2022-12-31-accounts

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WORCESTER MUNICIPAL CHARITIES ( CIO )

Registered Charity No.1166931 • Member of the Almshouse Consortium Registered Housing Association No.4855 • Member of the Almshouse Association No.159

Predecessor charities founded 1559 & 1836

TRUSTEES' ANNUAL REPORT 1st JANUARY – 31st DECEMBER 2022

This is the seventh Annual Report of the Charity which was created specifically by the Trustees in 2016 as the replacement Charity for Worcester Municipal Exhibitions Foundation (Education) and Worcester Consolidated Municipal Charity (Relief in Need & Almshouses), whose business, staff, assets and liabilities were vested in the new Charity on 1st July 2016, as a “Charitable Incorporated Organisation” which has very similar objects to the two unincorporated predecessor Charities which it replaced.

The Trustees present their report and the audited financial statements of the Charity for the twelve months’ period ended 31st December 2022 (“The Period”). The Trustees have adopted the provisions of the Charities SORP "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 (CFRS 102) and the Housing SORP; Accounting by Registered Social Housing Providers update 2018."

The financial statements for the Charity have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Statements of Recommended Practice.

All enquiries to the Registered Office Worcester Municipal Charities (CIO) Kateryn Heywood House Berkeley Court, The Foregate Worcester WR1 3QG Telephone: [phone] Fax: [phone]

Office Administration:

Maggie Inglis, Sarah Bradnick, Margaret Green Email: [e-mail]

Office Accounts:

Carlo Barentsen, Sarah Bradnick Email: [e-mail]

Website: www.wmcharities.org.uk

Berkeley's Hospital Chapel and Almshouses - Grade 1 Listed Building Providing sheltered housing for seven residents, the Charity's offices, and the redundant Chapel, now used as a meeting room for Trustees, residents and also available for other charities to use free, providing they meet certain conditions such as not holding more than 1 year’s income in reserve.

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WORCESTER MUNICIPAL CHARITIES ( CIO )

"The Charity"

REPORT FOR THE 12 MONTHS’ PERIOD ENDED 31st DECEMBER 2022 (“The Period”)

For ease of understanding “the Charity” also refers generally to the two predecessor charities in respect of events prior to 1st July 2016

Item	INDEX	Page
1.	History of the Constitutional Changes leading to the Present Day	4.
2.	The Charitable “Objects” of the Charity and the Charitable “Areas of Beneft”	4.
3.	Constitutional Grant payable under the terms of the Trust Deeds	5.
4.	Administration of the Trustee Body - the Trustees who served in The Period	5.
5.	Composition of the Trustee Body and the Administration	5.
6.	Professional Advisers to the Charity	6.
7.	The Mission Statement, Public Beneft Requirement and Equal Opportunities	6.
8.	A summary of what was achieved during The Period	7.
8.	The Grants Committee	8.
9.	Almshouses - “Afordable” Housing for the Retired and the Non-Retired Homeless	9.
10.	Grants Awarded in “The Period” by the Charity	14.
11.	The Grants Committee’s Policies and Practices	15.
12.	Social Investment Programme	16.
13.	Strategic Objectives, Investment Policy & Reviews	20.
14.	The Cost of Administration & Governance	24.
15.	Property Re-valuations	24.
16.	Property Insurances	24.
17.	Extraordinary Repairs of Commercial Properties and Almshouses	24.
18.	Reserves Policy and Financial Risk Assessments	25.
19.	Staf Remuneration	25.
20.	Serious Incidents	25.
21.	Property Portfolio	26.
22.	Conclusion and Comment	27.
23.	Legislation, Policies, Procedures and Practices - compliance	29.
24.	Principal Advisers & Trustees' approval of the Report	30.
25.	Audited Accounts- Worcester Municipal Charities (CIO)	31.

Note – In 2020 the Charity published “While the World Endureth” , a history of the Trust since 1559. Copies are available from the office @ cost price £27, or can be viewed on the website: http://www.wmcharities.org.uk

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1. CONSTITUTIONAL CHANGES LEADING TO THE PRESENT DAY

• a) After Henry VIII dissolved the monasteries (1536 - 40) the new Church of England’s behaviour inspired little confidence and benefactors began leaving money in trust to the local Municipal Corporations instead. Kateryn Heywood, the first such local donor, in her will of 1559, "gave unto the Corporation of Worcester, 100 marks, to be delivered to the Chamber of the said City, to the end that it might be bestowed in lands for the poor people for ever.” Many other local benefactors followed suit, leading to the creation by Robert Youle in 1560 of the St. Thomas’s Day (or General) Charities . They invested in properties and, from the rental income, handed out doles of two shillings per family, to a disorderly queue at the Guildhall on St, Thomas’ Day December 21st, “Winter Solstice”, the appointed day. The money was distributed indiscriminately, without reference to assessed need, (other than thirst!) and it was always possible to re-join the disorderly queue outside the Guildhall. This “very objectionable scheme” was discontinued in 1867.

• b) The Municipal Corporations comprised self-appointed freemen and aldermen, and widespread concern nationally grew about their ability to manage the charities properly and honestly. Charity Commissioners were appointed in the first part of the 19th Century to inspect all the public charities throughout the land, and their national inquiries and discovery of widespread abuse of Trust led directly to the passing of the “Municipal Corporation Reform Act” in 1835. In Worcester all the money and property that remained from the original 27 charitable bequests was then transferred from the old un-elected Corporations to new independent bodies of charity trustees, initially appointed by the Lord Chancellor in 1836.

• c) In 1899 they were consolidated into one holding Charity, the Worcester Consolidated Municipal Charity. Of these 27 charities, the 6 primarily educational charities, were consolidated into the Worcester Municipal Exhibitions Foundation in 1909. Both charities were managed together by the same single body of Trustees from 1913 onwards.

• d) On 4th May 2016 Worcester Municipal Charities CIO (“WMC (CIO)”) was registered with the Charity Commission with registration no.1166931, and on vesting day 1st July 2016, the business, staff and all the assets and liabilities of the two predecessor charities were handed over to the new Charity, followed by the former ones being wound up.

2. THE “CHARITABLE OBJECTS” OF THE WMC (CIO) ARE:

• (a) the relief of persons resident in the City of Worcester who are in conditions of need, hardship or distress including by making grants of money to individuals, or to organisations which provide relevant services; or providing or paying for items, services or facilities calculated to reduce the need, hardship or distress of such persons;

• (b) to carry on for the benefit of the community the business of the provision of social housing in the form of almshouses and affordable social housing and any associated amenities for persons in necessitous circumstances upon terms appropriate to their means; and

• (c) the advancement of education by promoting education in the area of benefit being the City of Worcester, the Parishes of Powick, Bransford and Rushwick and the area of the Ancient Parish of Leigh, all in the County of Worcestershire, in such ways as the Trustees think fit.

• (d) Twelve per cent (12%) of the Net Income of the CIO from its permanent endowment assets shall be applied for the educational purposes set out in clause (c).

The Trustees believe the charitable objects collectively constitute the public benefit requirement of the Charity Commission.

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3. "CONSTITUTIONAL GRANT” PRESCRIBED BY THE TRUST DEEDS

By virtue of the intention of the original benefactors and the original constitutions of the predecessor charities, the following grant is automatically payable each year:

"Nought point one per cent (0.1%) of the “Net” income of the CIO from its permanent endowment assets income of the CIO, or as near as may be applied, shall be applied in augmenting the income of the charity called Palmer’s Educational Foundation in the Ancient Parish of Suckley in the County of Worcestershire."

The Trustees have agreed that “If 0.1% is less than £950 it will be increased to that amount. There will be a review of the “top up” to £950 in 2023.”

Two Trustees of this Charity, Brenda Sheridan and Margaret Jones are nominated as trustees to the "John Palmer" Charity.

4. ADMINISTRATION OF THE TRUSTEE BODY

The Charity is administered by 17 Trustees.

Four are nominated by Worcester City Council; four are nominated by major beneficiary "stakeholder" charities, chosen in a ballot of the Trustees every 3 years; and nine “independent Trustees” are co-opted by the Trustee body, being “persons who through residence, occupation, employment or otherwise, have special knowledge of Worcester City”.

On appointment, new Trustees are provided with induction training, given copies of the Constitution and Rules, the Annual Report and Accounts, a History of the Charity and a copy of the Charity Commission's publication CC3 “the Essential Trustee” which includes a trustee job description.

The 17 Trustees of the Charity during The Period were as follows:

Paul Griffith I , (Chairman), Geraint Thomas Ch (Vice Chairman), Jenny Barnes N , Roger Berry I , Richard Boorn N , Paul Denham I , Graham Hughes I , Margaret Jones I , Mel Kirk Ch , Roger Knight N , Jonathan Newey I, Sue Osborne Ch , Margaret Panter Ch , Ron Rust I , Martyn Saunders I , Brenda Sheridan I , Alan Tidy N .

(Two Trustees resigned in the period, Ruth Heywood I and Mike Johnson N , and they were replaced by Jonathan Newey I and Alan Tidy N )

"I" nine independent co-opted by the Board for 5 years;

"N" four nominated by the City Council for 4 years;

"Ch" four nominated to the Trustees by the 4 chosen major beneficiary "stakeholder" charities for 3 years i.e. Armchair, (Furniture Re-Cycling) Citizens Advice Worcester, MAGGS Day Centre for the Homeless and Worcester Heritage & Amenity Trust (Tudor House Museum).

