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2022-03-31-accounts

Charity registration number 1162867

Company registration number 09355345 (England and Wales)

THE THOMAS SCANLAN TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

THE THOMAS SCANLAN TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs A Nicholls
Mr C Critchley
Mr K Barrett
Mr C W Cooper
Mr R L Thompson
Ms S D Critchley
Dr M Davies (Appointed 11 November
2021)
Charity number 1162867
Company number 09355345
Principal address 19 Church Street
Uckfield
East Sussex
TN22 1BJ
Registered office 19 Church Street
Uckfield
East Sussex
TN22 1BJ
Auditor Plummer Parsons
18 Hyde Gardens
Eastbourne
East Sussex
BN21 4PT
Solicitors H & R Hughes Solicitors LLP
19 High Street
Heathfield
East Sussex
TN21 8LU

THE THOMAS SCANLAN TRUST

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 10
Statement of financial activities 11
Statement of financial position 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 28

THE THOMAS SCANLAN TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their report and financial statements for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's Memorandum and Articles of Association, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

The Trust Deed, dated April 1979, allows the Trustees to provide housing for the retired. The Trustees are empowered to provide and maintain homes upon such terms as they agree are fitting and in consideration of the leases. The Trust’s properties can be purchased on a leasehold basis at a price determined by an independent surveyor or with a discount calculated using the potential purchasers age and life expectancy (the discount scheme).

The Thomas Scanlan Trust is a charity and a limited company. As a housing provider, we provide affordable housing for the over 55’s (over 60’s at Hailsham and Lower Willingdon) across 4 locations in East Sussex, we are committed to meeting the growing needs and altering demands of our ‘niche’ market. We aim to accommodate the requirements of our discerning applicants that join our waiting lists and work to achieve high levels of satisfaction with the housing we provide. Our aim is to provide worry free living.

Boiler replacement programmes are in hand at Polegate, Lower Willingdon and Hailsham.

As properties return to us we are continuing our programme of re-furbishment, with particular attention being paid to the updating of bathrooms and kitchens. An example of this is a recent bathroom refurbishment at our Hailsham site. This is now a 'level access' wet room.

We have now added five rental properties to our portfolio, in line with increasing enquiries for retirement property to rent. Initially we are using our own housing stock as properties become available, whilst assessing the needs of those on our waiting lists. We offer our rental properties at a ‘less than market’ rent, based on local authority housing allowances. Our aim is to regularly monitor the need for rental properties, based on our waiting lists and increase that part of our portfolio as funds allow.

In December we instructed a firm of Chartered Surveyors to undertake a survey of all of our properties and provide us with a maintenance plan of likely works over the coming five years to help plan and prepare proactively.

We have also begun steps to consider the installation of solar panels to the Trust’s communal electricity supply in Uckfield and at our properties in Willingdon, in an effort to help make a difference to rising costs and use cleaner energy sources.

We also added a further five car parking spaces at one of our Uckfield sites to help meet the demand of our residents.

THE THOMAS SCANLAN TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

As properties return to us we are continuing our programme of refurbishment, with particular attention being paid to the updating of bathrooms and kitchens. An example of this is a recent kitchen refurbishment at our Uckfield site.

The Trustees have had regard to the Charity Commission’s guidance on public benefit and are aware that it is their duty to administer the charity to further its purposes. They are aware that the Public Benefit must be identifiable and proven. They are also aware that whilst our charity does benefit individuals of a particular section of the public our beneficiaries are deemed to be a sufficient section of the public.

We provide access to contractors and our office staff when maintenance/adaptation issues occur.

Each property is provided with a ‘lifeline’ system, providing 24hr access to care and emergency services. Some residents choose not to access this. They are able to review this option at any time during their tenure.

We are a ‘niche’ provider but fulfil a need in a market where ‘retirement’ housing and associated services are being offered at huge costs by the larger retirement housing companies.

