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2020-08-31-accounts

Sturts Community Trust Financial Statements Year Ended 31 August 2020

Homes and Communities Agency registration number: 5089 Company registration number: 08359958

Charity registration number: 1152152

Sturts Community Trust Financial Statements Year Ended 31 August 2020

Contents
Page
Registered Social Housing Provider Information 1
Board Report 2 – 9
Statement of Responsibilities of the Board 10
Independent Auditor’s Report 11 - 13
Statement of Comprehensive Income (including Income and Expenditure Account) 14
Balance Sheet 15
Statement of Changes in Reserves 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 –32

Sturts Community Trust Registered Provider Information Year Ended 31 August 2020

Homes and Communities Agency registration
number 5089
Company registration number 08359958
Charity registration number 1152152
Members of the board Mr Michael Breen(appointed 10 February 2020)
Mr Timothy David Cook(resigned 6 April 2020)
Mr Michael Crutchley(resigned 6 October 2019)
Mrs Caroline Rosemary Darby-Jenkins
Ms Morag Margaret Doyle
Mrs Gabrielle Mary Gray
Mrs Katherine Mary Jones
Mrs Joy Elizabeth Malyon
Mr David Harvey Taylor
Secretary Mrs Helen Elizabeth Breen (appointed 10
February 2020)
Registered office Sturts Farm
Three Cross Road
West Moors
Ferndown
BH22 0NF
Auditor PKF Francis Clark
Towngate House
2 – 8 Parkstone Road
Poole
BH15 2PW
Bankers NatWest
Ringwood branch
11 High Street
Ringwood
Hants
BH24 1BA

Page 1

Sturts Community Trust Board Report Year Ended 31 August 2020

The board of Sturts Community Trust presents their report, and the audited financial statements of the registered provider for the year ended 31 August 2020.

Directors of the board

The directors of the board who have served during the year were as follows:

Mr Michael Breen (appointed 10 February 2020) Mr Timothy David Cook (resigned 6 April 2020) Mr Michael Crutchley (resigned 6 October 2019) Mrs Caroline Rosemary Darby-Jenkins Ms Morag Margaret Doyle Mrs Gabrielle Mary Gray Mrs Katherine Mary Jones Mrs Joy Elizabeth Malyon Mr David Harvey Taylor

The purpose of this report is for Sturts Community Trust’s Board to present audited financial statements for the year ended August 2020, which have been prepared in accordance with the Statement of Recommended Practice (SORP 2018).

Chairman’s report

It is with pleasure that I present the Chairman’s Report on Sturts Community Trust (“Sturts”) for the financial year ended 31[st] August 2020.

Due to Covid-19 and the imposition of numerous and ever stricter lockdowns, it has clearly been one of the most challenging years in the history of the Association. As one would expect the health and safety of all those supported at Sturts has been our primary focus. However, notwithstanding the difficulties presented by Covid-19, I am delighted to report that, where safely possible, our ambitious development plans have continued unabated.

The ability of the organisation to adapt to these challenges together with our commitment to the Association’s principal objectives has enabled us to achieve a number of successes in what has been an unprecedented year. In spite of the necessary limitations imposed on our usual ways of operating, Sturts has maintained and strengthened its connectivity with the local community, particularly through the Social Enterprise initiative. The vision of broadening inclusivity locally continues to be an underlying tenet and driving force of the Association. The opportunity to enable the people we support to engage in tractor based activities through the purchase and use of a dual control tractor marked a further move towards our goal of such inclusivity in working the land.

Managing care for supported people in a Covid safe environment has been especially difficult over the last 6 months and inevitably became an immediate priority involving the restructuring of support, additional training and regular reporting to families and the Board of Trustees (“the Board”). Our success in keeping people safe, well and reassured during the pandemic can largely be credited to the foresight applied in implementing high levels of infection control measures a month before government requirements, coupled with the commitment and diligence of the support team in applying and adhering to such measures. This endeavour was made possible because of the sacrifices made by the staff and the Co-housing Community as a whole. In a sector facing national recruitment difficulties the Board is most grateful for the dedication of this highly skilled and devoted team.

The commencement of the building works for the Twin Oaks housing project of 17 residential units just as Covid and lockdown measures took hold throughout the country was an undertaking that was certainly not for the fainthearted! The fact that it has been achieved and is thus far progressing on time and within budget is most gratifying and a testament to the team involved. We look forward to the completion of this development and the strengthening of the shared community living ethos it will bring to Clover Co-housing. I would also like to take this opportunity to express our gratitude to the following funders for their support in relation to this project:

The Albert Hunt Trust The Camphill Foundation Garfield Weston Foundation Homes England

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Sturts Community Trust Board Report Year Ended 31 August 2020

The 29th May 1961 Charitable Trust Talbot Village Trust The Clothworkers' Foundation The Edward Gostling Foundation Wolfson Foundation

The continuing pandemic has caused a number of the Association’s activities to cease or become no longer feasible in a socially distanced environment where health and the protection of lives became the priority. Notwithstanding this, the Gulliver’s Farm Shop & Café team swiftly responded to the closure of indoor seating venues with some inventive lateral thinking. This included the team delivering fresh food and vegetable boxes in and around West Moors, particularly to vulnerable members of the community, the innovation of a takeaway service from Gulliver’s Waffle Box, the use of the Food Trailer and the socially distanced outdoor cinema experiences. These efforts were rewarded by an appreciative local community through increased orders for Sturt’s organically grown produce.

Looking to the future we have even greater expansion plans currently being worked on including the extension of Gulliver’s Farm Shop & Café to a larger health food café and the provision of a Hub in the form of a community resource providing education on the benefits of farming organically and with sustainability. Our plans to modernise the farm will further facilitate local engagement in biodynamic and organic food production. In response to increased demand and the Association’s intention to broaden the diversity of those it supports, Sturts intends to further increase its residential accommodation with the construction of a building to provide for people with increased mobility and care needs.