5. COMPOSITION OF THE TRUSTEE BODY AND THE ADMINISTRATION

The Trustees include people with experience in e.g. Social Services, Business Management, Child Care, Adult Care, Education, Housing, the Magistracy, Commerce, Finance, Planning, the Law, Property and Social Security. The Board of Trustees meet monthly, except in August and December, oversees the policy making of the Charity, scrutinises payments and bank balances, monitors the finances and reviews and approves the Grants Sub-Committee's recommendations.

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The Board carries out annual inspections of the property owned on a rotational basis - there are two whole day inspections a year, with each property being visited once in every two years. The properties are all vested in the CIO as “Custodian” Charity.

A Grants Sub-Committee - meets monthly, to deal with the individual applications for grants that require detailed consideration. The Chairman and Vice Chairman have joint delegated authority to make grants up to £1,000 in an emergency (£2,000 over Christmas).

6. PROFESSIONAL ADVISERS AND STAFF OF THE CHARITY

The Charity retains Solicitors Hallmark Whatley Hulme, Chartered Surveyors GJS Dillon, Chartered Surveyors ARC Ltd., Architects Lett & Sweetland, Auditors Kendall Wadley LLP, and Unity Trust Plc as Bankers. (Full details of the Professional Advisers are on page 30).

The Trustees wish to place on record their thanks to all these officials for their work in helping the Charity to deliver a worthwhile service to Worcester’s needy citizens. Thanks are also due to the staff pictured:

Top left to right Carlo Barentsen (Accountant), Adrian Robinson (Property Business Manager), Bottom left to right Maggie Inglis (Office Manager), Margaret Green and Sarah Bradnick (Administrators) who together run the Charity office on a day-to-day basis.

7. THE "MISSION" STATEMENT, THE PUBLIC BENEFIT REQUIREMENT AND EQUAL OPPORTUNITIES

Public Benefit

The Trustees' “Mission” is to seek to achieve the public benefit objects set out in the Trust Deed, in compliance with the Charity Commission's guidance, and in the most efficient and effective way. The Charity attempts to earn as much as reasonably possible from its investments, and spends its income (after the expense of administration) on the Charity’s Public Benefit Objects.

Equal Opportunities

The Trustees do not discriminate against anyone in respect of employment and the provision of services because of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.

Permitted Discrimination

The Equality Act 2010 allows a charity to limit its benefits to people who share what are called "protected characteristics" i.e. those who are entitled to be considered in respect of granting the benefits the Charity offers. In other words:

• the governing document restricts benefits to people with a shared protected characteristic i.e. relief in financial need and/or educational need, and

• the benefits are provided in order to ameliorate these particular disadvantages, or need, linked to that protected characteristic

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8. A SUMMARY OF WHAT THE CHARITY ACHIEVED IN 2022

A. Major Events/Decisions by the Trustees

• During the year building work was completed on creating 4 “affordable” flats for the homeless at “Inglethorpe Court” in the Hopmarket, the former Citizens Advice Offices. The

• Official Opening Ceremony was performed jointly by Robin Walker MP and the Mayor, Adrian Gregson. (See page 12)

Homes England committed a generous grant of £200,000 towards the total cost.

68 since 2013 This development took the total of new “affordable” flats for the homeless to making a grand total of 100 Almshouses.

The project is in memory of Richard Inglethorpe who left considerable property in his will of 1618 to build and endow the Charity’s first 6 almshouses.

The Hopmarket Charity kindly provided a new 125 years’ lease of the two buildings which they own, in return for a 25% share of the nett rental profits.

• Continuing the grants to 7 organisations , being those that the Trustees believe :-

• a) provide the most help to the poorest, in greatest need in Worcester : - Maggs Day Centre for the Homeless, Worcester Citizens Advice and Armchair (Furniture Re-Cycling), who have all been provided with free/subsidised premises and grants to assist with their work; and Worcester Community Trust towards their community centres and outreach work.

• b) provide free education in Worcester :- the Tudor House Museum, All Sorts of Performing Arts and DanceFest, the first two of which were also provided with rent-free accommodation.

• The Charity fulfilled a contract with the City Council to manage the purchase and distribution of white goods in Worcester worth £146,892 (2021 £152,813 net), as part of the Discretionary Welfare Assistance Scheme (“DWAS”). The Charity originally won the contract in 2013 and again in 2017, which has been rolled over three times until 2022. The Charity does not charge the Council for this project in recognition of the relief it brings to the Charity’s own grants’ budget.

• The Charity was advised by Platform Housing Association that they had decided to withdraw the use of their “Well-Being” fund for carpets which they handed back to the Charity with a £10,000 grant to assist.

• The Charity increased staff salaries by 3.5% and regular grants to charities by 4%.

• Extraordinary Repairs - The Charity owns and leases a considerable number of ancient properties with very high maintenance costs and in 2022 spent £376,018 on repairs to the two sites of retirement almshouses and to “The Old Glove Factory” and 59/60 the Tything.

B. Annual Revenue Income and Expenditure

Revenue income of £1,429,147 was received, mainly rent from properties, (2021 £1,488,443). Expenditure was £1,478,042 (2021 £1,333,273)

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C. Summary of Property Owned

• a) There are two Sheltered Housing “retirement” sites (32 almshouses) and ten “affordable Housing sites” (68 flats) for the single homeless.

• b) The Charity owns 16 Commercial Investment Properties with rental income.

• c) 6 "functional" properties are leased to charities on peppercorn rents as "facilities in kind" (see page 16)

D. Rent Reviews and Accommodation Charges

• Sheltered Housing accommodation charges were reviewed and scheduled rent reviews were completed.

E. The Grants Sub-Committee met 12 times in 2022

Education, Relief in Need, Hardship or Distress Grants

• (a) A constitutional grant of £954 was awarded by the Charity to the John Palmer’s Educational Foundation in Suckley.

• (b) The Grants Committee awarded relief in need and educational grants to organisations and individuals totalling £373,995 (2021 £364,441), and helped administer the City Council’s DWAS relief in need grants worth £146,892, (2021 £152,813 net), to individuals in need (details page 14).

• (c) In 2012 The Charity agreed to fund a Money Management Advice Post annually, based at the Citizens Advice Bureau which continues to provide excellent communication and grant administration between us in respect of mutual clients with financial problems. He also provides financial literacy advice. During 2021/2022 The Money Management Adviser interviewed 70 individual clients helping them to deal with 188 issues relating to benefits, energy/water bills, finances, employment and debt issues. The Local Citizens Advice Debt and Money Service also advised and assisted 921 clients, to reschedule or receive a ‘write off’ of debts amounting of more than £750,000 in total, across all their services.

• (d) In 2012 the Grants Committee ceased making grants for school uniform due to the Pupil Premium being paid to schools. Clothing grants for school children in need were however introduced, based on the family's income and expenditure, and their clothing needs.

• (e) In 2013 The Charity agreed to help fund a free Legal Advice Scheme annually in partnership with the Citizens Advice and originally the Worcester Law School, now the University, whose students provide supervised free legal advice to poor people. In 2021/2022 the project assisted 158 clients and the total financial gains obtained for clients as a result of this project, were in excess of £483,000, during the year. In addition, Citizens Advice Worcester assisted clients to obtain financial gains of £2 million from all Citizens Advice services delivered in Worcester. This greatly increased the ability of all the clients assisted to manage financially.

• (f) In 2022 the Committee awarded education grants of: £17,951 to DanceFest, £14,219 to All Sorts of Performing Arts, and £40,019, (50/50 Education and Respite for carers), to Worcester Community Trust providing educational facilities, youth clubs and holiday playscheme facilities in Worcester (see page 14)

• (g) The Committee also agreed to continue leasing the Tudor House Museum , to Worcester Heritage and Amenity Trust at a nominal rent, together with an annual grant of £37,615 to help pay the salaries of a part-time curator and part-time assistant.

• (h) The Committee awarded 2 grants totalling £1,670 (2021 £1,000) to individuals in need of financial assistance with their education (see page 14)

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9. ALMSHOUSES - AFFORDABLE HOUSING FOR THE RETIRED AND THE NON-RETIRED HOMELESS

The Charity owns two complexes of Retirement Almshouses:

• and

• (i) Berkeley Court, The Foregate - 7 flats

• (ii) Nash's and Wyatt's Court, New Street - 25 flats

The former Berkeley’s Chaplain’s house became the Charity’s administrative offices in 2013 and the former Nurse’s house became the resident warden's house at the same time.

The former Chapel was converted to a community/meeting room in 1997 and is available for use by charities and non-profit making organisations, usually without charge depending on their reserves’ levels not exceeding one year's income.

The residents' accommodation charges were reviewed in The Period. All bar one of the residents received Housing Benefit. In The Period three residents left and four were appointed.

