2023-03-31-accounts

Charity registration number 1156162

ASKEW HOUSING TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

ASKEW HOUSING TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Ms. Hazel Bettison
	Rev. Adam Hood
	Mr. Michael Thomas Richardson
	Mr. Ian Hunter Hay
	Mr. Graham Ferguson
	Rev. Rachel Hudson
Secretary	Mr Mark Pentecost
Charity number	1156162
Principal address	4 Quay Walls
	Berwick-upon-Tweed
	Northumberland
	TD15 1HD
Independent examiner	Alan Patterson FCA
	17 Walkergate
	Berwick-upon-Tweed
	Northumberland
	TD15 1DJ
Bankers	Royal Bank of Scotland
	42 Hide Hill
	Berwick-upon-Tweed
	Northumberland
	TD15 1AB
Solicitors	Sanderson McCreath & Edney Limited
	4 Quay Walls
	Berwick upon Tweed
	Northumberland
	TD15 1HD

ASKEW HOUSING TRUST

CONTENTS

	Page
Trustees' report	1 - 4
Independent examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8 - 14

ASKEW HOUSING TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable incorporated organisation's governing document, the Charities Act 2011 and “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).

Mission Statement

The Trust was set up to provide low cost housing for specific groups of qualifying people.

The trustees endeavour to select tenants and occupiers from disadvantaged backgrounds who are, in their opinion, deserving of the benefit of the charity.

Objectives and activities

In selecting tenants to meet the Trust's mission, the Trust's objects consider the following:

i) such persons shall as far as possible be persons resident in or originally born in the Borough of Berwick upon Tweed, or the widows or widowers of such persons.

ii) subject to the special merit or special circumstances of any particular applicant or applicants, the first preference shall so far as practicable be given to men, and the widows, children and dependents of men who have served in Her Majesty's Forces (Naval, Military or Air) in any War especially men who are by reason of such service totally or partially disabled from full or active work and the widows, children and dependents of men who were by reason of such service killed or totally or partially disabled from full or active work.

iii) subject as aforesaid preference shall be given (among applicants whose claims are otherwise equal) to those who have been longest resident in the Borough of Berwick upon Tweed.

iv) in default of any such persons being suitable applicants the trustees may select any other person or persons who in the opinion of the trustees is or are associated with the Borough of Berwick upon Tweed by family occupation or otherwise.

v) the selection by the trustees shall be absolute and final in every respect.

The trustees continue a rolling repair programme on the properties of the Trust, having carried out general works during each year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable incorporated organisation should undertake.

The charitable incorporated organisation's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

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ASKEW HOUSING TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

The Trust has achieved its charitable objectives for the period and continues to meet the challenges arising from increased regulation. The Trustees note that the costs of complying with the regulations are also increasing.

The financial performance and position as at the period end are described below.

Grants and Donations

There were no capital commitments as at the balance sheet date (2022: £Nil).

Investment Policy

Sufficient surplus funds to cover any foreseeable contingency are held in cash deposits to allow for immediate access should this be required.

The Trust's funds deemed not to be immediately required are held on Treasury Deposit or invested in Charibond funds and Parmenion Ethical GIA to provide income, as well as benefiting from capital growth whilst minimising risk.

Listed investments are revalued annually as at the period end. Realised and unrealised gains or losses are reported through the Statement of Financial Activities.

Investment Performance

The value of the Charity's investments in Charibond funds has decreased from £10,928 to £10,252. This reflects the decrease in the stock market over the past twelve months. Income from this investment is in line with the previous year.

The charity holds investments in the Parmenion Ethical Portfolio to achieve capital growth over and above inflation whilst adopting a socially responsible stance towards investments. The value of the investment as at the balance sheet date decreased to £118,260 from £129,086 due to the low performance of the market during the year.

Employees and Volunteers

The Trust employed one member of staff during the year.

Financial review

The Trust's income for the period is composed primarily of tenants' rents. This is supplemented by income from cash deposits and investments. Total income for the year amounted to £97,681 (2022: £93,864).

Expenditure for charitable purposes, management of the Trust and Investment amounted to £110,163 (2022: £76,809). The net loss for the year, including the unrealised loss on revaluation of investments of £11,759 (2022: £2,549 gain) was £24,241 (2022: £19,604 profit).

Closing reserves were therefore £341,022 as at the balance sheet date (2022: £365,263).

