6 beIng of th¢ year 162.475 195,181 Cash and cath CquivCts at the end of the 741,080 162,475 A) RECONCILIATION OF OPERATThG SITRPLUS TO P4ET CAS INFLOWI (oirrFLON) FROM OPERATriG ACTIN,lEs 2022 2021 Oper£ting surplus for the year (tncreasey deerease in dd)tors In¢re&4 (deerse} irt ¢reditors MOveellt in stock Depreciation Amort%sation of Government grant Rents from inv£stmeut5 IIOP55 136,526 574J87 61,771 (132,435) (20,7161 (91,1251 464,081 (l15,331) {165,524) 602J4J (115J31) {223,244) Nft cash (outtlowyinflow frollL OP6rating actiYiti&8 1,085,634 721 17
LENCH'S TRusr STATEMENf OF CASH FLOWS For the year ended 31 Deeember 21122 ANALY51S OF CHANGFS LY TrIET DEBT At the start of the ycar Fair value Movernents Othernon- AA the end of the year Cashflows es 162,475 461,714 579 205 {341.276) 741680 120,438 Short term current et innyes¢menis LOD8 t¢rni current asset investments Overdraft 5268,712 (678,883) 4,589,829 Borrowin Bottowin over I Finance leases 2 684 106 37 Prfor tar rest8temeut The piior year comparativoi of cash c&8h quivalents previously includd short tem and long-temi current asset investrneiits, which are noi cla&8ÈfJed as rtadiiy available casli ap.d Should ILave been excluded for the purp0565 of tbe ¢&ghflow *a¢emeni. The prior year ¢omparatives have been restated to exclude these amolD] The ameimlmaits do not have an impoct on net a5qer8 or the StateThe of comprehensive inco]ne. 18
LENCHIS TRUST NOTES TO THE FINANCL4L STATEMENrs For the year ended 31 D¢¢¢mbeT 2022 ACCOUNfiNG POLtClES (8) Bi$ls of ¢wwiting The financial statemellts are pr£sented in Sterling (£) and orc preparal under the historical cost convention, as mi)dified to itielude certain iiems at fair valu4 in ac¢ordan¢e th Finallciai Reporting StaLdard 102 {FRS 102) i&sued by the Financial qrtIng Coullcil glld romply with the Aceounting Direction for Private Registered Providers of SoGiai HOttg 2022, the Statement of R¢xornmended Practice for Registered Social Housing Providers 2018 (SORP) the Housing and Regenertion Act 21KJ8. Lench's Trust is B public beDefit entity (PBE), as defin¢d in FRS 102 attd applies the Televant paiTrgraphs prefixed '?BE" in FRS 102. The &55(xiation is registered under the CornpaDi£S Art 2006 and is a rcgisterd provider of social bousing. ThE principl¢ actiyitics of Lcnch's Trust are to provide houstng to ovcr 55's in the Birniitigbam area and to prevent orrelieve poverty foT ourresidents. Goillg Concern Under the governance r4uirtmen the Trust¢¢8 CODfirnL that aftu making enquirics tbry have a r¢asotRble expe¢tAtion that the Tn]st h&4 adequate to COntiU¢ in Dperational exisieiice for the foreseeable fuDJre. Aecordingly. they coDtillu¢to adopt the going concern basis in PTeparing the accounts. Whilst we have seen additional pressures dlle to the eurrnt eLonomic ¢limate, the board hav¢ prepared forrcasts for the current ye4r which show that the Tn will ]Deet its Bank Covellatst# in the Current ycar d that cash fLow remaills strong. On this b&8is. tht Board has a reasonable eAyectation that LM¢h's TnE5t h&s Jequat¢ resources to contilluc in operatiollal existence for the fvreseeablt