Resident Part-time Wardens: Julie Fenson, continues to provide a very high standard of first line support and care-taking at Nash’s and Wyatt’s. We welcomed Darren Dodd to Berkeley Court who was appointed on 1st February 2022, with his partner Gillian. They have settled in well, and contributed very positively to the new shared wardens' service for the two sites.

Applicants for sheltered housing must be poor and must have lived in Worcester for at least 12 months. Retired or nearing retirement applicants are preferred, although applicants below retirement age are occasionally considered if they have a need for, and would benefit from, accommodation in a sheltered environment. The Charity advertises vacancies when available under “Accommodation Available” with the criteria.

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Berkeley Court, Foregate Street - 7 flats Nash's and Wyatt's Court, New Street - 25 flats
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General repairs and maintenance of the Sheltered Housing have been carried out throughout The Period. Testing and servicing of all gas appliances is carried out annually. Major capital repairs to the roof and refurbishment of Flats 1, 2 and 3 Berkeley Court have been completed. All 25 Flats at Nash's and Wyatt's had the walls insulated with foam.

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AFFORDABLE HOUSING FOR THE HOMELESS - 68 NEW UNITS IN NINE YEARS

There is a widely held belief that an “Almshouse Charity” is for the elderly only, but it’s actually for poor people of all ages. “Relief in Need” includes giving a home to the homeless to meet their need.

Since 2013 the Charity has been pursuing a re-investment strategy of providing affordable housing for the single homeless, and since 2015 has been helped by Homes England with grants to create flats “over the shops” and in empty office buildings. This is an exciting new strategy that provides housing for the homeless and also makes a reasonable commercial profit from a worthwhile charitable activity, at a time when good investment returns are difficult to find, and affordable flats for the homeless are in very short supply. We have been fortunate to find a good quality reliable builder.

By 2021 the Charity had 64 new units of “affordable housing” created since 2013. In 2022 four new units of affordable flats were added, taking the total to 68. All the properties are managed on the Charity's behalf by "SmartLets" (part of Citizens Advice) who retain 15% of the maintenance contribution payments as a management fee.

27 Existing Flats

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2013 - 9 Sansome Place
6 studio flats
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2017 - 15 St. Swithin’s
Street 4 bedroom HMO
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2014 - 16/17 St. Swithin’s Street
6 one bedroom flats
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2016 - 21 The Cross
3 one bedroom flats
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2017 - 19 Foregate Street 2017 - 59-60 The Tything
5 one bedroom flats, 1 studio 2 one bedroom flats on
flat & a shop/office the top floor
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12 Existing Flats

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2018 - Sir Thomas White Court
10 new one bedroom flats
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2019 - 8 Sansome Place 2 one bedroom flats. Property owned by the Charity since 2002 and used by Maggs as a “free clothes store” for street sleepers until 2017. The Charity replaced it with a city centre building also providing administrative offices, two flats for the homeless, then created two new flats in this old building.

25 Flats were created in 2020/2021

2020/21 - “Stillingfleet House” , 3-4 Shaw Street. 25 one bedroom flats were created in 2020/21 from this former Probation Office, owned by the Charity since 1994 and empty following the tenants’ departure as a result of the privatisation of half the Probation Service.

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The day of the Grand Opening of 4 new flats at Inglethorpe Court, The Hopmarket in memory of Richard Inglethorpe 1618

Plaque outside the entrance. Richard Inglethorpe, in whose memory the 4 flats have been named, was a wealthy benevolent brewer, who originally donated six almshouses to the Charity, now long since gone.

Pictured from left to right: Robin Walker MP. Paul Griffith MBE, Chairman of Trustees. Adrian Gregson, Mayor of Worcester.

The 4 flats were created from two ancient former warehouse annexes for the old Anderson and Virgo’s Chemists shop at 12 Foregate Street. When it closed down and became the Good News Shop, the warehouses became surplus to

The appointed architects for the building works were Lett and Sweetland, with builders D & S Contractors. The very high quality of the conversion and fitting out was generally the subject of much admiration on the day.

requirements and deteriorated over the years. They were landlocked, so repairs were problematic and they were taken over by pigeons. For a short time they were used as offices by Citizens’ Advice but were no longer needed after the Pandemic.

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68 flats created since 2013 plus 32 ancient almshouses brings the total of affordable flats for individuals to "100 not out".

Since 2013 the Charity has created 68 new “affordable” almshouse flats for the single homeless, for which it has raised the money by selling some commercial properties. Homes England then came in, and offered a generous grant of £200,000 which made the whole project immediately viable.

The photographs above are all of Flat 4 Inglethorpe Court. Top left 1st floor entrance. Top right Kitchen/Living area. Bottom left shower room and toilet. Bottom right bedroom with fitted wardrobes.

The Chairman's speech to the guests at the grand opening. Pictured from left to right Robin Walker MP Ron Rust, Trustee. Peter Sweetland retired architect. Philip Jones retired Surveyor. Paul Griffith MBE, Chairman of Trustees.

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10. GRANTS AWARDED IN 2022 BY THE CHARITY

RELIEF IN NEED AND EDUCATIONAL GRANTS

Grants determined by Constitution	Grants determined by Constitution	£
Palmer’s Educational Foundation		954*
0.1% of the Charity’s “clear” income or £950 whichever is the greater
"REVENUE" GRANTS TO ORGANISATIONS		£
Allsorts of Performing Arts	Running Costs	14,219*
Armchair furniture recycling	Running Costs, free furniture - means tested	16,640
Citizens Advice	Running Costs, advice, support, legal aid	180,316~
Dancefest	Dancing lessons, (social housing areas)	17,951*
Maggs Day Centre	Running Costs, day centre, clothes, training	30,830
Shopmobility	Running costs, (frozen, as not means tested)	7,000
Worcester Community Trust	Holiday play schemes (social housing areas)	40,019*#
WHAT Tudor House Museum	Curator and Learning Ofcer salaries	37,615*
		Total £345,544

• Educational grants

50/50 relief in need and education.

~ Citizens Advice core support costs £108,778 - 60%; legal aid project £31,387 - 17.5%; money advisor £35,430 - 20%; ethnicity training & language (education) £4,721 - 2.5%;

INDIVIDUAL GRANTS	£
Education grants	1671*
Relief in Need, Carpet Grants and other under £1000	26,271
Relief in Need Grants for white goods under £1,000	509
	Total £28,451
The Charity's Grand Total (excluding DWAS)	£373,995
DWAS Relief in Need grants under £1,000 for white goods	(net) £146,892
The grants included educational grants and the following essential household and personal
items:Carpets, Washing Machines, Cookers, Fridges, Fridge Freezers, Clothing	Grants,
Removal Costs, DRO costs, Fencing and “other household items”

Grand Total £520,887

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WORCESTER MUNICIPAL CHARITIES (CIO) GRANTS POLICY

11. Grants for “Relief in Need” and to “Promote Education for Individuals in Need”

General Policies & Practices - Advice for Support Workers & Applicants:

It is the Charity's policy not to make a grant if adequate funds are available from:

1. Family/Friends

2. DWAS for white goods - www.worcester.gov.uk/discretionary-welfare-assistance-scheme

3. DWP for a Budgeting Loan - www.gov.uk/budgeting-help-benefits/how-to-claim

4. Health Authority for disability aids - www.hacw.nhs.uk/services/service/wheelchair-posture-mobility-service-93/

5. County Council for child care and family services - Worcestershire Children First www.worcestershire.gov.uk/info/20501/children_young_people_and_families

6. Student Finance England for promotion of education - www.gov.uk/apply-for-student-finance/how

The application form must be endorsed to show that all 6 options have been considered and with what result. Failure to do so will mean the application will be deferred to enable these enquiries to be made.

The Grants Committee will consider the income and expenditure sheets of each applicant and their ability to meet their own needs, with budgetary assistance from Citizens Advice Worcester if required.

Applications may be turned down if the applicant has not demonstrated financial hardship, or is seriously mismanaging his/her income by spending excess amounts on luxury items like “Sky TV” rather than on necessities like food and clothes. Individual budgetary advice may be provided by the Citizens Advice Money Adviser in such cases.

To consider, as a condition of any grant to an individual, the possibility of debt advice, usually with help from Citizens Advice Worcester.

Not to commit the Charity to repeat a grant to an individual or organisation.

The Trustees reserve their complete discretion in all cases.

GRANTS FOR RELIEF IN FINANCIAL NEED

Can be considered for people living in Worcester City only.

All applications from an individual for a relief in need grant must be endorsed by a support worker from the statutory or voluntary bodies in Worcester, using the forms available on the Charity’s web-site. The support workers are relied upon to provide to applicants such additional help that the applicant may require e.g. in respect of their vulnerability and other needs.

One-off grants can be considered for “essential” items like cookers, fridges, fridge freezers, washing machines, clothes airers, food, clothes, fuel bills, carpeting, a television, a vacuum cleaner, other household items; in exceptional circumstances help may be considered for holidays or holiday activities.

The Trustees judge as “essential” those items that people generally nowadays feel they cannot manage without, and that form part of an expected way of life in today’s society. The Charity is a last resort and is unable to help if there is statutory assistance available.

GRANTS TO PROMOTE EDUCATION

Can be considered for people in need, of any age, living in Worcester City, the Parishes of Powick, Bransford and Rushwick, and the Ancient Parish of Leigh.