It is the policy of the charitable incorporated organisation that unrestricted funds which have not been designated for a specific use should be maintained at a minimum level equivalent to between three and six months' expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable incorporated organisation’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk Management

The trustees have assessed the major risks to which the charitable incorporated organisation is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

The Trust intends to continue to provide housing to those in need and to carry out repairs on the properties as necessary. Currently, funds are at a level which will allow this to be achieved.

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ASKEW HOUSING TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Public Benefit

Throughout this report the trustees have sought to highlight those activities undertaken by the Trust in furtherance of its charitable objectives for the public benefit.

The Trust continually considers its activities and policies with particular regard to the public benefit guidance published by the Charity Commission under section 4 of the Charities Act 2011.

Structure, governance and management

The charitable incorporated organisation was established by a constitution on 13 March 2014. On this date, the assets of Askew Housing Trust, an unincorporated charity, number 0231176, were transferred to the charitable incorporated organisation (CIO).

The Trust is a registered CIO, number 1156162.

Trustees act in a voluntary capacity and do not receive any remuneration. Trustees are appointed in accordance with the terms of the constitution.

The trustees who served during the year and up to the date of signature of the financial statements were:

Ms. Hazel Bettison Rev. Adam Hood Mr. Michael Thomas Richardson Mr. Ian Hunter Hay Mr. Graham Ferguson Rev. Rachel Hudson

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable incorporated organisation and of the incoming resources and application of resources of the charitable incorporated organisation for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charitable incorporated organisation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charitable incorporated organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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ASKEW HOUSING TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The trustees' report was approved by the Board of Trustees.

Mr Mark Pentecost Secretary Dated: 11 May 2023

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ASKEW HOUSING TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ASKEW HOUSING TRUST

I report to the trustees on my examination of the financial statements of Askew Housing Trust (the charitable incorporated organisation) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charitable incorporated organisation you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charitable incorporated organisation’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's 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 that in any material respect:

• 1 accounting records were not kept in respect of the charitable incorporated organisation as required by section 130 of the 2011 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

I confirm that there are no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Alan Patterson FCA

17 Walkergate Berwick-upon-Tweed Northumberland TD15 1DJ

Dated: 11 May 2023

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ASKEW HOUSING TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted Unrestricted	Unrestricted Unrestricted
		funds	funds
		2023	2022
	Notes	£	£
Income from:
Income from charitable activities	3	95,016	91,163
Investments	4	2,665	2,701
Total income		97,681	93,864
Expenditure on:
Raising funds	5	1,472	1,693
Charitable activities	6	108,691	75,116
Total expenditure		110,163	76,809
Net gains/(losses) on investments	10	(11,759)	2,549
Net movement in funds		(24,241)	19,604
Fund balances at 1 April 2022		365,263	345,659
Fund balances at 31 March 2023		341,022	365,263

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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ASKEW HOUSING TRUST

BALANCE SHEET

AS AT 31 MARCH 2023

Notes Fixed assets Tangible assets 12 Investments 13 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Income funds Unrestricted funds	2023 £ 106,919 (2,912)	£ 108,503 128,512 237,015 104,007 341,022 341,022 341,022	2022 £ 120,109 (3,363)	£ 108,503 140,014
				248,517 116,746
				365,263
				365,263
				365,263

The financial statements were approved by the Trustees on 11 May 2023

Ms. Hazel Bettison Trustee

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Askew Housing Trust is a charitable incorporated organisation which was established by a constitution on 13 March 2014. The Trust is a registered CIO, number 1156162.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable incorporated organisation's governing document, the Charities Act 2011 and "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)". The charitable incorporated organisation is a Public Benefit Entity as defined by FRS 102.

The charitable incorporated organisation has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charitable incorporated organisation. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable incorporated organisation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable incorporated organisation.

1.4 Incoming resources

Income is recognised when the charitable incorporated organisation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable incorporated organisation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable incorporated organisation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost. No depreciation is provided on freehold properties as in the trustees' opinion the residual value will be in excess of any carrying value.

The freehold land and property is held in furtherance of the charity's objectives and not as investments.

All assets are capitalised whatever their value. All assets are reviewed for impairment and written down to their recoverable amount, where necessary.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Impairment of fixed assets

At each reporting end date, the charitable incorporated organisation reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charitable incorporated organisation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable incorporated organisation's balance sheet when the charitable incorporated organisation becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable incorporated organisation’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable incorporated organisation is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Rent

Rent received in respect of the Trust's property lets is accounted for in the period in which it is receivable.