Sturts very much looks forward to continuing to support our companions and to the safe return of normal life including celebrations and events being shared with the local community.

Michael Breen Chair of the Board

Introduction

The legal and administrative information set out below forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the Statement of Recommended Practice for Social Housing Providers 2018 (FRS 102) and the Accounting Direction for private registered providers of social housing in England 2019.

Reference and administrative details

The organisation is a charitable company limited by guarantee and a registered provider of social housing, incorporated on 14th January 2013, registered as a charity on 23rd May 2013 and registered as a housing association 5[th] March 2020.

The company was established under a Memorandum of Association, which established the objects and powers of the Association and is governed under its Articles of Association.

Structure Governance and Management

Governing Document

The association operates under a Memorandum and Articles of Association as incorporated on the 23[rd] May 2013 and as amended 15 May 2018.

In accordance with the SORP, the accounts of the association disclose certain payments and benefits to The Board and others, which the Board believe they have the power to make under the terms of the governing document.

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Sturts Community Trust Board Report Year Ended 31 August 2020

Charitable objects

The Association's objects are, for the public benefit, to relieve sickness, promote good health, provide social housing and/ or care to and advance the education and training of people with a disability (whether mental or physical), the young, the old, or people otherwise in need, in accordance with the principles of Dr Rudolph Steiner, particularly (without limitation) by the establishment and maintenance of intentional communities in the form of villages, residential houses, day centres, kindergartens, schools, colleges or other types of social and/or educational community, in which beneficiaries live and/or work and/or to which they otherwise resort, in community with persons providing support (known as "Co-workers").

Appointment, retirement and training of the Board

The Board, who must be members of Sturts Community Trust, are nominated by the Board of Management. The Memorandum and Articles of Association stipulate that a majority of the Board must be external members who are not co-workers or otherwise resident in one of the Trust communities. Employees are not eligible to be Board members.

The Board retire by rotation after three years of service but may offer themselves for reappointment at the annual meeting of the members of the association.

An induction pack is provided for all Board members and specialist training is carried out on topics such as governance, from time to time as required. The pay of key management personnel is reviewed annually at the time the annual budget is being considered, and the factors taken into account are inflation, comparable pay levels and most importantly the association’s ability to pay.

Members

Members of the Sturts Community Trust contribute an amount not exceeding £1 to the assets of the association in the event of winding up. There are currently 15 members of the Trust. Membership of the Trust confers certain rights with respect to general meetings of the Trust including the right to vote at such meetings.

Governance of the Association

The Board recognise their ultimate responsibility for directing the affairs of the Trust, and for ensuring that it is solvent, well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up.

The Board meet together at least quarterly to review reports from the activities of the association and to discuss matters which are retained by the Board such as the strategic direction of the Trust, governance issues and financial oversight.

Risk management

The Board have established a process for reviewing the key risks facing the Trust and for ensuring that actions are taken to manage those risks. A detailed annual risk assessment exercise is carried out by each activity and the results of these are reported to the Board. The Board have given consideration to the major risks to which the association is exposed, as set out in these reports, and are satisfied that systems and procedures are in place to manage those risks or that action is being taken to establish such systems and procedures.

Principal risks and uncertainties

The board examines the major risks that the association faces each financial year when preparing and updating the budget. The principal risks identified are:

The association has developed systems to monitor and control these risks and to mitigate any impact that they may have on the association in the future.

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Sturts Community Trust Board Report Year Ended 31 August 2020

Reserves Policy

The Board have considered the financial position of the association and what reserves are necessary to safeguard the viability of the association's operations in the future. The operational effect of the covid pandemic is explained in the later sections of this report and as explained in the going concern accounting policy on page 22 the board have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements and consider these to be sufficient for the association to be able to continue as a going concern.

The Board have set aside sums to cover specific risks and known costs that will arise in the future. The properties were transferred at fair values and are essential for our operations but the capital they represent is not available to spend. The Board have also set aside sums towards meeting the retirement needs and the planned social activities of the Co-workers. These sums have been set aside to designated reserves as shown in Note 18, "Reserves".

This leaves us with a surplus of £135,761 in free reserves at the year end. The current policy of the Trust is to ensure that free reserves and the ability to realise cash quickly from our fixed assets are sufficient to cover three months' expenditure in the event of any major financial issue. The free reserves at the end of the financial year represent under 1 month’s expenditure and there is currently the potential to offer fixed assets as collateral should the need arise to raise funding at short notice. The intention is to build up free reserves for the future and the Board are considering what actions are required to increase funding so as to meet this objective.

Public Benefit

The Board have given due regard to public benefit when planning the association's activities, in accordance with Charity Commission guidance on public benefit.

This report sets out our activities, achievements and performance during the year, which are directly related to the objects and purposes for which the association exists. The association achieves its principal objects and purposes through the provision of supported accommodation and personal care to people with a learning disability and the activity of running a bio-dynamic farm. It does this within the context of an inclusive co-housing community. The association is committed to training in the above fields. The community runs community events for the local population and supports a local allotment society. These benefits are directly related to the aims of the association and are fully compliant with the Charity Commission Principles on Public Benefit.

Volunteers

The Cohousing Community volunteer their time in building the community involvement. Activities include celebrations, festivals and plays, community shared meals and the maintenance of land and buildings. They also include events organised for the local community including, support for the allotments, hosting West Moors Fun Day and an annual Barn Dance.