Achievements and performance

During the year the following meetings were held:

During the year the following properties changed hands:

THE THOMAS SCANLAN TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Unoccupied properties as at 31st March 2022:

Financial review

This report is to be viewed in collaboration with our prepared accounts for the year ended 31 March 2022.

The Trust made a deficit of £67,802 before capital gains and investments (2021: surplus £95,596). The net deficit after capital gains and investments is £65,929 (2021: surplus £482,883).

The Trust’s Treasurer in liaison with the Trustees, Accountant and Bank Advisers monitor the level of reserves held by the Trust.

The Reserves Policy of the charity outlines the monies that the Trustees would wish to have in reserve for the charity to be able to expand without financial constraints. The Trustees continue to monitor these reserves and to build on them for future developments and/or to pursue their aim to provide rental properties.

Future reserves can be accumulated from the sale of properties on the death of residents. Those sold using our Discount Scheme, automatically revert to the Trust for re-sale.

Reserves for each of the Service Charge Accounts are accrued in separate accounts for each site and used towards items of annual expenditure.

The Discount Property Settlement Reserve Fund is currently £400,000.

The Emergency Reserve Fund is set at £100,000.

Reserve funds are held in separate accounts with seven financial institutions in order to mitigate the risk of losing funds due to financial collapse.

As conditions became more stable relating to the impact of the COVID –19 Pandemic during the year, our property sales increased due to more confidence within our target market. As properties become vacant consideration is given to whether properties should be sold or used as rental properties.

Unrestricted free funds are currently in surplus by £22,794 (2021: deficit £144,154).

All major decisions are taken following consultation with all Trustees and where necessary with the participation of professionals.

Trustees meet approximately every two months, where bank balances and financial matters are reviewed and discussed along with the running of the Trust. The Trustees are able to meet via video conferencing if and when necessary. During the pandemic all meetings have been held via zoom apart from one held at the office during a period when lockdown was relaxed.

Prior to each meeting Trustees are provided with a summary of the movements in the bank accounts and balances.

The General Manager is able to consult with Trustees on a daily basis when necessary. Policies are in place regarding the verification of invoices and cheque payments. Where it has not been possible for Trustees to call into the office to sanction invoices, these have been collated and the details circulated to all Trustees for approval. The Treasurer and Chairman have access to the online banking. Spot checking of invoices is regularly carried out at the office by one Trustee.

Matters requiring consultation are posted or e-mailed to Trustees and decisions made according to the majority. We have commissioned the setting up of a secure ‘email’ to share pertinent information with the Trustees.

THE THOMAS SCANLAN TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

MOVING FORWARD

In the coming year the Trust would like to extend its rental portfolio, funds permitting, in addition with continuing to update and modernise our properties as they become vacant and funds dictate. We will consider any request from current residents to help with the cost of updating bathroom and kitchens.

We are recognising the need to adapt to the changing landscape of retirement and the requirements of existing and future customers. To this end we will prioritise our existing properties and our rental portfolio in the coming year.

We will continue with our work to 'modernise' our HR, office and Trustee induction policies.

The Trust’s main aim is to continue to provide “worry free and affordable housing for the retired”.

Structure, governance and management

Our governing documents are the Trust Deed, formulated as a result of the last will and testament of the late Thomas Arthur Scanlan in which he left the bulk of his estate “to be used in creating a Trust for the purpose of erecting homes for the benefit of retired people”

Following the incorporation of the Trust on 15th December 2014, the Trust is now also governed by Company Law and it’s Memorandum and Articles of Association.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mrs A Nicholls Mr C Critchley Mr K Barrett Mr T Cameron (Resigned 10 September 2021) Mr C W Cooper Mr R L Thompson Ms S D Critchley Dr M Davies (Appointed 11 November 2021)

Trustees/Directors come to the Trust via personal recommendation or application. Such persons are invited to attend a meeting of the Trustees and are then guided through what is required of them by one other Trustee. They are provided with information from the Charity Commission as to their role and duties. Following attendance at a meeting and subsequent Q and A, individuals deemed suitable are asked, in writing, to join the board. Following this a formal Deed of Appointment is prepared by the Trust’s Solicitor and all necessary ‘legal’ checks undertaken. We have now produced a Trustee Induction pack which provides guidance on the role and has links to websites and online training courses to support new Trustees.