flltte, being a peri(Ki of twelve llLOlltb5 after the date orl wbieh the rcport and finaneial statements a sigThe(L For tbis rea5 it continu¢s to adopt the goirlg concern basis in the fillanciai steraents. (b) {c) Tur])over Turnov¥ represents residents, contributions receiwable in rwect of A]rnshou5e6 (net oflosses fro]n N'oids), Tents r¢ceivable fro investment prc4Krtj, pr(Keals frorn fit8t ¢rwhche shared oWnship sales, revenue grallts re¢rrivable frollL Local AuthoTiti&s atsd Homes England, togdllcr with dDnatiODS. CAPitai fuDd The capital fund r4)r¢sents th'¢ oiiginai endOwent of the Trus5 togeth¢r with Subsequent accwnulatiolls. The capitsl now consists of fr¢eTrK)Id propcrty, producing rerttsl in¢om4 loans and itiVEStments. (d) (e) In¢ fund All the Trusts income is accounted for through the income fund w)unL Recog1110 of housing propertles nd other fixed #sstts Cosl includ£s ibe cost of acquiring laDd alld buildirlgs, directly attTibutable dcvelopment cost8 Bnd borrowing cosls direedy attrItable to the Cons110n of new b$1@ properti during tbe dek¢lopm¢nt. Capita]isation ce&w when substantially all the activiti4s that are Decessary to get the asset ready for use are ¢ornple Depreeiatlon Dq)reciation is ¢harded to ]t¢ down the cost of freehold housing pr(wties to their tstillted rcsiduai ue on a straigbt-lkne basis over their expttted useful Konomic lives as follows.. Freehold land Not depreciated Housing prowtie8 100 or 50 years Major components are treated as s¢parable and depreciatd over their iated uscfill economic liyes or the lives of the pft)perti&% to which they relat4 if shorter. at the following allDual rates: Roofs Soycars IOy& 10 ye•rs 10 >ears 20 years (D (&) Kiteb¢ns BalbrooS Boilers Windows & Doors 19
NCH'S TRUST E40TES TO THE FINANCIAL STATEMLNTS For the vear ended31 December 2022 Ikpreeiation is calculat¢d to write off tbe cost of Oth propty, ptant & equip]nent (PPB) on a straight-line basis oY¢r th¢ir estimated vs¢fut liv& at th¢ followiog annual rate5'. Office pronises 30 yea Office equipme1 5 y¢atS AccomtlatiOn equipmcllt S years Motor vehicles (h) Itupolrment of sod21 houolDg propertles Propcrtiu held for their social benefit are not held solely foT th¢ cash inflgws thty gerter8te attd areheld for their service potelltial. An ass&4ment is made at each rqK>rtin8 date as to wbetbtt an indicator of impairm¢]Jt exisL8. If such an indicator exists, an impairnLeDt aSie&%eThI is carried out and an estimate of the t¢coverabl¢ wnourlt of the asset is made. IkThere the ¢arrying amount of asse. ¢xceeAts its TecoY¢rable aOU( aD IpaI[[[Lent IDS5 15 re¢ognised in suRuS or defi¢it in ibe Sthr¢ment of Q)]nprehesivt Income. The recoverable amount of all asset As the kn'glKr of lis value in use and fair tralue less cos¢s to sell. Where &ssets are held for tbeir servicc potential. value in use is determined by the present value of the asSCt'5 tEmatning seryice potential plus the net amount awted to be reccived frollL IL8 dI5)SaL DqJre£iatvl rq)l&emeLt is taken as a suitsble me&ureMcnt tnodel. An impairment loss is r¢versa if the rewns for the impainn¢nt105s have ¢e&Ed to