2 Critical accounting estimates and judgements

In the application of the charitable incorporated organisation’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from charitable activities

	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Rent	95,016	91,163

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Investments

	**Unrestricted **	Unrestricted
	funds	funds
	2023	2022
	£	£
Investment income	2,271	2,690
Interest receivable	394	11
	2,665	2,701

5 Raising funds

	**Unrestricted **	Unrestricted
	funds	funds
	2023	2022
	£	£
Investment management	1,472	1,693
	1,472	1,693

6 Charitable activities

Direct charitable expenditure Governance costs £ £ Staff costs 5,570 - Heat and light 2,645 - Council tax and water rates 15,869 - Insurances 6,399 - Repairs 64,839 - General administration expenses 851 - Resident fuel payments - - 96,173 - Share of governance costs (see note 7) - 12,518 96,173 12,518	Total 2023 £ 5,570 2,645 15,869 6,399 64,839 851 - 96,173 12,518 108,691	Total 2022 £ 5,203 1,607 4,490 5,588 43,640 1,264 1,500
		63,292 11,824
		75,116

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Support costs

Secretary's fees Accountancy Analysed between Charitable activities	2023 £ 8,744 3,774 12,518 12,518	2022 Basis of allocation £ 8,206 Governance 3,618 Governance 11,824 11,824

Governance costs includes payments to the independent examiner of £2,268 (2022: £2,160) for independent examination fees.

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or expenses during the year (2022: £Nil).

9 Employees

Number of employees

The average monthly number of employees during the year was:

	2023	2022
	Number	Number
Average number of employees	1	1
Employment costs	2023	2022
	£	£
Wages and salaries	5,570	5,203

There were no employees whose annual remuneration was £60,000 or more.

10 Net gains/(losses) on investments

	Unrestricted Unrestricted	Unrestricted Unrestricted
	funds	funds
	2023	2022
	£	£
Revaluation of investments	(11,759)	2,549

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12 Tangible fixed assets

Cost At 1 April 2022 At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022	Land and buildings Property improvements £ £ 43,213 65,290 43,213 65,290 43,213 65,290 43,213 65,290	Total £ 108,503
		108,503
		108,503
		108,503

The trustees acknowledge that the market value of the property is much greater than its carrying value. However, they do not feel that a revaluation is required as there is no intention to dispose of any property in the future.

13 Fixed asset investments

Listed investments Unlisted investments £ £ Cost or valuation At 1 April 2022 129,086 10,928 Additions 39,092 - Valuation changes (11,804) (676) Disposals (38,114) - At 31 March 2023 118,260 10,252 Carrying amount At 31 March 2023 118,260 10,252 At 31 March 2022 129,086 10,928 14 Financial instruments 2023 £ Carrying amount of financial assets Equity instruments measured at cost less impairment 128,512 Carrying amount of financial liabilities Measured at amortised cost 2,912	Total £ 140,014 39,092 (12,480) (38,114)
	128,512
	128,512
	140,014
	2022 £ 140,014
	3,363

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ASKEW HOUSING TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

15 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
	2023	2022
	£	£
Trade creditors	-	184
Accruals and deferred income	2,912	3,179
	2,912	3,363
Analysis of net assets between funds
	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Fund balances at 31 March 2023 are represented by:
Tangible assets	108,503	108,503
Investments	128,512	140,014
Current assets/(liabilities)	104,007	116,746
	341,022	365,263

16 Analysis of net assets between funds

17 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

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ASKEW HOUSING TRUST

DETAILED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Investment income Deposit account interest Investment income Incoming resources from charitable activities Rent Total incoming resources Resources expended Investment management costs Investment management costs Direct charitable expenditure Wages Heat and light Council tax and water rates Insurances Repairs General administration expenses Resident fuel payments Governance costs Secretary's fees Accountancy Net gains/losses on investments Revaluation of investments (Deficit)/Surplus for the Year	2023 £ £ 394 2,271 2,665 95,016 97,681 (1,472) 5,570 2,645 15,869 6,399 64,839 851 - (96,173) 8,744 3,774 (12,518) (11,759) (24,241)	2022 £ £ 11 2,690 2,701 91,163 93,864 (1,693) 5,203 1,607 4,490 5,588 43,640 1,264 1,500 (63,292) 8,206 3,618 (11,824) 2,549 19,604

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