Specific Trustee roles are agreed at the AGM, where all officers and Trustees re-affirm their willingness to continue on the board.

The Trustees are always on the lookout for suitable Trustees/ Directors and are mindful of the skills and diversity

required.

The day to day running of the Trust is undertaken by the General Manager, in her absence there are two part time administration assistants. The General Manager has delegated powers to deal with the running of the office and the Trusts business with access to the Trustees at all times. Policies are in place and adhered to as well as a guide detailing the daily needs of the office.

All staff are monthly paid, payroll being managed by the Trust’s accountant. Salary/hourly rates are reviewed in February each year, with any amendments effective 1st April. Any staff eligible for pension benefits are enrolled unless they decline membership.

THE THOMAS SCANLAN TRUST

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Auditor

In accordance with the company's articles, a resolution proposing that Plummer Parsons be reappointed as auditor of the company will be put at a General Meeting subject to satisfactory quotations being given.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Mr R L Thompson

Trustee Dated: 28 September 2022

THE THOMAS SCANLAN TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

The trustees, who are also the directors of The Thomas Scanlan Trust for the purpose of company law, 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).

Company Law 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 Trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE THOMAS SCANLAN TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE THOMAS SCANLAN TRUST

Opinion

We have audited the financial statements of The Thomas Scanlan Trust (the ‘Trust’) for the year ended 31 March 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including 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 Trust 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

THE THOMAS SCANLAN TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE THOMAS SCANLAN TRUST

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Trust for the purpose 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 trustees 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 trustees are responsible for assessing the Trust’s 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the charity and its activities, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006, Charities Act 2011, Employment law, Data Protection Act, GDPR, and other relevant legislation.

We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, being FRS 102 and Charities SORP (FRS 102) (effective January 2019). We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase income or reduce expenditure, related party transactions, management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

THE THOMAS SCANLAN TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE THOMAS SCANLAN TRUST

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

THE THOMAS SCANLAN TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE THOMAS SCANLAN TRUST

Other matters

The comparative financial statements are unaudited.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Plummer Parsons

26 September 2022

Chartered Accountants Statutory Auditor

18 Hyde Gardens Eastbourne East Sussex BN21 4PT

Plummer Parsons is eligible for appointment as auditor of the Trust by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE THOMAS SCANLAN TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Unrestricted
funds
funds
general
designated
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
-
-
Charitable activities
4
373,951
-
Investments
5
3,232
-
Total income
377,183
-
Expenditure on:
Charitable activities
6
210,235
9,750
Other
10
225,000
-
Total resources
expended
435,235
9,750
Net incoming/(outgoing)
resources before investment
gains/(losses)
(58,052)
(9,750)
Net gains/(losses) on
investments
11
-
1,873
Net (outgoing)/
incoming resources
before transfers
(58,052)
(7,877)
Gross transfers between
funds
225,000
(225,000)
Net movement in funds
166,948
(232,877)
Fund balances at 1 April
2021
(144,154)
6,492,440
Fund balances at 31
March 2022
22,794
6,259,563		 Total
Unrestricted
Unrestricted
funds
funds
general
designated
2022
2021
2021
£
£
£
-
385
-
373,951
242,077
-
3,232
716
-
377,183
243,178
-
219,985
144,954
9,753
225,000
(7,125)
-
444,985
137,829
9,753
(67,802)
105,349
(9,753)
1,873
-
387,287
(65,929)
105,349
377,534
-
265,402
(265,402)
(65,929)
370,751
112,132
6,348,286
(514,905)
6,380,308
6,282,357
(144,154)
6,492,440		 Total
2021
£
385
242,077
716
243,178
154,707
(7,125)
147,582
95,596
387,287
482,883
-
482,883
5,865,403
6,348,286

