REGISTERED COMPANY NUMBER: 07914471 (England and Wales) REGISTERED CHARITY NUMBER: 1155069 Report of the Trustees and Unaudited Financial Statements for the Year Ended 5 April 2024 for Sutton Turner Houses Mellor Oxland LLP Hine House 25 Regent Street Nottingham Nottinghamshire NG15BS
Sutton Turner Houses Contents of the Financial Statements for the Year Ended 5 April 2024 Page Report of the Trustees Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements 9 to 15 Detailed Statement of Financial Activities 16 to 17
Sutton Turner Houses Report of the Trustees for the Year Ended 5 April 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 5 April 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims The charity's principal objective during the year was to provide low cost accommodation to people of limited financial means, who are of good character, and of not less than 60 years of age, who reside in the City of Derby. Slgniflcant activities The charity was created by the generosity of the late Annie Sutton who passed away in 1913. In her Will she bequeathed property and money for the purpose of providing Almshouses for the poor and elderly. Following the merger with the Turner Almshouses, the charity now owns and operates 33 Almshouses through which it achieves its objectives. These comprise of 12 two bedroom bungalows at Windmill Hill, Derby, and a further 3 two bedroom and 10 single bedroom bungalows located at Sutton Close, Dert)y. In addition, the propety that was transferred as part of the merger includes a further 4 bungalows and 4 houses at Ashbourne Road, Derby. The Almshouses are unfurnished dwellings, usually designed with the needs of older, independent people in mind. The aim is to provide convenient and comfortable accommodation, and residents are allowed to come and go as they please. The Almshouses each have a community call system installed, to allow residents to call for urgent assistance if required. Public beneflt The Trustees have had regard to the Charities Commission guidance on public benefit. The charity is of benefit to those with limited financial means, specifically those of not less than 60 years of age. It therefore satisfies the benefit aspect of the requirements, and is not required to meet the public aspect as it assists in relieving or preventing poverty. ACHIEVEMENT AND PERFORMANCE Charitable activities The charity's principal alm during the year was to provide accommodation to elderly peoplé In the City of Derby who are of limited financial means. The charity has also undertaken statutory compliance checks, health and safety risk assessments, as well as producing detailed information on the current condition of the housing stock. This enables the charity to draw up a planned maintenance programme, which allows the Trustees to plan medium and long term objectives for maintenance work and the associated financial requirements. The charity is also continuing to improve methods of communication with residents, having created a new website, made further updates to the residents, handbook and continued regular visits to the residents by the Trustees. Page 1
Sutton Turner Houses Report of the Trustees for the Year Ended 5 April 2024 ACHIEVEMENT AND PERFORMANCE Fundraising activities The charity continued to receive rna1ntenan contributions from residents, with very few void periods. The quoted investments held by the Trustees are now managed by Abrdn (previously Rathbones Investment Management) and are considered to have performed satisfactorily. with realised losses totalling £865 (2023 £6,892 gains) arising on disposals, and an income return of £2,533 (2023 £7,688). FINANCIAL REVIEW Financial position During the year the charity continued its policy of upgrading the existing property portfolio. The charity has rnoved the investment portfolio to Abrdn from Rathbones Investment Management in the year and the holding is on a scale similar to the previous year. At the year end the properties including various components and fixtures & fittings had a written down value of £1,082,018 (2023 £1,116,098), fixed asset investments with a value of £280,126 (2023 £287,941) and cash of £12,874 (2023 £20,212). The freehold land and buildings were valued on 30 October 2017 by Gadsby Nicols at £3,475,000 on an open market basis. Principal funding sources The charity's principal source of funding is the weekly maintenance contributions received from its residents. Investment pollcy and objectives Subject to some funds being held in cash to meet more immediate requirements, the reserves are invested with the aim of producing a return above inflation and are measured on a total return basis. The invested funds are managed by an investment advisor on a cautious basis. Reserves policy The Trustees review the reserves policy on an annual basis. The charity has set aside funds for regular maintenance and repair costs to ensure that the Almshouses are maintained in accordance with the standard required under the Government's Decent Homes Standard as applicable to Social Housing. Their current policy is detailed in Note 12 of the accounts. Going concern There are no material uncertainties about the charity's ability to continue. FUTURE PLANS The Trustees main aims for the future are to ensure the continued operation of the charity whilst maintaining the Almshouses to a high standard. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Page 2