Each co-tenant volunteers approximately 4 hours per week towards community benefit. This amounts to approximately 5,500 hours a year. Supported co-tenants (beneficiaries) also offer their time alongside volunteers and the benefit therefore to the local community significantly exceeds the above figure.

Sturts Farm was started in 1982 by a group of people with the aim of working with adults with learning difficulties (called companions) to supply the other activities of the Sheiling Trust with biodynamically produced food from a working farm. Sturts Farm currently supports 25 adults with learning difficulties, many of whom have lived at the farm for many years, with a team of support workers, a mix of vocational co-workers, short-term volunteers and employees.

In the year 2013, Sturts Farm Community achieved its goal by becoming fully compliant and devolving from the Sheiling Trust to become Sturts Community Trust, an independent charitable trust on 31[st] August 2013.

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Sturts Community Trust Board Report Year Ended 31 August 2020

Vision Statement

Sturts Community Trust works in agriculture, care and support, housing, education and the arts. It aims to foster social and cultural well-being through mutual support (co-production) and community building out of respect for the uniqueness of each human being.

SCT promotes ‘citizenship’ for all those involved in its activities. It believes that personal development, participation, and the opportunity to contribute towards creating a healthy sense of belonging and purpose promotes well-being both in the individual and within the organisation.

Intention

Our intention is to create a welcoming, lively, social and cultural centre linking with West Moors in Dorset, to enable local people to take part; whether that be through working, volunteering, growing food, attending events, sharing in social/cultural events, or indeed receiving support.

Annual Report 2019-2020

Sturts Community Trust is fast becoming a thriving and valued community, a place for food, celebrations and experiences of inclusion. As a result of this it is linking to increasing numbers of people who appreciate what it does for the local community. As issues of sustainability increase in the national and global community, this small farming community is living up to the original impulse of the Camphill Movement by being a symbol of hope in caring for both people and the planet. Reported surplus for 2019/20 is £428,180. This surplus figure includes reallocation of £240,000 grant Income included within restricted funds specifically for the Twin Oaks property development. The Board wish to highlight that these grants have been fully discharged on Twin Oaks as capital spend and are not available as a revenue item.

This Report takes into account the seismic shift in the organisation of Community life; delivery of care, and the activities of our social enterprise due to Covid-19 outbreak.

On 7[th] March 2020, the Community made an early decision to ‘shut down’ with immediate effect a week before the Prime Minister’s public announcement to the country of a national lockdown.

It is difficult to explain/ articulate the impact of such a decision given the long-standing and established activities, routines and social relationships, especially as so many of the people the association support rely so heavily on all of these. Sturts Community Trust is blessed to have experienced nursing staff on its team who were able to act fast in implementing the high level infection control measures needed.

‘Chains of Trust’ were established between all members of Sturts Community Trust, and members’ dedication in upholding these in both their personal and professional life has formed stronger bonds which have resulted in an even stronger joint sense of purpose. The flexibility and commitment of our support staff have been unquestionable throughout this period.

There have been many blessings during this difficult time. The forming of set households with set teams allocated to specific areas/ tasks on the farm created consistency for everyone, which has resulted in a renewed commitment and understanding of the therapeutic value of the farming process. Everyone relished being outside, connecting to nature. Much has been written about how nature responded to lockdown and how people responded to nature - Sturts Farm was no exception and our whole project has benefited, as previously stated, from this renewed appreciation. Consequently, our farm has never been so well cared for, and our vegetable growing became a central focus with each team taking responsibility to oversee a specific crop. The central practice of social pedagogy, being working together for a common aim rather than merely providing a service for disabled persons, came alive again within Sturts Community Trust. Many new skills have been learnt by all involved and our companions walked tall wherever this principle was applied.

From a social care point of view, the association also witnessed a marked drop in behaviours that challenge; evidence of the fact that joint meaning and purpose, together with active support and consistency - the main therapeutic components of social pedagogy – have a direct impact on the well-being of all. Sturts Community Trust has not used any restrictive intervention during this period.

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Sturts Community Trust Board Report Year Ended 31 August 2020

In a situation which created a direct risk to health our absence levels dropped to almost zero. Evidence of, not only the commitment of our team, but also of how the above changes may have been instrumental in maintaining well-being in our support team also.

This evidence has encouraged us to further question the ‘bias’ of mainstream social work towards individualised, varied timetables of mainly leisure pursuits versus working together for the common good. Sturts Community Trust’s focus on work-based enterprise which is of value to the local community has stood out as being able to offer person-centred meaning and purpose to an individual’s life, offering an outcome of connectedness to nature and sound relationships.

The virus has focussed people’s minds on the origins of their food, on community links and sustainability. The appreciation expressed by local people towards Sturts Farm has been greatly valued and heart-warming. The pandemic has also woken up society to the needs of vulnerable people and harnessed recognition for those who work within the social care sector - who choose what is actually a highly skilled profession of establishing positive relationships with people who are supported. This support has yet to result in changes to government policy towards social care.

Highlight of Inclusion

The Farm Shop closed on the same day in March with no warning. Some of our partners questioned the early move but soon found themselves alongside us. The team immediately shifted its focus to respond to numerous local people who were unable to access online supermarket orders and started delivering food from their own cars. In that way they kept the Farm Shop trading at a level of around 60% of usual turnover.

The small Gulliver’s Café was unable to function during this period therefore the Association, following another grant from Talbot Village Trust and a DCC Small Business Grant, was able to purchase an Airstream Food Trailer from which fresh organic food was sold as a take away service. Many adaptations followed as the tier system changed. However, as time progressed, the community effort and the attraction of buying local food has meant an increase in trade and deepening of our local connections.

Although many of the internal goals detailed in the 2018-19 Annual Report were not achieved, the Community continued to move forward.