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE THOMAS SCANLAN TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Notes
Fixed assets
Property, plant and equipment
12
Investment properties
13
Current assets
Trade and other receivables
15
Cash at bank and in hand
Current liabilities
16
Net current assets
Total assets less current liabilities
Non-current liabilities
17
Provisions for liabilities
Net assets
Income funds
Unrestricted funds - designated
General unrestricted funds		 2022
£
£
307,521
5,952,043
6,259,564
1,114
1,122,608
1,123,722
(109,650)
1,014,072
7,273,636
(983,186)
(8,093)
6,282,357
6,259,563
22,794
6,282,357		 2021
£
£
317,270
6,175,170
6,492,440
-
943,574
943,574
(128,754)
814,820
7,307,260
(936,590)
(22,384)
6,348,286
6,492,440
(144,154)
6,348,286

THE THOMAS SCANLAN TRUST

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 MARCH 2022

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on 28 September 2022

Mr C Critchley Mr R L Thompson Trustee Trustee

Company Registration No. 09355345

THE THOMAS SCANLAN TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
25
Investing activities
Purchase of investment property
Proceeds from disposal of investment
property
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
£
175,802
-
-
3,232
3,232
-
179,034
943,574
1,122,608		 2021
£
£
(115,987)
(150,100)
415,500
716
266,116
-
150,129
793,445
943,574

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

The Thomas Scanlan Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 19 Church Street, Uckfield, East Sussex, TN22 1BJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Trust's Memorandum & Articles of Association, the Companies Act 2006 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 Trust is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £ Pounds Sterling.

The accounts have been prepared under the historical cost convention, modified to include investment properties and 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 Trust 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.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the Trust 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.

Income is derived from 3 main sources: grants of 125 year leases, grants of a life interest lease or rental of property.

Where a life interest lease is granted, the income is spread over the remaining life expectancy of the purchaser. In previous years, the original amount received was spread over the remaining life expectancy. The life expectancy is based on the Life Tables released by the Office of National Statistics. When the estimates are revised, this change in life expectancy is applied prospectively to the income deferral calculations,

Where a 125 year lease is granted, the income is recognised in the year of grant. The trust is also entitled to 5% of the proceeds of any subsequent lease assigned by the original tenant and this income is also recognised in the year of assignment.

Where a property is rented, income is recognised on an accruals basis.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities for costs are recognised when incurred.

Costs included within the trust's accounts relate either to the direct provision of residential accommodation or to the support and governance costs associated with the trust's activities.

Included within Activities undertaken directly are general expenses and the costs of subsidising the running of the estates which the trust owns. The main costs within this section relate to the provision for possible settlement of life interest leases if the resident dies or leaves within 10 years of the signing of the lease. This is covered in more detail in the provisions note below.

Support costs include office and staff costs relating to overseeing the trust's activities.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 4% straight line Fixtures, fittings and equipment 25% straight line

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.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially measured at cost and subsequently measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditure) for the year.

1.8 Impairment of non-current assets

At each reporting end date, the Trust 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).

1.9 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.

1.10 Financial instruments

The Trust 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 Trust's balance sheet when the Trust 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.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables 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 payables 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 payables 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 Trust’s contractual obligations expire or are discharged or cancelled.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.11 Provisions

Provisions are recognised when the Trust has a legal or constructive present obligation as a result of a past event, it is probable that the Trust will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period it arises.

The trust offers a 'Money Back Guarantee' on the life interest leases. The conditions of the guarantee have changed for leases entered into during the current and subsequent years. Existing leases entered into in previous years still have the old conditions attached to them.

Previously, the conditions were that if the tenant dies or leaves within the first 10 years of the grant of the lease, then an amount is paid back to the tenant (or their executors) based on the original amount paid which reduces on a straight line basis over the 10 years. This has now been changed so that if an applicant has less than 10 years but more than 5 years life expectancy, the amount paid back reduces on a straight line basis over 5 years. Applicants with less than 5 years life expectancy will not receive any amount back. Applicants with more than 10 years will have the same conditions as in previous years.