apply and included in surplus or deficit in the Sthtemetst of Comprehensiv¢ Incom Work$ to existing propert&es EXpElldltu on housing properties wbich results in an thanceettt of the economic benefits of the property is capitaiise<L in accordancc M'ith the reqlliremeDts of the SORP. HoTLsing Grt (SHG) other t11 8nd government grauts Grants relating to assets are rccognised as income on a sysltrnatic b8Si5 over the expected weful life of the . Grants re¢¢iv¢d for housing prowies are rwiSl as incorne over the cxpect&J useful life of th¢ hJS]ng propw structure. thxttts r1Ved fiom non-government sources are rwised revenue using the pcrforniance modcl. Durtng the year the conpally obtained grallts from the LX. government iti relation to E41ucation and Electric vehicles in the amount of £7L Grants aT¢ accounted for under th¢ accrual 0de1. Grallts lating to revenue arc re¢ognis¢d in other operdtitig income on a systematic basis nver th¢ period in which tlie related cost5 are ineurred. Grallts for Compensation are reeogDisd in ineome in the period to which thry b¢¢ome re£eivabl¢. Invesnnents (r) fj) Oi) Itttrestment Pmperties are measur1 et eost on itjitial rtcognition and subswtly at fair value &8 at tILe year- end, with changes iti fairvalue recognised as a surplus or deficit in the S¢atAnenl of Corllprehensive Jnc4)me. As at 31. DeCebEr 2022, the illYe5tttKnt properti¢s hEld bave beets tevalthed by Savills 8nd currently show in the accounis at their Market Vam& o) Imvestmellt propertie$ Investment properties consist of land alld commetcial priyerti&s not held for the swi41 benefit but for use in th¢ busilless Investment properties are meaqued at wst on initial Kecognition and bSequent[Y at fair value at the year en& with clwnges irt fair Yalu¢ retogtii in Slaiement of Comprehensive Income. Our luvesttllent proithies haye been reva]ued at 31° DecallbEt 2022 by Savills and currently show in the accoullÉs at their Market Value at the yGV-en(L Operatlng leases Le&84s that do not transfer all the risks aod rewords of ownerdiip classified operatiDg IEa5&5. Payments undEr (perati]Jg le&%65 ate Gharged to the Sta(Ct of CompreheDSiV¢ tn¢om¢ on a stTaight-lin¢ b&sis over the lease tenn. (ty) 20
LENCH'S TRUST NOTES TO THE FlNcIAL sfATFIIENTS For the yeBr ended 31 De¢¢mb¢r 2022 lllterest IlnAndng costi Interest Charges illcurred on the of housing properties are capitslised up to tbe date of pra¢ti¢o1 tompletion. Interest charges wising after that date are charged to th¢ statetnent of Comprehensivc income. Pellslons The TTr operat£9 dEfmed contribution pension Sch. the c4)sLs of wbich ate wr5tten off to th¢ Ststement of Clhllprehensive Jncome on all accrual ba$. The &ss¢ts of the Khemes a hem separately from th¢)se of the Trust ill indcpend¢nlly admini5rered fun(L%. Shar¢d owner5hlp pruperties The Tn¢ has adopted the SORP xcounting treatment for shaml ownership prowties. Ail prop¢rties are split bdw¢cn fixed alld CUTrellt assets in line with the expectstion relating to the trallche sal¢ percentage. The expected first trdTh¢he proportiort is cla&Tified as a curretrt asset until the poillt of the