Achievements

Clover Cohousing

The Twin Oaks Project – a development of 8 residential units in an inclusive cohousing neighbourhood – was given the go ahead to start the construction phase at the very same time the restrictions were brought into effect. A bold decision was taken amid rumours of shutdowns and material shortages. Our gratitude to the funders of this project knows no bounds and the ability of the builders and project team in managing to get to August on budget and on time, during a period of such upheaval, is a testament to their commitment and skill.

The real benefit of this new building, planned for completion by May 2021, will probably only be fully realised as the Community forms and is able to move beyond current restrictions. New self-contained homes in a shared environment is an expression of the new model of community building at SCT and the completion will be the culmination of 5 years work on fundraising and design collaboration. During this period of time, the opportunity to process the change from a traditional Camphill Community and its impact on those concerned has been afforded. This is leading towards a re-envisioning of the role and purpose of the Co-housing project within Sturts Community Trust and will require the establishment of clear processes and tenancy arrangements.

The childminding service, provided for and set within the Community, has been OFSTED registered.

Social Enterprise

Sturts Community Trust was also in receipt of two further donations from a family member and Talbot Village Trust, which allowed us to purchase a specially converted Kubota tractor. A dual control conversion allows those the association support to be involved in tractor based activities for the first time in the 40 year history of Sturts

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Sturts Community Trust Board Report Year Ended 31 August 2020

Farm. As far as we know, this is the first of its kind and the Board are grateful to both those who chose to support the project and those who worked out how to undertake the conversion.

Sturts Community Trust has re-established its milking herd and is now able to sell raw milk through the Farm Shop. The grass-fed herd eats exclusively from grass or grain grown on Sturts Farm, leading to a high quality product.

With increased grain growing there is now a fully established supply of biodynamic eggs. This is the first time for 10 years that the eggs have reached this level of certification.

The association intends to complete some smaller projects which include:

However, the main focus of all our team is to continue to respond to the pandemic by keeping our infection control measures high, supporting each other as best we can, and continuing to work closely with family members in order to keep our Community safe.

When finally the association moves out of restrictions it will be time to take stock and look again to future plans.

The Board intend to form a new 5 Year Plan following the completion of Twin Oaks, which starts with looking at four further developments:

  1. Renovation of Farm Buildings.

  2. A community hub on Gulliver’s Farm.

  3. A further residential build that focuses on those with increased mobility/ care needs.

  4. A small cultural building.

Compliance with Governance and Financial Viability Standard

The Board confirms that Sturts Community Trust Housing Association complies with the requirements of the revised Governance and Financial Viability Standard applicable for the year from 1 September 2019.

The code of governance adopted is the Charity Governance code.

Value for Money in the year to 31 August 2020

The full version of the Value for Money Assessment for 2019/20 can be found on Sturts Community Trust Housing Association website from April 2021. The following is a summary of that report.

a) Financial Returns

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Sturts Community Trust Board Report Year Ended 31 August 2020

Value for Money Metrics 2020 2019
Metric 1–Reinvestment % 12.77% 2.68%
Metric 2 – New supply delivered % 0% for social
housing units
0% for non-social
housing units		 0% for social housing
units
0% for non-social
housing units
Metric 3–Gearing % 3.90% 0.64%
Metric 4 – Earnings before interest, depreciation, amortisation,
major repairs included (EBITDA MRI) Interest Cover %		 334.30% 170.07%
Metric 5–Headline social housing cost per unit £11,129 £14,424
Metric 6 – Operating Margin % 56.12% for social
housing units
19.14% total		 54.90% for social
housing units
10.30% total
Metric 7–Return on capital employed (ROCE) % 7.63% 4.23%

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Sturts Community Trust Board Report Year Ended 31 August 2020

Directors’ responsibilities

The Board is responsible for preparing the report and financial statements in accordance with applicable law and regulations.

The Companies Act 2006 and registered social housing legislation require the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the association and of its income and expenditure for that period.

In preparing these financial statements, the Board is required to:

The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the association and enable it to ensure that the financial statements comply with the Companies Act 2006 the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. It has general responsibility for taking reasonable steps to safeguard the assets of the association and to prevent and detect fraud and other irregularities.

Disclosure of information to the auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

Approved by the Board on 25 February 2021 and signed on its behalf by:.

Page 10

Sturts Community Trust Independent Auditor’s Report Year Ended 31 August 2020

Independent Auditor’s Report to the Members of Sturts Community Trust

Opinion

We have audited the financial statements of Sturts Community Trust (the group) for the year ended 31 August 2020 which comprise the group and company Statement of Comprehensive Income, group and company Balance Sheet, group and company Statement of Changes in Reserves, group Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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Sturts Community Trust Independent Auditor’s Report Year Ended 31 August 2020

Other information

The board is responsible for the other information. The other information comprises the information included in the Board Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the board report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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

Responsibilities of the board

As explained more fully in the board’s responsibilities statement set out on page 10, the board members (who are also the directors of the association for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

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Sturts Community Trust Independent Auditor’s Report Year Ended 31 August 2020

board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the board is responsible for assessing the group and company ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the association’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the association’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Johns FCA FCCA Senior Statutory Auditor For and on behalf of PKF Francis Clark Chartered Accountants and Statutory Auditors Towngate House 2 – 8 Parkstone Road Poole BH15 2PW

Date: 26 February 2021

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Sturts Community Trust Statement of Comprehensive Income (Including Income and Expenditure Account) Year Ended 31 August 2020

Note
Turnover
Cost of sales
Operating surplus / (deficit)
Gains / (losses) on investment assets
4
Total comprehensive income for the year		 Group
2020
Group
2019
Association
2020
Association
2019
Total
Total
Total
Total
£
£
£
£
2,679,126
2,612,047
2,679,126
2,612,047
(2,250,946)
(2,386,902)
(2,159,265)
(2,344,866)
428,180
225,145
519,861
267,181
278
417
278
417
428,458
225,562
520,139
267,598

The income and expenditure account has been prepared on the basis that all operations are continuing operations.