For existing leases, if at the end of the financial year the life expectancy of a tenant with a life interest lease granted less than 10 years ago is less than 10 years, a provision is calculated to reflect the payment that is anticipated following the death of the tenant within the following 10 years. For new leases, as the tenant's life expectancy will be greater than the term the guarantee payback period runs over, no provision will be recognised.

For existing leases, if at the end of the financial year the life expectancy of a tenant with a life interest lease granted less than 10 years ago is greater than 10 years, a contingent liability is disclosed to reflect the payment that would be required if the tenant were to die within the initial 10 year period. For new leases, all amounts potentially due under the guarantee will be disclosed as a contingent liability.

The provisions and contingencies included are updated at each year end to account for the changes in probabilities based on the life expectancies of the residents.

1.12 Employee benefits

If material, 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 Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Critical accounting estimates and judgements

In the application of the Trust’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

Depreciation charged on tangible assets requires an estimation of their useful economic lives and residual values. The carrying values of tangible assets are therefore sensitive to the estimates used which are based on the current condition and the value in use of the assets to the trust. The estimates are reviewed annually.

Discounting of leases and sales prices for properties

The discounts applied to the sales prices for the properties, as well as the leases and subsequent calculation of income are based on the estimated life expectancy for each resident using the National Life Tables as published by the Office of National Statistics. If these estimates were incorrect, this could result in material misstatements to the accounts.

3 Donations and legacies

Total Unrestricted
funds
general
2022 2021
£ £
Donations and gifts - 385

4 Charitable activities

Provision of
housing
Provision of
housing
2022
2021
£
£
Sales within charitable activities
331,947
202,907
Charitable rental income
22,052
20,168
Other income
19,952
19,002
373,951
242,077		 Provision of
housing
Provision of
housing
2022
2021
£
£
Sales within charitable activities
331,947
202,907
Charitable rental income
22,052
20,168
Other income
19,952
19,002
373,951
242,077		 Provision of
housing
Provision of
housing
2022
2021
£
£
Sales within charitable activities
331,947
202,907
Charitable rental income
22,052
20,168
Other income
19,952
19,002
373,951
242,077
2022
£
331,947
22,052
19,952
373,951		 2021
£
202,907
20,168
19,002
242,077

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

5 Investments

Unrestricted Unrestricted
funds funds
general general
2022 2021
£ £
Interest receivable 3,232 716
6 Charitable activities
Provision of
housing
Provision of
housing
2022
2021
£
£
Gardening
2,022
7,705
Insurance
2,759
3,160
Repairs and maintenance
135,442
40,908
Legal and professional
8,348
4,113
Provision for life interest refunds
(15,521)
25,496
Service charges
3,438
(2,924)
Light and heat
2,700
777
Rates
5,402
3,425
Bank charges
30
30
144,620
82,690
Share of support costs (see note 7)
62,155
63,899
Share of governance costs (see note 7)
13,210
8,118
219,985
154,707
Analysis by fund
Unrestricted funds - general
210,235
144,954
Unrestricted funds - designated
9,750
9,753
219,985
154,707		 Provision of
housing
Provision of
housing
2022
2021
£
£
Gardening
2,022
7,705
Insurance
2,759
3,160
Repairs and maintenance
135,442
40,908
Legal and professional
8,348
4,113
Provision for life interest refunds
(15,521)
25,496
Service charges
3,438
(2,924)
Light and heat
2,700
777
Rates
5,402
3,425
Bank charges
30
30
144,620
82,690
Share of support costs (see note 7)
62,155
63,899
Share of governance costs (see note 7)
13,210
8,118
219,985
154,707
Analysis by fund
Unrestricted funds - general
210,235
144,954
Unrestricted funds - designated
9,750
9,753
219,985
154,707		 Provision of
housing
Provision of
housing
2022
2021
£
£
Gardening
2,022
7,705
Insurance
2,759
3,160
Repairs and maintenance
135,442
40,908
Legal and professional
8,348
4,113
Provision for life interest refunds
(15,521)
25,496
Service charges
3,438
(2,924)
Light and heat
2,700
777
Rates
5,402
3,425
Bank charges
30
30
144,620
82,690
Share of support costs (see note 7)
62,155
63,899
Share of governance costs (see note 7)
13,210
8,118
219,985
154,707
Analysis by fund
Unrestricted funds - general
210,235
144,954
Unrestricted funds - designated
9,750
9,753
219,985
154,707
2022
£
2,022
2,759
135,442
8,348
(15,521)
3,438
2,700
5,402
30
144,620
62,155
13,210
219,985
210,235
9,750
219,985		 2021
£
7,705
3,160
40,908
4,113
25,496
(2,924)
777
3,425
30
82,690
63,899
8,118
154,707
144,954
9,753
154,707