Applicants for educational grants do not need a support worker but references/reports may be requested from the institution concerned.

Applications may be considered from people of any age who live outside these areas but who have attended school in the City for at least two years.

The Trustees will not normally consider applications from persons attending educational establishments in the City who, prior to enrolling, lived outside these areas for two years or more, and/or who still live outside them.

The Trustees will not normally consider applications from persons attending educational establishments with national catchment areas e.g. the New College (for the blind) and Worcester University, unless they were resident in the area of benefit for at least two years, or attended school in the area of benefit for at least two years, prior to enrolling at the relevant institution.

Applications in respect of fee-paying institutions, for travel abroad, and awards beyond 1st Degree level are normally excluded.

Assistance with school uniform grants is not provided in the light of the Government’s Pupil Premium payments to schools for such purposes. Any requests for non-distinctive clothing may be considered for a “relief in need” grant based on family income and expenditure.

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WORCESTER MUNICIPAL CHARITIES (CIO)

12. A SOCIAL INVESTMENT PROGRAMME – 1996 Onwards

Free use of the Charity’s property facilities in 2022

Since 1996 the Charity has been sponsoring subsidised office accommodation for like-minded City charities who are helping the poor or providing free education or educational facilities in areas of social need and at Tudor House Museum.

The Charities SORP (FRS 102) requires that facilities and services donated to a charity for its own use which it would otherwise have purchased must be included in the Charity's accounts when received, provided the value can be measured reliably. Value to the beneficiary Charity is the amount that the Charity would pay on the open market for an alternative item that would provide a benefit to the Charity equivalent to the donated item. Worcester Municipal Charities (CIO), as the donors of these "facilities" to the charities concerned, have estimated the rental values based on 8% of their capital value as contained in the Quinquennial Valuation of 2020 as follows, with the exception of leasehold properties which have been estimated individually based on the advice from their Chartered Surveyors, and any actual bills paid in “The Period.” They will be revalued in 2025.

No.	PROPERTY - LET ON A PEPPERCORN TO:	Capital	Rental Value
20	Armchair 6B Checketts Lane Trading Estate	Leasehold	Paid up front
	50 years lease from 1996 bought on premium
40/41/42	Old Glove Factory, 13 & 15 Lowesmoortotals	[£850,000]	[£68,000]
	Old Glove Factory, 13 & 15 Lowesmoor
	Citizens Advice(68% of £68,000 total)		£46,240
43	St. Albans, Deansway(150 years' leasehold 2008)	£50,000	£4,000
	Maggs Day Centre
44	Tudor House, Friar Street (125 years' leasehold 2008)	£100,000	£8,000
	WHAT. Lease £1.00; £1,000 p.a. insurance paid.
46	Medway Youth & Community Centre	£75,000	£6,000
	All Sorts of Performing Arts
	(50 years leasehold from the City 2012)
53	Maggs Clothing Store, Activity Centre Ofces and Shop 59/60 the Tything	£250,000	£24,000
	Total facilities in kind provided in this period:		£88,240

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PROPERTIES IN OWNERSHIP, PURCHASED AND/OR REFURBISHED AS PART OF THE SOCIAL INVESTMENT PROGRAMME

From 1996 onwards, the Trustees began investing some of the “surplus” accumulated income from new rents, to purchase property for social community projects that benefited the poor. The thinking then was that other charities that were in the same business of helping poor people, but had no income of their own, would welcome such a boost, and a secure rent-free base would be attractive to their potential funders.

Relief in Need - the programme eventually encompassed the major Worcester charities providing financial relief in need for the City’s poorest e.g. Citizens Advice Worcester, Armchair Furniture Recycling, and the Maggs Day Centre for the Homeless. CAB and WHABAC, two of the Charity’s major beneficiaries, merged on April 1st 2009. The development of both, especially their office moves to suitable rent-free premises, was due mainly to the Trustees’ support and generosity.

Both Maggs and Armchair also enjoyed rent free premises and annual grants and still do.

Educational facilities , provided rent-free, consist of the Tudor House Museum (WHAT - Worcester Heritage & Amenity Trust) and Medway Youth and Community Centre (All Sorts of Performing Arts). The Charity is obliged by its constitution to spend c.12% of its net income on educational provision.

1996 - Berkeley’s Chapel was refurbished at a cost of £150,000 as a Community Centre and Meeting Room. The Chapel was virtually derelict and almost unused. Once the Civic Society’s radical objections had been overcome, Martin Jones oversaw the tasteful conversion with Proberts as the builders. The refurbished Chapel is now used for almshouse residents’ meetings, Trustees’ meetings, and community meetings, and is offered rent-free to Worcester charities providing they have less than one year’s running costs in reserve.

1996 - Goodrich

House , Sansome Place, Offices & Car Park was purchased for Home-Start and refurbished at a total cost of £150,000 . The building then known as “Saga House”, previously “AEU Offices” was renamed after Margaret Goodrich (The Home-Start President) and was then used until 2014 when cuts in County Council funding led to the Charity being down-sized and moving to their own premises in Malvern. Terms were agreed for the surrender which took account of the un-expired lease, and the offices and car park site were then converted to 10 flats for

the homeless in 2017/18 and re-named “Sir Thomas White Court” with 4 of the flats in the former Home-Start office and 6 are new-build on the car park.

1996 – Armchair , 6b Checketts Lane Industrial Estate. The WMC Charity purchased 6a and 6b mainly to provide a learning disability day centre at 6a for the County Council. However 6b was offered to Armchair to enable them to move out of an expensive leaky rented warehouse in Back Lane South. Armchair was successful in getting a Lottery grant and purchased a 50 years’ lease from the Charity for £55,000, which means no more rent until 2048 when the Trustees will probably charge £12 a year.

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1998 - Citizens Advice Worcester – A donation of £100,000 was made towards the planned new-build offices in The Hopmarket. The proposal looked unachievable until the Charity stepped in, awarded the grant and then helped to construct a Big Lottery application which yielded a further £304,000. Peter Sweetland, the Charity’s architect, drew the plans and organised the construction, including overcoming very difficult access problems. The new building opened in 2001.

2000 - 1 & 2 Inglethorpe Court in the Hopmarket Yard behind Citizens Advice were leased from the Hopmarket Charity for 50 years in 2000 at £1 a year. This was in recognition of its derelict, landlocked state, and the need for the Charity to expend c. £150,000 to gain access, refurbish and sub-let it to Citizens Advice for use as two offices. By 2021 they were no longer needed and the sub-lease was surrendered. As they could not be let commercially, due to a lack of parking, the Trustees considered refurbishing them for use as 4 “affordable” flats for the homeless. A partnership was then formed with the Hopmarket Charity to undertake this project jointly, with the Hopmarket receiving 25% of the nett rents, instead of the £1 year, in return for agreeing a new 125 years’ lease being granted, this being the shortest period acceptable to Homes England for grant aid. Planning consent was granted and a successful grant application was made to Homes England. The work was completed in 2022 including an outside staircase between the two buildings to allow separate access to the upstairs flats in both buildings. The new flats were officially opened on 13th

January 2023 by Robin Walker MP and Adrian Gregson, Mayor of Worcester.

2002 - 8 Sansome Place , a free Clothing Store for street sleepers and people in need was purchased for £73,437 from the private owner, when the WRVS (tenants) decided to close it down due to a policy change. The Worcester Salvation Army offered to run it as a free clothes store and were given a £1 a year lease. They unfortunately sub-let it, without permission, to the Worcester City Mission (“Lydia Project”) who began gradually turning it into a church, holding services there, and selling donated clothes to fund the religious Mission, rather than helping the poor. They were evicted and it was then offered to Maggs in 2005 who ran it as a clothes store etc., for street sleepers and others in need. However, in 2017 the Charity purchased 59/60 The Tything as a replacement for Sansome Place and their leased office at 7 Copenhagen Street which was surrendered. 8 Sansome Place was then converted to 2 flats for the homeless in 2019.

2004 - “The Old Glove Factory” 13-15 Lowesmoor, a large derelict building with two shop-fronts, was bought for £368,500 from the Catholic Church after a 3 years’ wait. It was refurbished imaginatively by Lett & Sweetland in 2005/6 at a cost of £1 million , and initially let to Worcester Housing & Benefits Advice Centre, Ethnic Access Link, Headway and the Black Pear Credit Union, all at heavily subsidised rents. The official opening by the Princess Royal took place on 7th February 2007. WHABAC and CAB had merged in 2009, and in 2018 were renamed “Citizens Advice Worcester”. Headway, the Black Pear Credit Union and Ethnic Access Link left, and the two street facing shops were let commercially in 2018. Citizens Advice

Worcester now occupies the rest of the building on a peppercorn rent of £12 p.a.

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2008 - Tudor House Museum , Friar Street. In 2004 John Bennett and Jim Panter, Trustees from WHAT (Worcester Heritage & Amenity Trust) approached the Charity in respect of a possible partnership, to acquire the Museum on a sustainable and affordable basis, with WHAT running it, mainly with the help of volunteers. The Trustees agreed to investigate the possibility and Philip Jones then negotiated an agreement for a 125 years’ lease from the City Council at a premium of £100,000. The Charity then sublet the Museum to WHAT, initially on a 35 years’ lease for £1 p.a., with £1,000 towards the repairs’ sinking fund. The Charity also makes a generous contribution annually towards curator and learning officer staff costs and has committed £4,000 p.a. to a repairs’ and refurbishment sinking fund.