Sutton Turner Houses Report of the Trustees for the Year Ended 5 April 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees The Charity is governed by a Board of Trustees and co-opted Trustees as required under the trust deed. The Trustees provide their services on a voluntary basis. Recruitment to the Board of Trustees is by application from those expressing an interest. giving details of their reasons, skills and experience. Candidates are interviewed by the Board of Trustees and if appropriate are appointed by a vote of the Board. Each Trustee is provided with guidance on the role. Organisational structure The trust deed provides for a maximum of eight Trustees, the board of Trustees is now wholly co-opted with Derby City Council no longer having rights of nomination. The Trustees are collectively responsible for decision making within the charity. Decisions on the running of the charity are made, and risks faced by the charity discussed, at regular Trustee meetings. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 07914471 (England and Wales) Registered Charity number 1155069 Registered office Sterne House Lodge Lane Derby DE13WD Trustees ISBeck D G Poynton B J Thorpe (Chairman) D L Spademan (Deputy Chairman) J A Carter A Smith Independent Examiner Mellor Oxland LLP Hine House 25 Regent Street Nottingham Nottinghamshire NG15BS Page 3
Sutton Turner Houses Report of the Trustees for the Yaar Ended 5 April 2024 REFERENCE AND ADMINISTRATIVE DETAILS Solicitors Nelsons Sterne House Lodge Lane Derby DE13WD Clerk to Trustaas G Neville Approved by order of the board of trustees on behalf by: and signed on its BJThor (Chairman) - Page 4
Independent Examinerfs Report to the Trustees of Sutton Turner Houses Independent Oxamlner's report to the trustees of Sutton Turner Houses Cth8 Company,) I report to the charity trustees on my examination of the accounts of the Company for the year ended 5 April 2024. Responslbilltles and basls of roport As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 {'the 2006 ACV). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 (Ihe 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. Independent examlnerfs Statement I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: accounting reGords were not kept in respect of the Company as required by Section 386 of the 2006 Act; or the accounts do not accord with those records," or the accounts do not comply with the accounting requlrements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination", or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn In this report in order to enable a proper understsnding of the accounts to be reached. D L Caine Mellor Oxland LLP Hine House 25 Regent Street Nottingharn Nottinghamshire NG15BS Page 5
Sutton Turner Houses Statement of Financial Activltles for the Year Ended 5 April 2024 2024 Total funds 2023 Total funds Unrestricted Restricted funds funds Notes INCOME AND ENDOWMENTS FROM Charltable activities Provision of accommodation to people of limited financial means & elderly people of the City of Derby 155,504 155,504 144,385 Investment income 3,235 3,235 7,875 Total 158,739 158,739 152,260 EXPENDITURE ON Charltable activltles Provision of accommodation to people of limited financial means & elderly people of the City of Derby 140,127 5.036 140,127 5,036 182,417 4,987 Raising funds Other 101,190 101,190 (31,914) Total 246,353 246,353 155,490 Net gainsl{losses) on investments 20,289 20,289 (25,668) NET INCOMEI(EXPENDITURE) (67,325) (67,325> (28,898) RECONCILIATION OF FUNDS Totsl funds brought fopward 1,445,423 1,445,423 1,474,321 TOTAL FUNDS CARRIED FORWARD 1,378,098 1,378.098 1,445,423 The notes form part of these financial statements Page 6
Sutton Turner Houses (Reglstered number: 07914471) Balance Sheet 5 Aprll 2024 2024 Total funds 2023 Total funds Unrestricted Restricted funds funds Notes FIXED ASSETS Tangible assets Investments 1,082,018 280,126 1,082,018 1,116,098 280,126 287,941 1,362,144 1,362,144 1,404,039 CURRENT ASSETS Debtors Prepayments and accrued income Cash at bank and in hand 10 1.676 4,237 38,967 7,399 12,899 7,399 12,899 20,298 20,298 44.880 CREDITORS Amounts falling due within one year 11 (4,344> (4,344) (3,496) NET CURRENT ASSETS 15,954 15,954 41,384 TOTAL ASSETS LESS CURRENT LIABILITIES 1,378,098 1,378,098 1,445,423 NET ASSETS 1,378,098 1,378,098 1,445,423 FUNDS Unrestricted funds 12 1,378,098 1,445,423 TOTAL FUNDS 1,378,098 1,445,423 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 5 April 2024. The members have not required the company to obtain an audit of its financial statements for the year ended 5 April 2024 in accordan with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and (b) preparing financial statements which give a true and fair view of the state of affairs of the charitsble company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The notes fomi part of these financial statements Page 7 continued...