The income and expenditure account was approved on 25 February 2021 and signed on behalf of the board by:

The notes on pages 18 to 32 form part of these accounts.

Page 14

Sturts Community Trust Balance Sheet Year Ended 31 August 2020

Company registration number: 08359958

Note
Fixed assets
Tangible fixed assets
9,10
Investments
11
Current assets
Stocks
Debtors
12
Investments
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets / (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Total net assets / (liabilities)
Reserves
Unrestricted funds
18
Restricted funds
18
Total Reserves		 Group
2020
Group
2019
£
£
6,291,499
5,763,746
7,900
7,800		 Association
2020
Association
2019
£
£
6,291,499
5,763,746
7,900
7,800
6,299,399
5,771,546
54,107
67,931
154,192
171,379
809
631
359,901
506,291		 6,299,399
5,771,546
54,107
67,931
287,910
213,415
809
631
359,900
506,291
569,009
746,232
(184,074)
(230,261)		 702,726
788,268
(184,074)
(230,261)
384,935
515,971		 518,652
558,007
6,684,334
6,287,517
(477,424)
(509,065)		 6,818,051
6,329,553
(477,424)
(509,065)
6,206,910
5,778,452		 6,340,627
5,820,488
5,923,665
5,778,452
283,245
-		 6,057,382
5,820,488
283,245
-
6,206,910
5,778,452		 6,340,627
5,820,488

The financial statements were approved and authorised for issue by the Board on 25 February 2021 and signed on behalf of the board by

The notes on pages 18 to 32 form part of these accounts.

Page 15

Sturts Community Trust Statement of Changes in Reserves Year Ended 31 August 2020

Group
At 1 September 2018
Surplus / (deficit) for the
year
Total comprehensive
income
At 31 August and 1
September 2019
Surplus / (deficit) for the
year
Total comprehensive
income
At31 August 2020
Association
At 1 September 2018
Surplus / (deficit) for the
year
Total comprehensive
income
At 31 August and 1
September 2019
Surplus / (deficit) for the
year
Total comprehensive
income
At31 August 2020		 General
unrestricted
fund
£
(3,165)
(3,161)
Revaluation
unrestricted
fund
£
730,151
-
-
730,151
-
-
730,151
Revaluation
unrestricted
fund
£
730,151
-
-
730,151
-
-
730,151		 Restricted
fund
£
-
-
-
-
283,245
283,245
283,245
Restricted
fund
£
-
-
-
-
283,245
283,245
283,245
 Designated
unrestricted
fund
£
4,825,904
228,723
228,723
5,054,627
136,843
136,843		 Total
£
5,552,890
225,562
(3,161) 225,562
(6,326)
8,370		 5,778,452
428,458
8,370
2,044
General
unrestricted
fund
£
(3,165)
38,875		 428,458
6,206,910
Total
£
5,552,890
267,598
267,598
5,820,488
520,139
520,139
6,340,627
5,191,470
Designated
unrestricted
fund
£
4,825,904

228,723
228,723
5,054,627
136,843
136,843
5,191,470
38,875
35,710
100,051
100,051
135,761

The notes on pages 18 to 32 form part of these accounts.

Page 16

Sturts Community Trust Statement of Cash Flows Year Ended 31 August 2020

Note
Cash flow from operating activities
19
Net cash flow from operating activities
Cash flow from investing activities
Purchase of tangible fixed assets
Receipts from sale of tangible fixed assets
Interest receivable and similar income
Net cash flow from investing activities
Cash flow from financing activities
Repayment of loans and borrowings
Interest payable and similar charges
Net cash flow from financing activities
Net increase / (decrease) in cash and
cash equivalents
Cash and cash equivalents at 1
September 2019
Cash and cash equivalents at 31 August
2020
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 August
2020		 Group
Group
2020
2019
£
£
438,183
255,469
438,183
255,469
(564,823)
(148,421)
9,500
-
305
976
(555,018)
(147,445)
(11,823)
(6,876)
(17,732)
(20,649)
(29,555)
(27,525)
(146,390)
80,499
506,291
425,792
359,901
506,291
359,901
506,291
359,901
506,291

The notes on pages 18 to 32 form part of these accounts.

Page 17

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

1 Summary of significant accounting policies

(a) General information and basis of preparation

Sturts Community Trust is a private registered provider of social housing in the United Kingdom. The address of the registered office is given in the registered provider information on page 1 of these financial statements. The nature of the registered provider’s operations and principal activities are, for the public benefit, to relieve sickness, promote good health, provide social housing and/or care to and advance the education and training of people with a disability (whether mental or physical), the young, the old, or people otherwise in need, in accordance with the principles of Dr Rudolph Steiner, particularly (without limitation) by the establishment and maintenance of intentional communities in the form of villages, residential houses, day centres, kindergartens, schools, colleges or other types of social and/or educational community, in which beneficiaries live and/or work and/or to which they otherwise resort, in community with persons providing support (known as “Co-workers”).

The registered provider constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the registered provider, and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Group accounts

The registered provider is required by the Companies Act 2006 to prepare group accounts. The consolidated accounts comprise the financial statements of Sturts Community Trust, and of its subsidiary Twin Oaks (Co-Housing) Construction Ltd (registered company no 12040819).

(c) Tangible fixed assets

Individual fixed assets costing £1,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Properties are held at fair value. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

(d) Depreciation and amortisation

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Tools and equipment 20% reducing balance Furniture and fittings 20% reducing balance Motor vehicles 20% reducing balance

Assets under construction are not depreciated until they are in use.