The building has been adopted by the Worshipful Company of Clothiers as its home base.

2009 - St. Albans, Deansway, the Maggs Day Centre for the homeless , received an ill-conceived demand for a commercial rent of £10,000 p.a. from the Diocesan Board of Finance intended for the clergy’s pension fund. This unfortunate episode followed a rent free period in return for putting the neglected building in a good state of repair some 30 years earlier. On hearing the possible plight of the homeless service users, the Charity stepped in, suggested the Diocese seemed to have lost sight of its own obligations to the poor, offered to buy the freehold but was turned down. The Charity then asked their valuer Philip Jones to try to negotiate a compromise agreement, and he secured a 150 years’ lease at a cost of £47,500 . It was then sub-let to Maggs by the Charity for £1 a year until

2030 when it will be

renewed for the remainder of the head lease until 2159.

2011 – The 18th Worcester Scout Hut and Youth Club (Medway Youth & Community Centre) was purchased for £1.00 from the Scouts who had been wound up. The Charity then acquired a new 50 year lease from the City Council who own the land. It was refurbished at a cost of £30,000 to make sustainable youth and community provision for Lower Ronkswood, and is now housing All Sorts of Performing Arts as the peppercorn rent tenant.

2017 - 59/60 The Tything was purchased for £305,000 in 2016 by the Trustees for use by Maggs as administrative offices, with a free clothes shop for the poor/homeless, and a domestic training centre for day centre service users. There are two flats upstairs for the homeless (modernised with help from a Homes England grant) and managed by SmartLets. The purchase allowed the Charity to surrender a leased Maggs office at 7 Copenhagen Street, and also released the old existing “free clothes” store at 8 Sansome Place for conversion to two flats for the homeless in 2019. The whole project cost c. £500,000 . In 2020 an extensive dry rot infestation came to light and its eradication proved difficult and expensive.

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13. THE CHARITY’S STRATEGIC OBJECTIVES, INVESTMENT POLICY & REVIEWS

Put simply, these are to fulfil the registered charitable objectives for people in need, by using income from its annual funds, investments and properties to provide the income to the “best advantage”, inter alia, by ensuring the process involves “value for money” principles.

The Charitable Objectives

• (a) the relief of persons resident in the City of Worcester who are in conditions of need, hardship or distress including by making grants of money to individuals, or to organisations which provide relevant services; or providing or paying for items, services or facilities calculated to reduce the need, hardship or distress of such persons;

• (b) to carry on for the benefit of the community the business of the provision of social housing in the form of almshouses and affordable social housing and any associated amenities for persons in necessitous circumstances upon terms appropriate to their means; and

• (c) the advancement of education by promoting education in the area of benefit being the City of Worcester, the Parishes of Powick, Bransford and Rushwick, and the area of the Ancient Parish of Leigh, all in the County of Worcestershire, in such ways as the Trustees think fit.

• (d) Twelve per cent (12%) of the Net Income of the CIO from its permanent endowment assets shall be applied for the educational purposes set out in clause (c).

Raising the Money to Spend on the Charitable Objectives

The purpose of the Charity’s financial investment is to yield the best return possible within the level of risk considered to be acceptable. There is a legal requirement to review investments from time to time and to diversify investments.

The Charity’s annual income is composed almost entirely of rents from its commercial properties , - comprising shops, offices and warehouses, and from its two types of “affordable social housing” almshouses for retired people (32 units), and almshouses for the non-retired homeless (68 units).

Strategic Changes of Investment from 1985 Onwards

In the 1980s - the Charity’s endowed property comprised principally farms, farmhouses, cottages, and farmland, across Herefordshire and Worcestershire, together with a small amount of commercial property in Worcester.

The first major change was to charge a fair rent available from Social Security for the 32 retirement almshouse residents who were living rent-free. This produced additional income of £100,000+ a year.

Following an investment policy review in the late 1980s, and after a meeting with the Charity Commission in Liverpool, the Trustees began a wholesale, gradual transition from agricultural to commercial investments, including the gradual sale of all the agricultural holdings. This went smoothly with most farms being purchased by the tenants, many of the families having been in occupation for more than 100 years.

Between 1990 - 2012, building on that initial success, the Charity continued selling the farms, and also disposed of all its stock-market holdings and reinvested that money also in commercial property, with similarly improved returns. These two major policy changes effectively quadrupled the Charity’s rental income and proved wholly successful for about 25 years, allowing more money to be spent on the beneficiaries, and providing grants, sponsorship and rent-free buildings for like-minded Worcester charities helping the most needy.

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2012 onwards, as the High Street recession began to seriously affect the viability of the commercial shops and the larger offices, the Trustees began reviewing their investment policies and looking at alternative forms of investments given the low interest rates which were still falling.

The Trustees’ review concluded that the reinvestment policies that had been pursued following the 1980s review, were effective, and were the best that could be devised at the time for the Charity and its beneficiaries, both short and long term. However, the buoyant days of the High Street shops and city centre offices were clearly on the wane; the bubble was bursting and new sustainable strategies were becoming urgent. As a result, when offices became vacant they were either sold, or converted into flats for the homeless. Flats were also created over the charities’ own shops where possible, with reduced rents for the shop-keepers below helping sustain their financial viability.

“Programme Related Investment”

In 2013 the Trustees decided to adopt this Charity Commission recognised definition for when a charity “uses assets to directly further the charity’s aims, whilst also generating a financial return”.

The money to invest was raised from the sales below, and from the grants from Homes England which speeded up the whole process enormously, and also enabled the Charity to continue financial support and provide rent free offices to four other Worcester charities who were helping those in greatest need in Worcester.

• 2013 – 2018 Eight Properties Sold - Eight commercial properties and land were sold for £2,114,100.00 and the money was invested in affordable flats for the homeless.

• 2017 – 2019 Four Properties Converted - Four properties were converted into affordable flats for the homeless including the old Probation Offices (25 flats) and the former Home-Start offices (10 flats).

• 2017 – 2018 Social Investment Property Let – The two shop fronts of the “The Old Glove Factory were let commercially, producing a rent gain of £15,740.

• Grants from Homes England totaling £1,730,000 were obtained after the Charity had registered as a private not for profit Housing Association in 2016.

In 2018 the Charity reviewed its Investment Policies and Procedures, and reported its findings to the Board at its January 2019 meeting. The Report demonstrated that the reinvestment strategy was both sustainable and diverse and, in particular, replaced the lost income of £150,000 from the 2018 vacation of the Shaw Street offices with income from the 25 new affordable flats for the homeless. The alternative option to sell the building for development would have realised only about £500,000 to invest, which represented a huge potential loss to the Charity and its beneficiaries. The Trustees believe they have made the best of a bad job, brought about through circumstances entirely beyond their control.

Investment Returns Analysed

Between 1985 - 2018 the Charity recorded its income carefully, and the headline results are that the earned income from investments rose by an average compound increase of 6.35% every year compared to a UK average of 3.54%. A major factor in this very favourable financial result has been the longstanding policy decision to accumulate unspent contingency money of up to 10% on property investment each year, by saving it up gradually until more property can be afforded without borrowing. However this policy has been put on hold following the departure of the Home Office as tenants of Shaw Street, with a subsequent loss of rental income of £150,000 annually. This required funding the refurbishment of 3-4 Shaw Street into 25 flats at a cost of £2.2 Million, towards which Homes England contributed £1 Million. However within two years the new rents had passed the previous level.

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Routine Almshouse Maintenance

Between 1899 and 1985 the Charity “lost” 32 of its original 64 retirement almshouses. This was due entirely to a lack of routine maintenance, which was caused mainly by a policy decision not to charge rent, even when Social Security/Income Support first became available through the Beveridge reforms in the late 1940s. Almshouse properties decayed and were sold for development or modernisation, or were demolished as they became uninhabitable, and the sites were sold.

In 2018/19 the Charity monitored the cost of maintaining the 27 affordable homelessness almshouses then being let, and it produced a figure of £735 plus a 15% management fee of £750 for SmartLets, part of Citizens Advice, who support a “difficult to manage” group of residents on licences to occupy. A figure of £1,000 was applied to all 39 units in the 2019 budget which proved sufficient.

Based on advice from the Almshouse Association, the routine maintenance figures for the 2022 budget were set at £1,518 for each of the 32 retirement units, and £1,190 for each of the 68 homelessness ones which have proved adequate.

Cost comparisons with other housing associations are problematic without detailed reports on the age and present state of repair of their entire housing stocks.

Commercial Properties

and The Returns on the “High Street” Commercial Properties of shops and offices are static, do present a very real challenge. Where street access is possible, turning the upstairs into flats for the homeless has proved successful, but it’s hard to find another economic way forward. There are two charity shops let on beneficial rates which seem to be afloat, but in reality only those “shops” like hairdressers, beauty salons, shoe repairs and food shops are surviving, as none of them have to compete with on-line sales. However, the butcher’s shop in St. Swithins Street is easily the best and most popular in town, and looks set to continue its success.