Sutton Turner Houses (Reglstered number: 07914471) Balance Sheet - continued 5 April 2024 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on . and were signed on its behalf by: J Thor (Chair rustee D L Spademan (Deputy Chairman) - Trustee The notes form part of these financial statements Page 8
Sutton Turner Houses Notes to the Financial Statements for the Year Ended 5 April 2024 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows: Freehold propety - 2 % on cost Building components - at varying rates on cost Fixtures and fittings 20 /0 on cost Housing properties are principally properties available for occupation and are stated at cost less any provision for impairment (representing a diminution in the recoverable service potential of the asset below its carying value in the balance sheet) less deprecialion. Cost includes the cost of acquiring land and buildings, and expenditure incurred in respect of improvements. Improvements are works to existing properties which result in the net management charges being maintained or enhanced, by a reduction in ongoing maintenance costs or a significant extension of the economic life of the property. Major components of housing properties, such as kitchens, bathrooms, windows and central heating systems have been accounted for and depreciated separately from the housing property itself, over their expected economic lives. Taxation The charity is exempt from corporation tax on its charitable activities. Page 9 continued...
Sutton Turner Houses Notes to the Financial Statements - continued for the Year Ended 5 April 2024 ACCOUNTING POLICIES - continued Fund accounting General reserves are unrestricted funds which can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. INVESTMENT INCOME 2024 2023 Investment dividends received Deposit account interest Investment interest received 1,825 702 708 3,622 187 4,066 3,235 7,875 NET INCOMEI(EXPENDITURE) Net Incomel(expenditure) is stated after chargingl(crediting): 2024 2023 Depreciation - owned assets Independent examiners remuneration 34,080 4,052 (31,914) 3,498 The total costs of £145,163 (2023 £187,404) attributable to the provision of accommodation to people of limited financial means and elderly people of the City of Derby, as shown on page 6, is comprised of £140,127 (2023 £118,918) of charitable activities costs and £72,146 (2023 £68,486) of management costs. The negative figure of £31,914 in the comparative period (2023) described as Other, is the total of depreciation corrections and charges for the year as noted above. TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 5 April 2024 nor for the year ended 5 April 2023. Trustees. expenses There were no trustees, expenses paid for the year ended 5 April 2024 nor for the year ended 5 April 2023. Page 10 continued...
Sutton Turner Houses Notes to the Financial Statements - continued for the Year Ended 5 April 2024 2023 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted funds funds Total funds INCOME AND ENDOWMENTS FROM Charitable activities Provision of accommodation to people of limited financial means & elderly people of the City of Derby 144,385 144,385 Investment income 7,875 7,875 Total 152,260 152,260 EXPENDITURE ON Charitsble activities Provision of accommodation to people of limited financial means & elderly people of the City of Derby 182,417 4,987 182,417 4,987 Raising funds Other {31,914) (31,914) Total 155,490 155,490 Net gainsl(losses) on investments (25,668) (25,668> NET INCOMEI(EXPENDITURE) (28,898) (28,898) RECONCILIATION OF FUNDS Total funds brought forward 1,474,321 1,474,321 TOTAL FUNDS CARRIED FORWARD 1,445,423 1,445,423 Page11 continued...
Sutton Turner Houses Notes to the Financial Statements - continued for the Year Ended S April 2024 MANAGEMENT FEES Mr G Neville of Messrs. Nelsons Solicitors served in the role as Clerk to the Trustees. Payments amounting to £63,058 (2023 £60,000) were made during the year in respect of his services. VALUE FOR MONEY METRICS The Value for Money Standard and accompanying Code of Practice issued by the Regulator of Social Housing in April 2018 introduced a requirement for all social housing providers to publish details of performan using a standard set of metrics, and to include these in their statutory accounts. The trustees have considered the requirements therein and as the charity qualifies as a small provider, have followed the relevant guidance. The metrics which they are required to report are as follows: Metric 1 Reinvestment O % (2023 0 % ) Metric 2a - New Supply (Social Housing Units) O % (2023 0 % Metric 2b - New Supply (Non-social Housing Units) O % (2023 00/0) Metrlc 3 - Gearing -1.190/0 (2023 -3.49 % ) Metric 4 - EBITDA MRI Interest Cover O /0 (2023 00/0) Metric 5 - Headline Social Housing Cost per unit £3,752 (2023 £3,166) Metric 6a - Operating Margin (Social Housing Lettings) 7.28 % (2023 15.21 % ) Metric 6b - Operating Margin (Overall) 42.41 % (2023 18.99 % ) Metric 7 - Retum on Capital Employed 4.890/0 {2022 2.00 % ) TANGIBLE FIXED ASSETS Improvements Fixtures to and propety fittings Freehold property Totsls COST At 6 April 2023 and 5 April 2024 990,725 365,187 8,314 1,364,226 DEPRECIATION At 6 April 2023 Charge for year 148,117 19,810 91,697 14,270 8,314 248,128 34,080 At 5 April 2024 167,927 105,967 8,314 282,208 NET BOOK VALUE At 5 April 2024 822,798 259,220 1,082,018 At 5 April 2023 842,608 273,490 1,116,098 The freehold property consists of 2 estates, namely the Elizabeth Tumer Estate, which has a market value of £870,000, and the Annie Sutton Estate which has a market value of £2,605,000. These valuations are not reflected in the financial statements. The freehold land and buildings were valued at 30 October 2017 by Gadsby Nichols on an open market basis. Page 12 continued...