Page 18

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

(e) Impairment

All fixed assets are considered for impairment annually and detailed reviews of assets for impairment are carried out if there is an indication that impairment has occurred or if they are not being depreciated.

(f) Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

(g) Current asset investments

Current asset investments are included at the lower of cost and net realisable value / market value.

(h) Stocks

Stock consists of livestock, processed meat, other farm produce, and bought farm shop stock. Livestock, meat and produce are valued at estimated sales value less estimated cost to sell. Estimates are based upon published price lists from local markets and national websites, along with local knowledge and experience.

Shop stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out method (FIFO).

(i) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.

Rights of social landlords to have improvement works carried out to properties by a third party (such as a local authority) are recognised as prepayments where payment has occurred in advance of the works being carried out and receipts in advance from the same third party recognised as liabilities. Assets and liabilities or income and expenditure are not offset.

(j) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

(k) Loans and borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Page 19

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

Borrowings are classified as current liabilities unless the association has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(l) Leases

Rentals payable and receivable under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease.

(m) Tax

The activities of the registered provider are partially exempt from VAT.

The Association is registered for VAT and is able to recover VAT on a proportion of its purchases. VAT incurred on purchases which is not recoverable is included along with the expense to which it relates, or the item acquired, in the income and expenditure account or balance sheet respectively.

(n) Turnover and other income

Turnover represents income from the various activities undertaken by the group. All income is recognised once the association has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations are recognised when the association has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the association before the association is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the association and it is probable that these conditions will be fulfilled in the reporting period.

Grants are recognised when the association has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Social housing grant (SHG) is recognised when receivable. Where developments have been financed wholly or partly by SHG, the SHG is recognised as income. Housing association grants are included under SHG headings. If housing properties are disposed of, social housing grants are repayable to the Homes & Communities Agency (HCA) or subject to restrictions on use and included within creditors as part of a “Recycled Capital Grant Fund” under most circumstances.

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:

Trading income is recognised as earned (that is, as the related goods or services are provided).

Investment income is recognised on a receivable basis.

Income from charitable and social housing activities is recognised as earned (as the related goods or services are provided) under contract.

Other income is recognised on a receivable basis.

Page 20

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

(o) Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable expenditure comprises those costs incurred by the association in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

These include the costs attributable to the association’s compliance with constitutional and statutory requirements, including audit, strategic management and board meetings and reimbursed expenses.

(p) Pensions and other post retirement obligations

The association operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

(q) Reserves

Restricted reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body. Restricted reserves include funds raised in response to a specific appeal. Revenue and expenditure cannot be directly set against restricted reserves but is taken through the statement of comprehensive income and then a transfer to / from restricted reserves is made as appropriate.

Unrestricted general reserve – these funds can be used in accordance with the objectives of the Association at the discretion of the board.

Designated reserves are part of unrestricted reserves which have been designated by the Board for a particular purpose. Such designations may be reversed by future Board decisions.

Details of reserves are shown in note 18.

Page 21

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

(r) Going concern

The financial statements have been prepared on a going concern basis. As explained in the annual report the board have considered the uncertainty relating to the coronavirus pandemic which occurred during the year end and the impact on the association’s operations and finances in the short to medium term. In the opinion of the board, with the support of the Coronavirus Job Retention Scheme, coronavirus grant funding and proactively managing cash-flow the association has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis. The board have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves held and the additional coronavirus funding received for the association to be able to continue as a going concern.

2 Turnover, cost of sales, administrative expenditure and operating surplus / (deficit)

The group has not provided information required by part 1 of the Accounting Direction for Social Housing in England 2019 on the grounds that it is small.

3

Social housing turnover and costs Group and Association Group and Association
2020 2019
£ £
Rents receivable excluding service charges 332,200 335,327
Service charges receivable 145,230 146,597
Revenue grants receivable 26,997 14,795
Capital grants receivable 283,245 107,000
Social housing activity expenditure 278,230 360,592
Operating surplus / (deficit) from social housing activities 536,890 570,490
Net surplus / (deficit) from social housing activities 182,820 161,069
Void losses - -

Accommodation owned

ccommodation owned
Completed units:
-
Social Housing		 Group and Association
Number of
units at
31 August
2020
Number of
units at
31 August 2019
25
25

25
25
25

Page 22

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

4 Gains on investment assets – Group and Association

Gains on revaluation of investments 2020
£
278
278		 2019
£
417
417

5 Surplus / (deficit) on ordinary activities

Surplus / (deficit) on ordinary activities is stated after charging / (crediting):

Group
Group		 Association Association
2020 2019 2020 2019
£ £ £ £
Auditor’s remuneration (including expenses and
benefits in kind) for audit 10,568
12,164		 10,568 12,164
(Profit)/loss on disposal of tangible fixed assets (7,224)
1,531		 (7,224) 1,531
(Gain)/loss on revaluation of investments 278
417		 278 417
Depreciation of fixed assets 34,794
39,270		 34,794 39,270

6 Auditor’s remuneration

Fees payable to the Registered Provider’s auditor for
the audit of the Registered Provider’s annual
accounts
Fees payable to the Registered Provider’s auditor for
services other than those of external audit:		 Group
2020
Group
2019		 Association
2020
Association
2019
£
£		 £
£
10,568
12,164		 10,568
12,164
3,684
5,378		 3,684
5,378
14,252
17,542		 14,252
17,542

7 Board and key management personnel remuneration – Group and Association

The total remuneration for key management personnel amounted to £44k (2019 - £44k).

Page 23

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

8 Staff costs – Group and Association

The average number of employees, including members of the executive team, calculated on a full time equivalent was 41.81 employees (2019 – 45.83).