fiE5t traLJ¢he sale. The curretjt asset is then trallsfffred lo cost of and rnehcd &gaillst sales proceals within the operating sujplus in the staternent of comprehensiv¢ income. Any wats.ng suTrllls is restricted to the ovttall surplus which tak COllnt of the Existing Va]ue- &Kial Housing (BUV-SEI) of tbe t¢maining fixed tlement. The remaining element of the &t is classified as a fixed &4sd and iticluded in housing prwies at cos¢ less ally provision fordtyreciation or 1mpairnit. (q) Cash and ¢a$h ¢quÈvAlents C&sh and sh quivalents comprise cash in hand and demand deposits. together with other short tai4 bigbly liquid invesknents tbat are rewjily known amounts of and subjcct to an ittsigtiificant risk of change ill value. (o) (p) (r) Financiall]ltUts Financial asms and ]Snan¢iai ]iabiiitio4 are recogni when th¢ Trust beeonkes a paty to the COlltra¢tllal provisions of the instrucllt. FinAnclalawlscarried eo Finaucial 8cts caTri(xJ al amorti5ed cost cotllprise rent aTrears: ttade a]Jd other rectiYable8 alld cash and cash equivalents. Financial assL#s are iryitiaily recoEDi59J a¢ faiT NTlue plus directly attributable transaction Cl>Sts. After Initi ff£ogllitLO they are mcawred at amortised COA using th¢ cffective intercst meth¢)d. Discollllfing is onlltted wh¢Te the effect of discoutLting is in)mal¢rial. If there is objectiv¢ ¢derce that tbcrc is an imp8irnirnt lo&s, the 8mount Df the loss is measuttd as the th'ffereDC¢ bet¥Tr"etn the asset's ¢aTrying amount aud the present va]ue of estimated future cash flows discounted At the finan¢ial asset's oriwnal ¢tive intercst rate. The cajrying amount of thc is reduc¢d accordillgly. A fllwiGial asset is dffewi5ed wllen the wlltractua] rigbts to the cash flows ¢xpire, ot when the fjnanciai &gset and all 5ubsialltial and r¢ward are traTL5ferred. If an arrnDgeJn¢nt constitutes a financing transactio]4 the fi]Mncial asset is me&gJred at the pr¢8att value of the firture payments dis¢(KtrAI at a markd Tat¢ of iD¢er¢ for a similardebt instn]JD¢nL Fin4claI liabilities e4rrlÉd &mOrtd¢o51 These financial liabilities include trade aDd otherp4'ables and intcreA bearing loaJs and 0wIngs. Non-curr¢nt debt instnllnents whicb meet the necesw- eonditions in FRS 102, are initially re¢ognised at fair value adjusted for any diTe¢tly attributable transaction cost and 5ubsequent]y measured at atnortis¢d Cost using the effe¢tive intercst method with inlerest-related ChaeS rwognised a5 all exp¢n5c in finance costs in the Statement of cOprehensI'e Income. Dis¢wniing is omittej whcrc the effeet of discoujtting is immaterial. A fin8mcial liability 1$ d¢reco8lli8ed olY whcn the contrdctual obligation is extinguishoj, that is wlien th¢ obli8atiOll 15 di5cbargcd, &(1]Ed or expires. 21
LENCH'S TRUST STATEMENI OF CASH FLOWS For the year ended 31 IkceJobEr 2022 For rent arreATS whcrc the afranguncnt Co[Ltut4 in effecL a financing transaction beeau5e tsf extended credit amngonents the arrears are measured at thepre8ent value of the payments dis¢ouDt¢d at an appropriate markd rate of interest. (s) llolid*y p8y a¢erual A liability is recognised to the extent of any unused holiday pay entitlement which has ¢ru¢d at the year end and is Ca)ed fonvard to fuwr¢ year&