Sutton Turner Houses Notes to the Financial Statements . continued for the Year Ended 5 April 2024 FIXED ASSET INVESTMENTS Listed investments MARKET VALUE At 6 April 2023 Additions Disposals Revaluations 287,941 267,252 (296,221) 21,154 At 5 April 2024 280,126 NET BOOK VALUE At 5 April 2024 280,126 At 5 April 2023 287,941 The investments are overseen by a Fund Manager and IFA who are both UK based. In addition to the amounts noted above cash of £24 (2023 £18,755) was held by Abrdn (2023 Rathbones). The cash is included in the Cash at bank and in hand figure in the balance sheet. 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Maintenance contributions due 1,676 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Accrued expenses - accountancy Maintenance contributions refundable 4,050 294 3,496 4,344 3,496 Page 13 continued...
Sutton Turner Houses Notes to the Financlal Statements - continued for the Year Ended S April 2024 12. MOVEMENT IN FUNDS Net movement in funds At 5.4.24 At 6.4.23 Unrestricted funds General fund Property maintenance fund (formerly Extraordinary repair fund) 1,410,198 (32,100> 1,378,098 35,225 (35,225) 1,445,423 (67,325) 1,378,098 TOTAL FUNDS 1,445,423 (67,325> 1,378,098 Net movement in funds, included in the above are as follows: Incoming Resources Gains and Movement resources expended losses in funds Unrestricted funds General fund Property maintenance fund (fomierly Extraordinary repair fund) 158,739 (211,128) 20,289 (32,100) (35,225) (35,225) 158,739 (246,353) 20,289 (67,325> TOTAL FUNDS 158,739 (246,353) 20,289 (67,325> Comparatlvos for movement in funds Net movement in funds At 5.4.23 At 6.4.22 Unrestrlcted funds General fund Property maintenance fund (formerly Extraordinary repair fund) 1,439,096 (28,898) 1,410,198 35,225 35,225 1,474,321 (28,898) 1.445,423 TOTAL FUNDS 1,474,321 (28,898) 1,445,423 Page 14 continued...
Sutton Turner Houses Notes to the Financial Ststements - continued for the Year Ended 5 April 2024 12. MOVEMENT IN FUNDS . contlnued Comparative net movement in funds, included in the above are as follows: Incoming Resources Gains and Movement resources expended losses in funds Unrestricted funds General fund 152,260 (155,490) (25,668) (28,898) TOTAL FUNDS 152,260 (155,490) (25,668) (28,898) The Trustees have reduced the allocation of funds in the Property maintenance fund (fomierly the Extraordinary repair fund) on the basis that the funds currently being held in a building society account represent an appropriate level of cash reseNe, readily available to cover any unexpected property maintenance, and all other assets therefore represent the General fund. 13. RELATED PARTY DISCLOSURES There were no related party transactions for the year ended 5 April 2024. Page 15
Sutton Turner Houses Detailed Statement of Financial Activities for the Year Ended S April 2024 2024 2023 INCOME AND ENDOWMENTS Investment income Investment dividends received Deposit account interest Investment interest received 1,825 702 708 3,622 187 4,066 3,235 7,875 Charltable activities Weekly maintenance contributions Voids 159,635 (4,131) 156,700 (12,315) 155,504 144,385 Total incomlng rasources 158,739 152,260 EXPENDITURE Charitable actlvltles Rates and water Insurance Light and heat Call alarm system Garden maintenance Sundries Propety maintenance Extraordinary maintenance Reactive maintenance 2,469 3,797 1,384 6,448 21,774 2,201 17,303 59,542 25,209 1,905 3,897 1,596 4,736 13,042 2,306 19,469 58,798 13,169 140,127 118,918 Other Depreciation 34,080 (31,914) Support costs Management Accountancy and legal fees Clerk's remuneration 4,052 63,058 3,499 60,000 67,110 63,499 Finance Investment advisor charges 5,036 4,987 This page does not form part of the statutory financial statements Page 16
Sutton Turner Houses Detailed Statement of Financial Activitles for the Year Ended S April 2024 2024 2023 Total resour5 expended 246,353 155,490 Net expenditure before gains and losses (87,614) (3,230) Realised recognised gains and losses Realised gainsl(losses) on fixed asset investments (865) 6,892 N8t (expenditure)lincome (88,479) 3,662 This page does not fomi part of the statutory financial statements Page 17