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

7 Support costs

Support
costs
Governance
costs
£
£
Staff costs
38,766
-
Light and heat
-
-
Postage, stationery and
telephone
2,309
-
Rates
424
-
Computer costs
2,332
-
Travelling expenses
105
-
Legal and professional
4,075
-
Sundry expenses
4,394
-
Depreciation
9,750
-
Audit fees
-
7,800
Accountancy
-
5,410
62,155
13,210
Analysed between
Charitable activities
62,155
13,210		 2022
Support
costs
Governance
costs
£
£
£
38,766
37,378
-
-
1,532
-
2,309
2,716
-
424
1,230
-
2,332
1,222
-
105
25
-
4,075
7,234
-
4,394
2,809
-
9,750
9,753
-
7,800
-
-
5,410
-
8,118
75,365
63,899
8,118
75,365
63,899
8,118		 2021
£
37,378
1,532
2,716
1,230
1,222
25
7,234
2,809
9,753
-
8,118
72,017
72,017

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 4 trustees were reimbursed a total of £105 for travel expenses (2021 - 1 was reimbursed £25).

9 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Support staff 3 3
Employment costs 2022 2021
£ £
Wages and salaries 38,167 36,705
Other pension costs 599 673
38,766 37,378

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

9 Employees

(Continued)

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

10 Other

Unrestricted Unrestricted
funds funds
general general
2022 2021
Net loss on disposal of programme related investments 225,000 (7,125)

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
designated designated
2022 2021
£ £
Revaluation of investments 1,873 387,287

12 Property, plant and equipment

Freehold land
and buildings
Fixtures,
fittings and
equipment
£
£
Cost
At 1 April 2021
360,668
4,303
At 31 March 2022
360,668
4,303
Depreciation and impairment
At 1 April 2021
43,529
4,171
Depreciation charged in the year
9,618
132
At 31 March 2022
53,147
4,303
Carrying amount
At 31 March 2022
307,521
-
At 31 March 2021
317,138
132		 Total
£
364,971
364,971
47,700
9,750
57,450
307,521
317,270

The buildings and other assets owned by the trust are necessary for its day to day charitable activities. For this reason, the assets have been ring-fenced into a separate designated fund to show that these monies are not realisable without having an impact on the trust's activities.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

13
Investment property
Fair value
At 1 April 2021
Disposals
Net gains or losses through fair value adjustments
At 31 March 2022		 2022
£
6,175,170
(225,000)
1,873
5,952,043

Investment property comprises the full open market value of properties leased to residents under a life interest lease or under a rental agreement, and the value of the reversionary interest of properties leased to residents under 125 year leases. The fair value of the investment property as at 31 March 2022 has been arrived at on the basis of a valuation carried out in August 2021 by Appleby Petfield Chartered Surveyors, who are not connected with the Trust. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