The rent reviews due in 2022 were largely settled on a stand-still rent basis, apart from the retirement almshouses for which the Charity was entitled to CPI + 1%. The homelessness almshouses were also entitled to similar inflationary increases.

Most of the commercial shops are in a single street, the lower part of which has been dubbed “Charity Alley”. However it does have a wonderful footfall, as it provides the main pedestrian route to “The Shambles” and the new Asda further down. Like other landlords in a similar position, the Charity can only wait and see what happens, and in the meantime, when the opportunity arises, and it's feasible, diversify into residential property for the homeless.

The Board regularly reviews its investment strategy and almshouse maintenance strategy, including consideration of where savings might be made, for example by installing solar panels and water meters both of which have been done.

Tendering Policy for Capital Projects – Threshold of £500,000

In 2013/14 the Charity sought competitive tenders for the development of Sir Thomas White Court into 10 affordable flats for the homeless and appointed D & S, the chosen contractors as “preferred providers.” It was agreed that in future the preferred provider would be used for all work under £500,000 but their tenders would be checked regularly.

The Charity also has in place preferred providers for water, electricity, general maintenance and carpentry.

Future Investment Plans

There is no real shortage of retirement facilities for the elderly in Worcester; commercial high street shops and offices are on standstill rents. Any new capital, if it can be matched by Homes England grants, will be directed towards affordable flats for the single homeless.

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Homes England - Value for Money Metrics

Each year the Charity uses a range of data to measure VFM progress. The results help influence investment decisions and provide regulators and other stakeholders with information on the progress of the Charity.

Metric	2022	2021	Commentary
Reinvestment percentage	4.82%	10.3%	This is the cost of development and/or acquisition of new or existing housing properties as a percentage of the value of the ones already owned.
Percentage of new supply delivered	4.17%	26.04%	This is the number of social housing units developed or newly built during the year as a percentage of the number of social housing units held at the year end.
Social housing cost per unit	£6,379	£6,327	This is the total cost of ownership and management of social housing units divided by the number of units owned and/or managed.
Operating margin as a percentage (social housing)	-7.70%	-33.83%	The operating margin on social housing activity only i.e. total social housing income minus total social housing expenditure, expressed as a percentage of total income. This year major refurbishment works have been undertaken at Berkeley Court.
Overall operating margin	-3.42%	10.62%	Overall operating margin i.e. total income minus total expenditure of the organisation, expressed as a percentage of total overall income.
Return on capital employed (ROCE) as a percentage	-0.37%	1.06%	This is the overall operating margin divided by (total assets minus current liabilities).

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14 . THE COST OF ADMINISTRATION & GOVERNANCE

The more a charity earns, and the less it spends on administration, the more there is available for direct charitable expenditure and grants. The Trustees therefore remain anxious to ensure that there is no unnecessary waste on administration.

Every effort is made to keep the cost of administration to a minimum. The Trustees themselves do not claim expenses. However, with 22 Trustee meetings, two property inspections a year and the inevitably high cost of servicing a number of individual applications for assistance, there is an inbuilt unavoidable administration cost. In the Period the Charity spent £6,904(0.46%) (2021 £6,285) (0.4%) of gross income on Governance and £105,698 (7.15%) (2021 109,993) (7.4%) of gross income on Administration.

15. QUINQUENNIAL PROPERTY VALUATIONS

In 2010/2015/2020 the Trustees commissioned Quinquennial Property Valuations. The Commercial Properties were valued by Guise Jones Sawyer, and their successors GJS Dillon, and the agricultural properties by ARC Surveyors. The “Functional Properties”, occupied by the Charity and others with similar objects, were also re-valued based on vacant possession. The results were 2010 £13,776,750 2015 £13,880,000 , and 2020 £14,532,000 .

16. PROPERTY INSURANCES

In 2010 the Trustees commissioned a complete revaluation of property insurance including accurate rebuilding costs and loss of rent calculations. The insurers are still Ecclesiastical Insurance Office Plc, arranged through Hazleton Mountford Ltd.

17. EXTRAORDINARY REPAIRS COMMERCIAL PROPERTY & ALMSHOUSES

2022 has been a challenging year for extraordinary repairs with a number of unusually expensive items. These have included major repairs to the 18th Century Almshouses Roof and refurbishment of Flats 1, 2 and 3 Berkeley Court ; a dry rot outbreak and dangerous stonework at 59/60 the Tything, which includes two flats for the homeless; Maggs’ offices, their free clothes store, and administrative offices, causing major disruption; in addition the “North Light” Roof at the Old Glove Factory required replacing. All in all £376,018 has been spent in 2022.

Replacement roof and refurbishment of Flats 4 and 5 Berkeley Court and the refurbishment of two Flats at Nash’s & Wyatt’s Almshouses are planned for 2023.

All of this work has been, or with scheduling, can be, contained within the Reserves Budget.

----- Start of picture text -----
New Roof and Restoration of
Before
Flats 1-3 Berkeley Court
----- End of picture text -----

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18. RESERVES POLICY AND FINANCIAL RISK ASSESSMENTS

In 2010 the Trustees reconsidered their reserves policies and decided to set aside reserves on an “ad hoc” basis when required e.g. for a capital programme, and extraordinary repairs. Routine maintenance comes out of the annual budget. Each year until 2018 a contingency sum up to 10% was set aside by the Charity in its annual revenue budget for unforeseen expenditure. Any unspent contingency money was transferred to the reserves to purchase new investment properties when sufficient was available, to help the Charity at least keep pace with inflation.

Until 2018 this process brought the Charity compound inflationary increases of 6.35% p.a. compared to the national average of 3.54%. The practice ceased in 2020 due to the need to spend £2.2 Million on creating 25 flats in 3/4 Shaw Street when it was also agreed to borrow £500,000 to help the cash flow until the new rents arrived. In 2021 the arrival of the funds from the sale of the field at Welland was a timely and welcome addition.

However, since 2021 the Charity’s increases in annual income at c. 1%, have failed significantly to keep pace with the high inflationary national increases. No new property has been purchased due to insufficient capital funds available, which has resulted from the huge outgoings on refurbishing Shaw Street for residential use, the large capital payments for repairs to Castle House, the Old Glove Factory, 59/60 the Tything, and the retirement almshouses at Berkeley’s and New Street.

Stillingfleet House, 3-4 Shaw Street, Official Opening of 25 Flats - 2nd July 2021

The Assembled Board of Worcester Municipal Trustees

----- Start of picture text -----
The Refurbished Georgian Buildings
----- End of picture text -----

Inflation 1985 – 2021

Due to the reinvestment of agricultural property in commercial property, the income in 2021 rose from £127,000 in 1985 to £1,082,768 in 2021 - an average compound increase of 6.13% annually. This compares with the Bank of England average annual inflation figure for the same period of 2.6%. Using the Bank of England’s figures, income in 2021 would have become just £319,970.

The total funds of the Charity as at the year-end amounted to £14,773,341 (2021 £14,893,637), consisting of restricted funds of £9,772 (2021 £2,764) and endowment funds of £12,853,647 (2021 £12,918,912). Designated funds, which are funds set aside by the Trustees for future projects amounted to £80,141 (2021 £24,624), leaving unrestricted funds amounting to £1,829,781 (2021 £1,947,337).

Free reserves after making allowances for tangible fixed assets and investment properties amounted to £351,152 (2021 £731,109). “New Risks” form the first agenda item for all Board meetings.

19. STAFF REMUNERATION

The Trustees review the pay of all paid staff and self-employed staff at the January meeting of the Board each year and generally, subject to affordability, increase salaries of both groups after considering UK CPIH inflation.

20. SERIOUS INCIDENTS

The Trustees confirm that in The Period ended 31st December 2022 there were no “serious incidents” to report.