LKNCH'S TRUST NOThS TO THE FINANCIAL STATEMLYrs For the yw ¢nded 31 Dttember 2022 SIGNIFICANT MANAGLMENf JUDGEMENf3 AND KEY SOURCLS OF ESTtMATION UNCERTAIyrrY The prq)aralion of the fiDaDcial statements M]uites tDanagetllent to make judgeme e5tirnatC8 and asumPtiOnS tILat affect the application of policies and reportd amounts of assets and liabi]ities, income and expuw. The estimates attd a&swied &5>UtnptSODS atr based on historicaL experieTh¢¢ arld various other factors that ar¢ believed to bE reasotJabl¢ llnder the circumstances, the Tesults of which form the basis of king thc judgcments about Carrying values of assets and liabiliti t]wt 3r¢ Dot reJily apparent from other sources. Actual results njay differ from these estitr,at¢s. Estiniwes alld UDderlying assumption8 are reviewed on ongoing basis. Revisions to accounting Estimatrs arc recognised in the peri(xL in wbi¢h th¢ estimatc is revised attd in any period5 affected. Slgnificg4nt tttallgenkellt Jlldg¢mellts iDn aDd residual vahs. The Trustees have reviewed the a5t livts aud associated residual values of all fed at classes. and in paTticular, the useful economic life and residual value of pwpthie4 and have concluded that asset lives aDd rssidllal values are appropriate. Proiisions d accrnals Mauagemeni bases it5 iudgemcnts on the cimmstanees relating to each specific Evart and upon currently available infottllation. Howc%er, gi¢ the itiherelli difficulties irl estillkatitsg liabiliti¢s in these it ¢aThnot be guaranteed ÉlLèt additional costs ikill not be illcud twond the 8mounlS aCCrn. Fstimation uncertai The Trust makss estimate8 and wjmptions concerning the fu£ The rasultiDg accouutitig estimates will. by defillition, seldom ¢4ual the rdated actual r&8ults. The estimat&s alld a55uIIipuons that have a significant risk of using a rnatfflal adjustment to the carrying allLOUllt5 of asscts and li8bilities within the next financial year are addressed bdow. lllYE5tmcrtt valuation The Trust Cgnie6 its investment pr(yertics at fakr va]ue and ¢wges independ¢nt valuers to detennine fair valu¢ usinE valuation technique6. The c&lculatcd fair value of the investment property uses assuptionS whi¢h ar¢ bje¢t lo judgEllLEDt. $u¢h as the estimated yield and the long-term vacallry rnte. The carrying value of the Trnst's inv)ellt propertics call be found in nor¢ I l of thefuwicial &ementS.
LEf4CH'S TRUST r40TES TO THE FINANCIAL STATEL¥£8r(rs For the yr e]ed31 DeCeber 2022 TURNOVER AND OPERATINC COSTS 2022 Oper8tillg surplusl (deficft) Oper8tlng Income and expendfture from lettlngs (Trote 3) IJDI,8XJ {IA28,672) 473 J81 Other Income and extndlture Care servicGs Catering smices Rents from lnYcstmrt propcrti& Management Charges Donations Oth¢r adrninistrative eosts 276,968 68,670 22J,244 (398082) (9069) (26579) (121,914) (22.1991 196,665 5,0( (426,778) (419.778) Total 2,481735 (2J71,780) 110,955 2021 Operating surplu (deficit) TuTJMTrver eosts lllcome and upe]ltUre lettings (]te 3a) 1,815.146 (1230.167) 584,979 Other iue•me and •xpondithre Care serviccs Catering services R¢Dts from invc*lmentproptt1ies Mallagenwrt Charge8 Donatioll5 Other &dministrdtiYe &t$ 221.600 42,8(KJ 165,524 (392966) (86,031) (91.891) (171,366) (43,231) 73,633 5,000 (387.249) (387249) Total 2.250.075 (1188.304) 61,771 24