14
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
15
Trade and other receivables
Amounts falling due within one year:
Other receivables
16
Current liabilities
Notes
Other taxation and social security
Deferred income
19
Trade payables
Accruals and deferred income		 2022
£
1,114
11,819
2022
£
1,114
2022
£
339
97,492
463
11,356
109,650		 2021
£
-
35,532
2021
£
-
2021
£
784
92,438
29,761
5,771
128,754

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

17
Non-current liabilities
Notes
Deferred income
19
18
Provisions for liabilities
Provision for payments under the 'Money Back Guarantee'
Movements on provisions:
At 1 April 2021
Reversal of provision
At 31 March 2022		 2022
£
983,186

The expected time and amount of the provisions is calculated based on the initial life expectancy of residents and the premiums paid, further information can be found in accounting policies 1.11.

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

19 Deferred income

Other deferred income 2022
£
1,080,678		 2021
£
1,029,028
2021
£
92,438
936,590
1,029,028
1,224,875
-
(195,847)
1,029,028
Deferred income is included in the financial statements as follows:
Current liabilities
Non-current liabilities
Analysis of movement on deferred income
Brought forward balance
Income deferred in year
Amounts released in year
Carried forward balance		 2022
£
97,492
983,186
1,080,678
1,029,028
158,187
(106,537)
1,080,678

Deferred income relates to the amounts received for the grant of life interest leases by the Trust. As the lease term is for the length of a resident's life, income is spread over the life expectancy of the resident at the year end date. 1 year's worth of income out of the total life expectancy is released to the SoFA in the financial year, with the balance relating to the life expectancy after the year end included in deferred income.

20 Retirement benefit schemes

Defined contribution schemes

The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.

The charge to the Statement of Financial Activities in respect of defined contribution schemes was £599 (2021: £673).

lo￿ E

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

22
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
2022
2022
£
£
Fund balances at 31
March 2022 are
represented by:
Property, plant and
equipment
-
307,521
Investment properties
-
5,952,043
Current assets/(liabilities)
1,014,072
-
Long term liabilities
(983,186)
-
Provisions
(8,093)
-
22,793
6,259,564		 Total
Unrestricted
funds
Designated
funds
2022
2021
2021
£
£
£
307,521
-
317,270
5,952,043
-
6,175,170
1,014,072
814,820
-
(983,186)
(936,590)
-
(8,093)
(22,384)
-
6,282,357
(144,154)
6,492,440		 Total
2021
£
317,270
6,175,170
814,820
(936,590)
(22,384)
6,348,286

23 Financial commitments, guarantees and contingent liabilities

Under the 'old' Money Back Guarantee conditions, if the life expectancy of a tenant on a discounted lease is less than 10 years at the year end and is within the first 10 years of the lease, a provision is calculated to reflect the payment that is anticipated if the resident dies within the first 10 years. If the life expectancy of the tenant is more than 10 years at the year end and is within the first 10 years of the lease, a contingent liability is included to recognise the amounts that would potentially fall due if the tenant were to die within the first 10 years.

Under the 'new' conditions, the life expectancy of a tenant will be greater than the term of the guarantee and so a contingent liability will be disclosed for potential amounts due for all life interest leases.

At 31 March 2022, the total contingent liability is calculated to be £694,625 (2021: £621,470).

24 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 33,341 27,633

There were no disclosable related party transactions during the year (2021 - None).

THE THOMAS SCANLAN TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

25
Cash generated from operations
(Deficit)/surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Loss on disposal of property, plant and equipment
Fair value gains and losses on investments
Depreciation and impairment of property, plant and equipment
Movements in working capital:
(Increase)/decrease in trade and other receivables
(Decrease)/increase in trade and other payables
Increase in provisions
Increase/(decrease) in deferred income
Cash generated from/(absorbed by) operations		 2022
2021
£
£
(65,929)
482,883
(3,232)
(716)
225,000
-
(1,873)
(387,287)
9,750
9,753
(1,114)
15,285
(24,159)
25,765
(14,291)
(65,823)
51,650
(195,847)
175,802
(115,987)

26 Analysis of changes in net funds The Trust had no debt during the year.