The aggregate remuneration of such employees was as follows:

he aggregate remuneration of such employees was as follows:
Wages and salaries
Social security costs
Pension costs		 2020
£

830,039
51,712
13,172
894,923		 2019
£
856,092
53,666
10,799
920,557

9 Tangible fixed assets – housing properties – Group and Association

Cost:
At 1 September 2019
Additions
At 31 August 2020
Net book value:
At 31 August 2020
At 31 August 2019		 Land and
buildings
Assets
under
construction
£
£
3,048,207
48,583
11,933
453,200		 Total
£
3,096,790
465,133
3,060,140
501,783		 3,561,923
3,060,140
501,783		 3,561,923
3,048,207
48,583		 3,096,790

The net book value of land and buildings comprised:

Land and buildings:
Freehold		 2020
£
3,561,923
3,561,923		 2019
£
3,096,790
3,096,790

Page 24

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

10 Tangible fixed assets – other – Group and Association

Cost or valuation:
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation:
At 1 September 2019
Charge for the year
Eliminated on disposals
At 31 August 2020
Net book value:
At 31 August 2020
At 31 August 2019
Total fixed assets:
Housing properties
Other		 Land and
buildings
Furniture
and fittings
Motor
vehicles
£
£
£
2,561,614
175,984
21,442
10,451
4,955
46,070
-
-(15,569)		 Tools and
equipmen
t
Total
£
£
37,159
2,796,199
38,214
99,690
(2,861)
(18,430)
72,512
2,877,459
14,999
129,243
5,860
34,794
(636)
(16,154)
20,223
147,883
52,289
2,729,576
22,160
2,666,956
2020
2019
£
£
3,561,923
3,096,790
2,729,576
2,666,956
6,291,499
5,763,746		 Tools and
equipmen
t
Total
£
£
37,159
2,796,199
38,214
99,690
(2,861)
(18,430)
72,512
2,877,459
14,999
129,243
5,860
34,794
(636)
(16,154)
20,223
147,883
52,289
2,729,576
22,160
2,666,956
2020
2019
£
£
3,561,923
3,096,790
2,729,576
2,666,956
6,291,499
5,763,746		 Tools and
equipmen
t
Total
£
£
37,159
2,796,199
38,214
99,690
(2,861)
(18,430)
72,512
2,877,459
14,999
129,243
5,860
34,794
(636)
(16,154)
20,223
147,883
52,289
2,729,576
22,160
2,666,956
2020
2019
£
£
3,561,923
3,096,790
2,729,576
2,666,956
6,291,499
5,763,746
2,572,065
180,939
51,943
-
102,803
11,441
-
20,680
8,254
-
-(15,518)
-
123,483
4,177
2,572,065
57,456
47,766
2,561,614
73,181
10,001
2020
£
3,561,923
2,729,576
6,291,499
5,763,746

11 Fixed asset investments – Group and Association

Cost or valuation
At 1 September 2019
Revaluation
At 31 August 2020
Carrying amount:
At 31 August 2020
At 31 August 2019		 Unlisted
investments
Total
£
£
7,800
7,800
100
100
7,900
7,900
7,900
7,900
7,800
7,800

Page 25

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

12 Debtors

Trade debtors
Prepayments
Accrued income
Other debtors
VAT recoverable
Amount owed by subsidiary		 Group
Group
Association
Association
2020
2019
2020
2019
£
£
£
£
116,132
130,129
116,132
130,129
-
5,469
-
5,469
17,750
15,657
17,750
15,657
11,498
20,124
11,498
20,124
8,812
-
8,812
-
-
-
133,718
42,036
154,192
171,379
287,910
213,415

13 Current asset investments – Group and Association

Listed investments 2020
£
809
809		 2019
£
631
631

14 Creditors: amounts falling due within one year – Group and Association

Bank loans
Trade creditors
Other loans
Other taxation and social security
Other creditors
Accruals
Deferred income		 2020
2019
£
£
29,046
26,960
42,372
64,137
2,000
2,000
15,665
16,465
65,220
58,538
17,400
22,672
12,371
39,489
184,074
230,261

15 Creditors: amounts falling due after more than one year – Group and Association

Bank loans
Other loans		 2020
£
469,424
8,000
477,424		 2019
£
499,065
10,000
509,065

Page 26

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

Bank loans are secured with fixed and floating charges against the freehold property of the housing association.

16 Leases

Operating leases - lessee

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years		 2020
£
49,586
12,054
61,640		 2019
£
52,441
22,108
74,549

17 Pension and other schemes

The housing association operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the housing association to the scheme and amounted to £13,172 (2019 - £10,799).

Contributions totalling £3,123 (2019 - £nil) were payable to the scheme at the year end and are included within other creditors.

Page 27

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

18 Reserves

Reconciliation of movement in funds Group

Unrestricted Funds
Unrestricted income fund
Designated funds:
Co-worker benevolent fund
Co-worked social fund
Property capital and revaluation fund
Property development fund
Restricted Funds
Tractor fund
Thresher fund
Twin Oaks development fund		 Brought
Forward
01/09/2019
Income
Expenditure
Transfers
Other
Recognised
Gains/ (Losses)
Carried
Forward
31/08/2020
£
£
£
£
£
£
(6,326) 2,395,881
(2,230,660)
(157,129)
278
2,044
379,511
-
-
40,958
-
420,469
47,145
-
(20,286)
14,775
-
41,634
5,294,122
-
-
101,396
-
5,395,518
64,000
-
-
-
-
64,000
5,784,778
-
(20,286)
157,129
-
5,921,621
-
38,660
-
-
-
38,660
-
4,585
-
-
-
4,585
-
240,000
-
-
-
240,000
-
283,245
-
-
-
283,245
5,778,452
2,679,126
(2,250,946)
-
278
6,206,910

The specific purposes for which the funds are to be applied are as follows:

Co-worker benevolent fund - This is a fund created to contribute towards meeting the retirement needs of the Co-workers. The Camphill Communities have created a benevolent fund for retired Co-workers, which the Trust has joined and contributes to.