LENCH'S TRusr NOTES TO THE Fll¥ANCIAL sTATEIEFIrs For th¢ year ended 31 Dttember 2022 PARTICULAKS OF INCOLIIE AND EXPENDrrLRE FROM LEfnNGS 21122 2021 Housing n(nUti9llS receivable net of voids - T¢Dted . shared owoeJsbip L684,113 52209 50200 115J31 1,598,558 51,057 50,2(K> 115,331 Other housing rent Amorti5ation of SHG Total incom¢ fro Idtings 1,901053 1,815.146 F4end1threfrO lettings Housing aeeon)mcxJatio Servi¢es Management Dq)Eeciation of hcKtsing prowtie Repairs and mailltellance 174,443 453,585 574,684 225,900 l39J52 404,IM15 436,339 250,471 Totsi housing 0*tillg costs 1,42&672 1,230,167 Operating surplus from lettings 473,181 584,979 Voidlosses for the year were £16,288 (202I-. £i2.850). Included within houting conttibutiolls ¢t1Vable is seryice charge income of £754,597 for thE wrrent yw 12021: £846.942) FINANCE IP4COL¥IK 2022 2021 Investment income 81263 22577 75,771 40,790 1114,840 116,561 25
LENCH'S TRiJST OTES TO THE FINANCIAL gfATELlfLNTS For tht year ended 31 Ikcember 2ts22 SURPLUS OTr1 DtSPOSAL OF FIXKD ASSETS 2022 2021 Sulplus on sale of quoted invetheDts Deficit on disposal of other fixed &%s&s 81,218 (37J95) 225.175 (10,762) 43,813 214,413 INIEREST AND FIF4ATricfiG COSTS 21122 2021 Bank Ioary5 not wholly T¢payable within fiveyea 152JOO l74,676 SiJRPLUS ON ORDJNARY Acrivrr 2022 2021 Surplus on ordillary activities is stated after ¢h8rwgl(cr¢diting).' Depreciation of fixed &ssets Amonisation of GoiemmeDt grants Auditor's remutserdUQn'. In their capacity as auditor Other servicrs I£a5e paym¢nts rolS¢0 08 wense during the y¢ar 602J41 {115J31) 464,082 (115,331) 12,250 5,030 16,971 10,050 6,655 16,971 srAYF COSTS 2022 2021 Wages and salaTieS Social security costs Ot1 pension costs 939,126 73,129 74.030 865,719 65,031 65,346 1,086385 996,096 Average number of ll-tIme equivalent pusons anplOY duTiDg th¢year. Flumber Number Office Other schune staff Cart 12 14 18 Totsl ployeeS 36 36 Avcragc llUber of employecs is ealcuiated using the of hours W0ed by eath tplOYEe. Full tim¢ hours ar¢ bas on 35 bours per week
LENCHS TRUST NOTES TO THE FINANCL¥L STATEMEFrrs For the y¢r ended31 December 2022 CHIEF EXECUTIVE'S EMoLU1¥[S 21122 2021 Chief execDtiv¢'Y Solary ChiEf executivc's prtision contributiorys Employer'5 73,167 7J16 8,651 70,966 7,096 8.084 The emolum¢nts of ¢hi¢f ¢xe£ulive disclosed above, excluding pe8]on contributions, include amOUts paid to.. The high¢* paid employee 73,167 70,966 The Chief Executive is ¢1]fied Js k¢y managellt petSODnd and 15 a member of the T[$t,& defined contribution pensioD scherne on th¢ someiemu as all othetanploye£% no special tern]s apply. The Trustees do not ieceive any ernolumots and no CxkseS were ttimbursed to TTUSt¢es during the year (2021: nil). The ll-tIte equivalent nurnber of staff who rtteivoj remunffatiffj greater £60,(0 (including th¢ exeeutive teatn): 2022 2021 Numbcr Numb¢r £70.