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21. THE CHARITY'S PROPERTY PORTFOLIO FOR THE PERIOD

	ADDRESS	PROPERTY	AQUIRED	AQUIRED	AQUIRING	TENANT/OCCUPANT
					CHARITY~
1.**	2 St Swithin's Street	Shop		1560	St Thomas's Day	Timpson Ltd
2.**	3 St Swithin's Street	Shop		1560	St Thomas's Day	Miss Sarah Johnson
3.	15 St Swithin's St, Ground Floor	Shop + 1st foor room		1560	St Thomas's Day	M & M Meats (Nelmes Family)
3A.	15 St Swithin's Street	4 Social Housing Units		1560	St Thomas's Day	Citizens Advice 4 HMO Residents
4.	1 The Cross	Bank		1618	Inglethorpe's	National Westminster
5.	16 St Swithin's St, Ground Floor	Shop		1618	Inglethorpe's	Headway
6.	17 St Swithin's St, Ground Floor	Shop		1618	Inglethorpe's	SCOPE
6A.	16/17 St Swithin's St, Upper Floors	6 Social Housing Units		1618	Inglethorpe's	Citizens Advice 6 Residents
7.	Nash's & Wyatt's Court	25 Social Housing Units		1661	Nash's	25 Residents
8.	25 Nash's & Wyatt's Court	1 Flat		1661	Nash's	Warden's Flat
9.	13 Nash's & Wyatt's Court	Community Room		1661	Nash's	Residents
10.*	Berkeley Court	7 Social Housing Units		1692	Berkeley's	7 Residents
11.*	Kateryn Heywood House	Charities' Ofces		1692	Berkeley's	WMC & Laslett's Charities
12.*	Berkeley's Chapel	Community Room		1692	Berkeley's	Residents & charities
13.*	The Gatehouse, Berkeley Court	Warden's House		1692	Berkeley's	Warden's House
14.*	The Cellar, Berkeley Court	Electricity sub-station		1692	Berkeley's	Western Power Distribution
17.	22 The Cross, Ground1st, 2nd & 3rd	Shop & Flat		1990	WMEF	Mr Spyros Tsangarakis
18.**	3 - 4 Shaw Street	25 Social Housing Units		1994	WCMC/WMEF	Citizens Advice 25 Residents
19.#	6A Checkett's Lane Ind. Est.	Ofces		1996	WCMC	Ocean Blue
20.#	6B Checkett's Lane Ind. Est.	Furniture Store		1996	WCMC	Armchair
21.	Castle House, Castle Street	Ofces & Car Park		1997	WCMC	Cranstoun
22.	20 Church St, Evesham	Charity Ofces		1997	WCMC	Evesham & District Mental Health
27.	Sir Thomas White Court	10 Social Housing Units		1997	WCMC	Citizens Advice 10 Residents
28.#	1 & 2 Inglethorpe Court	2 Social Housing Units		2000	WCMC	Citizens Advice 4 Residents
32.	Crown Lane Wychbold 1	Warehouse, Ofces & Carpark 2000			WCMC	Worcestershire CC
33.	Crown Lane Wychbold 2 & 3	Wheelchair Clinic & W'shops 2002			WCMC	Worcs. Health & Care NHS Trust
37.**	8 Sansome Place	2 Social Housing Units		2002	WCMC	Citizens Advice 2 Residents
40.**	Old Glove Factory(13 Lowesmoor)	Expertan		2006	WCMC	J Fiedorowicz & K Kumorowski
41.**	Old Glove Factory(13A, B)	Ofces		2006	WCMC	Citizens Advice
42.**	Old Glove Factory(15 Lowesmoor)	Shop		2006	WCMC	Sorin Pop
43.AM#St Albans, Deansway**		Day Centre for the homeless 2009			WCMC	Maggs Day Centre
44.**s#	Tudor House, Friar Street	Heritage Centre /Museum		2008	WMEF	WHAT
46.#	Medway Road Community Centre	Ofces, Youth Club, Hall		2012	WMEF	All Sorts of Performing Arts
48.**	9 Sansome Place	6 Social Housing Units		2013	WCMC	Citizens Advice 6 Residents
51.**#	21 The Cross	3 Social Housing Units		2014	WCMC	Citizens Advice 3 Residents
52.**	19 Foregate Street	Ofce		2015	WCMC	Dawn Salter, Gentle Changes
52A**	19 Foregate Street	6 Social Housing Units		2015	WCMC	Citizens Advice 6 Residents
53	59/60 The Tything	Charity Shop & Ofces		2016	WMC (CIO)	Maggs Day Centre
53A	59/60 The Tything	2 Social Housing Units		2016	WMC (CIO)	Citizens Advice 2 Residents
*** = Grade I Listed ** = Grade II Listed s = Grade II* Listed AM = Ancient Monument							£

*** = Grade I Listed ** = Grade II Listed [s] = Grade II* Listed AM = Ancient Monument

# Leasehold - Properties are freehold except 19, 20, 28, 43, 44, 46 & 51

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22. CONCLUSION AND COMMENT

• a) The ancient trusts now managed as Worcester Municipal Charities (CIO) were largely founded between 1559 and 1899, and originally came into being to provide almshouses, pensions, financial help for the poor, and education for the poor.

• b) A brief ancient history of the Charity and the Chapel is published. Please visit the web site or ask at the office for a copy.

• c) “While the World Endureth” a major history of the Charity since 1559 was published in 2020 and can be purchased from the office or viewed on the website.

d) In the 20th Century , after the creation of the Welfare State in the 1940s, the work of charities was realigned to fill some of the gaps left. Charities were free to concentrate on innovation - new work that, if successful, would probably eventually be taken over by the State, whose welfare provision was increasing year by year. Charities looked for the small “gaps” left by the Welfare State and filled them.

e) Housing Benefit, State Pensions and Income Support brought by far the biggest change in the administration of Almshouse Charities as they meant that the money originally endowed for the provision of rent-free housing and pensions for residents became available for other purposes e.g. grant making and social investment.

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• f) However, in the 21st Century the State began rolling back its traditional boundaries of support for citizens and spending less each year on welfare. Work, originally taken off charities, is now being handed back by the Health and Social Services in the wholly unrealistic expectation that it can all be done by volunteers, without any need for paid staff to recruit, DBS check, train, organise and support them. This strategy seems doomed to fail, and is already leading to the collapse of charities that were created during better financial periods.

• g) In 2013 the Government “Social Fund” which provided help to poor people in an emergency was all but wound up, and replaced in Worcester by the DWAS (Discretionary Welfare Assistance Scheme). The Charity agreed to act as agents for the Scheme and in 2022 bought white goods to the value of £146,892 thereby greatly reducing the number of grants requested from the Charity itself. The Charity won the tender to help continue the DWAS scheme until 2022 which has since been rolled over.

• h) In 2014 Home-Start lost its County Council funding and was forced to dramatically down-size, relocate and rely wholly on its reserves to survive.

• i) In 2016 Worcestershire Lifestyles and ASHA were both forced to close due to a similar loss of County Council funding.

• j) The Country does seem to be on a retrograde journey, back to the old Victorian welfare values of “help yourself or go without, try the food banks or charities”. The pace of this process has been accelerated by the recession, welfare cuts, the introduction of Universal Credit and the Government’s reductions in grant aid to Local Authorities who, in turn, have cut grants to charities.

• k) The Corona Virus from 2020 onwards has deprived many charities of earned income and is forcing some of them out of business.

• l) On paper this principle of “self help and find a job” may be a laudable objective, but there will remain a rump of poor, often socially excluded, sometimes mentally impaired, perhaps addicted drug users, or alcohol abusers - people whose problem actually is an inability to help themselves no matter how hard they try, or who cannot try, because it is that inability that is their weakness.

• m) This Charity , and many others, will continue to do their best to help, but poverty, unemployment and homelessness are very much on the increase and way beyond the resources of charities on their own.

• n) As well as offering help to individuals in need the Charity is also empowered to help organisations that provide help to them.

Page 14 provides details of the grants made to organisations for The Period.

Page 16 sets out the "Facility Gifts in Kind" to a number of charities for The Period.

28

23. LEGISLATION, POLICIES, PROCEDURES AND PRACTICES COMPLIANCE

The Charity confirms it has complied/is complying with the following:

GOVERNANCE

The Registered Constitution and Rules as amended The “Good Governance” Code for the Voluntary and Community Sector Checklist Risk Register reviewed monthly Charity Commission’s “Public Benefit” Requirements Review of Trustees’ Skills and Knowledge audit and their pen picture profiles The Chairman’s Role and Job Description Trustees’ induction and training Trustees’ Code of Conduct Trustees’ Conflict of interest policy Trustees’ Declaration of Interests Trustees’ Expenses’ policy Trustees’ Register of Interests Equalities Legislation Equal Opportunities Policy Data Protection Act (registered) Environmental Policy Complaints Policy and Procedure

SOCIAL HOUSING - RETIREMENT & AFFORDABLE HOUSING FOR THE HOMELESS

FRS 102 applied to Annual Accounts

Homes England “STANDARDS” for: Home, Rent, Tenancy (Licence), Community Relations, Neighbourhood and Community, Value for Money (including Metrics) Retirement Almshouses Allocation Policy - 12 months residency qualification Housing Ombudsman Registration - extending licensees’ rights of complaint Worcester Citizens Advice Landlord and Agent “Smartlets” Agreement. Rent Arrears Protocol

FINANCES

Accounts Audited externally annually Annual Business Plan Annual Budget - Revenue & Capital separately Register of Assets and Liabilities - Maintain a current record of any new buildings under construction, together with any associated contractual liabilities to the contractors concerned. Financial Controls Policy including Value for Money & Metrics Financial Forecast Review Financial Viability Policy Insurance - Take out appropriate policies annually

Reserves - Set aside suitable major reserves for extraordinary repairs and capital projects - 10% revenue contingency

REVIEWS

A review of all policies, procedures, practices and compliance is completed annually

29

24. PRINCIPAL ADVISERS TO THE CHARITY

SOLICITORS

Hallmark Whatley Hulme 3-5 Sansome Place Worcester WR1 1UQ Tel. [phone] BANKERS Unity Trust Bank Plc Nine Brindley Place Birmingham, B1 2HB Tel. [phone] ARCHITECTS Lett + Sweetland Architects PO Box 1008 Worcester WR1 9EJ Tel. [phone] COMMERCIAL VALUERS GJS Dillon, Chartered Surveyors 7 Roman Way Business Centre Droitwich, WR9 9AJ Tel. [phone] ARC Surveyors Ltd Adrian Robinson, MRICS The Cedar Office 5 Thackholme Worcester WR4 0RZ Tel. [phone] AUDITORS Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern WR14 2JS Tel. [phone]

TRUSTEES' APPROVAL

The foregoing Report of the Trustees, pages 1 - 30, was approved and signed on behalf of the Board of Trustees together with the audited Accounts pages 31 - 61 and presented to their meeting on 28th June 2023.