Co-worker social fund - This is a fund created to contribute towards planned social activities for the Co-workers.

Page 28

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

Property capital fund - This fund has been created to reflect, together with the revaluation reserve, the value of land and buildings held by the Trust, net of any bank loans and property related loans outstanding at the balance sheet date.

Property development fund - This is a fund created to set aside funds for the building of new Trust properties.

Tractor fund, thresher fund and Twin Oaks development fund are restricted funds received for the purchase and construction of fixed assets.

Unrestricted Funds
Unrestricted income fund
Designated funds:
Co-worker benevolent fund
Co-worked social fund
Property renewals fund
Property capital and revaluation fund
Property development fund		 Brought
Forward
01/09/2018
Income
Expenditure
Transfers
Other
Recognised
Gains/ (Losses)
Carried
Forward
31/08/2019
£
£
£
£
£
£
(3,165) 2,612,047
(2,356,670)
(258,955)
417
(6,326)
326,870
-
-
52,641
-
379,511
54,995
-
(30,232)
22,382
-
47,145
21,205
-
-
(21,205)
-
4,977,985
-
-
316,137
-
5,294,122
175,000
-
-
(111,000)
-
64,000
5,556,055
-
(30,232)
258,955
-
5,784,778
5,552,890
2,612,047
(2,386,902)
-
417
5,778,452

Page 29

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

Reconciliation of movement in funds Accociation

Unrestricted Funds
Unrestricted income fund
Designated funds:
Co-worker benevolent fund
Co-worked social fund
Property capital and revaluation fund
Property development fund
Restricted Funds
Tractor fund
Thresher fund
Twin Oaks development fund		 Brought
Forward
01/09/2019
Income
Expenditure
Transfers
Other
Recognised
Gains/ (Losses)
Carried
Forward
31/08/2020
£
£
£
£
£
£
35,710
2,395,881
(2,138,979)
(157,129)
278
135,761
379,511
-
-
40,958
420,469
47,145
-
(20,286)
14,775
41,634
5,294,122
-
-
101,396
5,395,518
64,000
-
-
-
64,000
5,784,778
-
(2,159,265)
157,129
5,921,621
-
38,660
-
-
-
38,660
-
4,585
-
-
-
4,585
-
240,000
-
-
-
240,000
-
283,245
-
283,245
5,820,488
2,679,126
(2,159,265)
6,340,627

Page 30

Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

Unrestricted Funds
Unrestricted income fund
Designated funds:
Co-worker benevolent fund
Co-worked social fund
Property renewals fund
Property capital and revaluation fund
Property development fund		 Brought
Forward
01/09/2018
Income
Expenditure
Transfers
Other
Recognised
Gains/ (Losses)
Carried
Forward
31/08/2019
£
£
£
£
£
£
(3,165) 2,612,047
(2,314,634)
(258,955)
417
35,710
326,870
-
-
52,641
-
379,511
54,995
-
(30,232)
22,382
-
47,145
21,205
-
-
(21,205)
-
4,977,985
-
-
316,137
-
5,294,122
175,000
-
-
(111,000)
-
64,000
5,556,055
-
(30,232)
258,955
-
5,784,778
5,552,890
2,612,047
(2,344,866)
-
417
5,820,488

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Sturts Community Trust Notes to the Financial Statements Year Ended 31 August 2020

19 Reconciliation of operating surplus / (deficit) to cash flow from operating activities

Surplus / (deficit) for the year
Depreciation
Investment income
(Gains) on investments
(Profit)/loss on disposal of tangible fixed assets
Decrease in stocks
Decrease/(Increase) in debtors
(Decrease) in creditors
(Decrease)/Increase in deferred income
Net cash flow from operating activities		 Group
Group
2020
2019
£
£
428,458
225,562
34,794
39,270
(305)
(1,085)
(278)
(417)
(7,224)
1,531
13,824
2,311
17,187
(48,095)
(21,155)
(3,097)
(27,118)
39,489
438,183
255,469

20 Related party transactions – Group and Association

During the year the Trust made the following related party transactions:

Signpost HR Solutions

(A company in which C Darby-Jenkins, a member of the Board of the housing association, is a director and shareholder)

Fees for HR services were charged to the housing association during the year totalling £2,898 (2019 - £2,376). At the balance sheet date the amount due to/from Signpost HR Solutions was £Nil (2019 - £Nil).

KT People Solutions Ltd

(A company in which K Jones, a member of the Board of the housing association, is a director and shareholder)

Fees for mentoring sessions were charged to the housing association during the year totalling £1,000 (2019 - £1,920). At the balance sheet date the amount due to/from KT People Solutions Ltd was £Nil (2019 - £Nil).

Twin Oaks (Co-Housing) Construction Limited

(Subsidiary)

T Cook, a member of the Board of the housing association, provided services as a sole trader. Fees relating to the refurbishment of buildings were charged to the housing association during the year totalling £6,500 (2019 - £Nil).

Purchases made on behalf of Twin Oaks (Co-Housing) Construction Limited amounted to £91,682 (2019 - £42,036). At the balance sheet date the amount due from Twin Oaks (Co-Housing) Construction Limited was £133,718 (2019 - £42,036).

Related beneficiaries

During the year four beneficiaries of the charity services were related to members of the Board. The transactions were made on terms equivalent to those that prevail in an arms length transaction.

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