(N)0- £80.00 io. FIXED ASSETS- Hougkng propertle5 Shwed Completed ov118b1P Total COST At l January 2022 Addiliolls Disposals 18,101,447 1,023.886 (157,579) 804,624 18,906,071 1,0?3,886 {157,572) At 31 Dllber2022 18,967,761 804.624 19,772J85 DEPRECIATION At l Jalluarj 2022 Charge for year Disposals 3.556,367 509.575 (1?2,&147) 145.733 16,093 3,702,100 5?5.668 (122,447) At 31 Dttember 2022 3,943,495 161,826 4,105J21 NET BOOK VALL At 31 DeCeber 2022 15,1124266 641798 15.067,064 At 31 December2021 14545.080 658.891 15,203.971 All h(8]llg propeiti&% are fr¢¢hold. 27
LENCH'S TRusr NOTES TO THE FINANCIAL STATE'MENTS For the yefir ellded 31 De¢¢mber 2022 ii. FIXED sSETs- Invtytment laDd and properties (Frethold) 2022 2021 COST OR FAIR VALUE At l January Rcvaluation Additions 11272291 671709 4,100 11,234,963 37,328 At 31 Decerllber 11,949,100 11.272,291 Inyestmetjt PToperties consist of land al ¢0CtriaL propattes llot hcld for thc la1 benefit but for use in tILe business. Our Investment propertics haye becn revalued &s at 31* De£ernber 2022 by Savhlls using the quoted mark price. 12. FIXTD Assrrs- Listed illvestmeDts 2022 2021 Income C8 At l Jalluary Additions Disposals 2J73,190 288,510 (204,437) 2,172,146 462,453 (261,409) At 31 Dllber 2,457.Z63 2,373,190 Cosi 2022 Mark¢t Tralue 2022 2021 2021 British GoYernDeLt fixed interfA inv&4tJnents OtbEr li5f¢d investlllents 2l.500 2J51,690 18,450 3.218,695 22,155 3,766,745 1435,763 Total invcsttnellts 4457 2J73,19) 3,237,145 3,788,900 2022 2021 Mark¢t Valu¢: At l January Add.. Additions to Investent at cost L£ss.' Disposals at carrying value {Lc%s)ladd.. Change in fair vaille of investments 3.788.9 288.510 (204J37) (635028) 3,365,828 462,453 {261,409) 222,028 At 31 Dember 3,237.145 3.788,900 28
LENCH'S TRUST E40TLS TO THE FENANCIAL STATEMENTS For the year ended JI Jl¢¢¢mber 2022 13. OTHER PROPERTY, PLANT & EQLUPMENr Offi¢¢ actommodathn preml equipment Motor vehlcles TotAI COST At l JaDuary 2022 Additions Di4)osals 238,714 3J96 562,528 270,896 (35,487) 19,305 43.774 820547 318,(%56 (35,487) At 31 D<ber 2022 241110 797937 03,079 1,103,126 DEPRECIATIO A¢ l January 2022 Depreciauott for tbe yrar DiSposS 24.419 8.009 452,842 58,515 (33,156) I9.305 10,146 496,566 76,670 (33,156) At 31 Dcccmber 2022 32828 478201 29A51 NET BOOK VALUE At 31 Deccmbu 2022 2(VJ,682 319,736 33,628 563,046 At 31 December 2021 214295 109.686 323.981 D¢preciatiDn ratf 3.33Y¢ 254/. 14. CURRENf ASSET If4vESTMENTS 21122 2021 cIlti£S Dq*t Fund and Nati()na] Savings Ballk Invesl]nent A¢¢oullt red¢ernablt withiti one vear attd lunds held by Brok pending inv&%tsnfflt. Capitsj fund Jllco¢ fund 59,018 4,651,250 76,744 5,653,682 4.710268 5,730,426 Is. DEvfoRS 2022 2021 Incomefwid TTad¢ debtors Prepaymellts and a¢¢ru¢d income Olber debto 55,412 121A30 21,108 226.250 91,307 17,019 198.050 334,576 29
LENCH'S TRvsr N(¥fF.S TO FtNANCLIL STAIT.MF.f4TS For the year elled 31 De¢ember 2022 16. STOCK 2022 2021 Incomefvnd Stock- shaTed ownership PTlWti4s 124,875 124,875 All sale of shared ownership ppertE&S ocu]rnl during 2fy22 and thffe #r¢ none to be held in stock at the year end. 17. CREDfroRS {AMoLwfs FALLING DIJE WITBIN ONE YEA Xmcomefund 2022 2021 Housing loaDS Trade crcditors Taxation and Sla1 sity Acrmals and d¢frErrd incom¢ Other creditors Governmerlt grants (note 20) 500,721 681,997 18,674 51,117 5,768 11SJ31 479,030 72,703 55,993 47,190 7,460 115,331 lJ73.728 777,707 CREDrfoRS (AMOUYTS FALLlTriG DUE AFfERMORE OIIT YEAR) 2022 2021 Incomefund Lloyds Bank l¢)an 2,084,1 3,184,137 Totsl In8]ng 104ns Gov¢rnmu)t grants (nole 20) 2,684,11 5,014,W2 3,184,137 5,129,333 7,698,108 8.313.470 doneAnolys£i ofHousittglow.' Amounts repayable by inSme not wholly rq)ayable Vpithi five years: Repayable within five y&qT5 Repayable after fiv¢ years 1,91&858 765,248 2,107,011 1,077,1?6 2,684,106 3,184,137 The housillg loan from Lloyds Bank are secured by spechfic charge5 on the Trust's housillg properties (1° chargc over Lellch's Close, datd 2Th January 201511* Charg over William Lcnch Court, dated 201h June 2014) and are repayable at a fixed rat&8 of inter&# of 4.2Yo and 5.2/. 30
LENCH'S TRUST NOTES TO THE FINANCIAL STATEMENI For the yr ended 31 D¢¢¢mber 2022 19. The canying values of thecotnpany's finallcial assets and liabilities ate ttnariSed by category below.. 2021 2021 Fhwi£iai %&sets Mea5ur¢d at fair valllc through StatemeTLt of ComweheDStve Income Listtd ittvethenls (scc notr 12) tllvestm¢nt properties (sec ll(*c 11) 3,237,145 3,788,9(M) 11949,100 11,272291 2022 2021 Flnan¢iai Ilablllt msllred at amortised clt IA)ans payable (see notes 17 & 18) 3,184827 3,663,167 Me&wred at undi5COUUted amount payable Trade and other ¢reditors (s¢e notr 15) 687,765 80,163 20. 2022 202k At l January Grnits rttcivable Alnortisation to statem¢Dt of compreheDsivc in¢ome 5244ffj66 5,359,997 {J15J31) (115,331) At 31 tkcember 5,512J35 5,244,666 Due < I vear 115J33 115,333 Du¢ > l year 5,01{1102 5,129,333 The cumula(iv¢ atnount of SHG received by the Trnst is £6.749,124. 21. ACCOMMODATION IN MANAGE_MENT At the year end acciytDrntion in management W&8 as follows: 21)22 Nllmber 2021 Nurnber SupportedHousing (Extra Care) Housing for older ple Shared owerslP 84 88 Toial ts owned 183 183 There were no units iti develwnent at the year-elld (2021: nil). 31
LEf4cH'S TRusr r40TFS TO THF, FINANCIAL STATEMKNTS For the ytAr eJMled 31 December 21Tr22 22. LEGISTIvE PROTrISIOYS The Ttust is an Almshouse Cbarity registered by a Scheme of tbc Charity CoTnmt&sionm and register&l ill Englalld alld Wales under tbe Companies Act 2. RILAIED PARTY TRNsACTIo.s There are no Edated party tr8Dsaction$ to r¢p)rt. 24. OPFRATtNG I,F.ASF, c0Th£Mr[lS The total foture]ninitnum lease paylljents UDdet non-rancel]able owating lea8es are follows: 2022 2021 Payments due.. - Witbin one year Between olle andfiveyears 16,971 18,829 16,971 35,800 35,800 51771 25. PENSION COmMrrMTs The charity opttates defined CODtributionretiremeJt berit Se1$ forgll qualifying employees. The total &Ypense charged to the statemellt of con)preheDsive incorne in the ended 311)ecernber 2022 was £74.030 (9021.. £65J46). Contributions of £Xil (?021- £8.497) M¢r¢ payable to the fund at the Balance Shttt date and wey included withirt rreditors4Juc Mithitj one ye4r. 32