Paul Griffith

PAUL GRIFFITH, MBE (Chairman)

Geraint Thomas

GERAINT THOMAS (Vice-Chairman)

30

25. Audited Accounts

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Opinion

We have audited the financial statements of Worcester Municipal Charities (CIO) (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, statement of cash flows and the 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 FRS 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:

• give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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 charity 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 charity’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 information given in the financial statements is inconsistent in any material respect with the Trustees report; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

31

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees 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 charity’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 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 144 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.

Extent to which the audit was considered capable of detecting irregularities including fraud

• an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained

• an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made

• it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity

Audit response to risks identfiied

The information obtained through the assessment to risk procedures is reviewed and the following work undertaken:

• processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material misstatements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.

• an understanding of the legal and regulatory framework as applicable to the charity is obtained together with knowledge of the procedures put in place by the charity in order to comply with the same

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

32

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

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.

Sarah Morley ACA (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP

Sarah Morley

28 June 2023

Chartered Accountants

Statutory Auditor

Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

33

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial year Unrestricted Unrestricted funds funds general designated 2022 2022 Notes £ £ Income and endowments from: Donations and legacies 3 50 - Charitable activities 4 1,080,137 - Investments 5 6,912 - Other income 6 9,197 1,000 Total income and endowments 1,096,296 1,000 Expenditure on: Charitable activities Grant making 7 404,167 - Sheltered housing 7 394,790 - Social housing 7 217,628 - Commercial property 7 288,302 1,035 Total charitable expenditure 1,304,887 1,035 Net gains/(losses) on investments 13 (6,136) - Net (outgoing)/incoming resources before transfers (214,727) (35) Gross transfers between funds 14 97,171 55,552 Net (outgoing)/incoming resources (117,556) 55,517 Other recognised gains and losses Revaluation of tangible fixed assets - - Net movement in funds (117,556) 55,517 Fund balances at 1 January 2022 1,947,337 24,624 Fund balances at 31 December 2022 1,829,781 80,141	Restricted Endowment funds funds 2022 2022 £ £ 331,851 - - - - - - - 331,851 - 172,120 - - - - - - - 172,120 - - - 159,731 - (152,723) - 7,008 - - (65,265) 7,008 (65,265) 2,764 12,918,912 9,772 12,853,647	Total 2022 £ 331,901 1,080,137 6,912 10,197 1,429,147 576,287 394,790 217,628 289,337 1,478,042 (6,136) (55,031) - (55,031) (65,265) (120,296) 14,893,637 14,773,341	Total 2021 £ 405,675 954,322 4,325 124,121 1,488,443 606,446 384,594 222,850 119,383 1,333,273 3,291 158,461 - 158,461 (707,381) (548,920) 15,442,557 14,893,637

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

34

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year Unrestricted Unrestricted funds funds general designated 2021 2021 Notes £ £ Income and endowments from: Donations and legacies 3 98 - Charitable activities 4 954,322 - Investments 5 4,325 - Other income 6 19,049 - Total income and endowments 977,794 - Expenditure on: Charitable activities Grant making 7 453,633 - Sheltered housing 7 384,594 - Social housing 7 222,850 - Commercial property 7 111,061 8,322 Total charitable expenditure 1,172,138 8,322 Net gains/(losses) on investments 13 3,291 - Net (outgoing)/incoming resources before transfers (191,053) (8,322) Gross transfers between funds 14 82,296 (98,676) Net (outgoing)/incoming resources (108,757) (106,998) Other recognised gains and losses Revaluation of tangible fixed assets - - Net movement in funds (108,757) (106,998) Fund balances at 1 January 2021 2,056,094 131,622 Fund balances at 31 December 2021 1,947,337 24,624	Restricted Endowment funds funds 2021 2021 £ £ 405,577 - - - - - - 105,072 405,577 105,072 152,813 - - - - - - - 152,813 - - - 252,764 105,072 (250,000) 266,380 2,764 371,452 - (707,381) 2,764 (335,929) - 13,254,841 2,764 12,918,912	Total 2021 £ 405,675 954,322 4,325 124,121 1,488,443 606,446 384,594 222,850 119,383 1,333,273 3,291 158,461 - 158,461 (707,381) (548,920) 15,442,557 14,893,637

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

35

WORCESTER MUNICIPAL CHARITIES (CIO)

BALANCE SHEET

AS AT 31 DECEMBER 2022

		2022	2022		2021
	Notes	£	£	£	£
Fixed assets
Tangible assets	16		6,907,714		6,907,884
Investment properties	17		7,555,629		7,288,426
Investments	19		33,968		40,104
			14,497,311		14,236,414
Current assets
Debtors	20	228,258		188,466
Cash at bank and in hand		862,896		1,233,456
		1,091,154		1,421,922
Creditors: amounts falling due within
one year	21	(432,822)		(311,981)
Net current assets			658,332		1,109,941
Total assets less current liabilities			15,155,643		15,346,355
Creditors: amounts falling due after
more than one year	22		(382,302)		(452,718)
Net assets			14,773,341		14,893,637
Capital funds
Endowment funds	25		12,853,647		12,918,912
Income funds
Restricted funds	26		9,772		2,764
Unrestricted funds-general
Designated funds	27	80,141		24,624
General unrestricted funds		1,829,781		1,947,337
			1,909,922		1,971,961
			14,773,341		14,893,637
The financial statements were approved by the Trustees		on 28 June 2023
Paul Grifth		Geraint Thomas
.................................		..................................
Paul Griffith MBE, Trustee		Geraint Thomas,		Trustee

36

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes Cash flows from operating activities Cash generated from/(absorbed by) operations 30 Investing activities Purchase of tangible fixed assets Purchase of investment property Proceeds on disposal of investment property Proceeds on disposal of other investments Interest received Net cash (used in)/generated from investing activities Financing activities Repayment of borrowings Proceeds of new bank loans Net cash (used in)/generated from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2022 £ £ 26,320 (66,130) (267,203) - - 6,915 (326,418) (70,462) - (70,462) (370,560) 1,233,456 862,896	2021 £ £ (24,107) (711,262) (21,426) 470,072 372,072 4,325 113,781 (19,559) 500,000 480,441 570,115 663,341 1,233,456

37

WORCESTER MUNICIPAL CHARITIES (CIO)

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

1 Accounting policies

Charity information

Worcester Municipal Charities is a Charitable Incorporated Organisation (CIO) and a non-profit private registered provider of social housing in the United Kingdom. The address of the registered office is Kateryn Heywood House, Berkeley Court, The Foregate, Worcester, WR1 3QG.

The nature of the charity's operations and principal activities are: helping Worcester City people in financial need by providing grants of essential items or services not provided for by the state. Assisting organisations who help Worcester City people in need. Provision of affordable social housing in Worcester City. The promotion of education to those in need from The City of Worcester, The parishes of Powick, Bransford, Rushwick and The Ancient Parish of Leigh.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). Having regard to the disclosure of additional information in connection with the charitable activities undertaken in respect of housing.The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. 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 freehold properties and 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 charity 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.

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 charity.

1.4 Incoming resources

Income is recognised when the charity 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 charity 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.

38

WORCESTER MUNICIPAL CHARITIES (CIO)

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

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the charity 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.

Rental income 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.

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligationn committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is included on an accruals basis, inclusive of any VAT which cannot be recovered, and has been classified under headings that aggregate all costs related to that category.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to the performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

1.6 Tangible fixed assets

Social housing properties are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements.

Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

Land and other assets donated by local authorities and other government sources related to a specific development is added to cost at the fair value of the land at the time of the donation.

Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually.

Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated 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:

Fixtures and fittings 10% reducing balance Office equipment 20% reducing balance

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.

39

WORCESTER MUNICIPAL CHARITIES (CIO)

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

1 Accounting policies

(Continued)

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

It is the charity’s policy to revalue the properties every five years, with revaluation gains and losses recognised in the statement of financial activities in accordance with the SORP. The basis of valuation is for a continuing existing use or the open market value for investment purposes or disposal of sale whichever is appropriate.

1.8 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.

1.9 Impairment of fixed assets

At each reporting end date, the charity 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).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.11 Financial instruments

The charity 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 charity's balance sheet when the charity 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.

40

WORCESTER MUNICIPAL CHARITIES (CIO)

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

• 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 charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

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

1.13 Retirement benefits

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

2 Critical accounting estimates and judgements

In the application of the charity’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 Donations and grants received

Unrestricted Restricted funds funds general 2022 2022 £ £ Donations and gifts 50 - Grants received - 331,851 50 331,851	Total Unrestricted Restricted funds funds general 2022 2021 2021 £ £ £ 50 98 - 331,851 - 405,577 331,901 98 405,577	Total 2021 £ 98 405,577
		405,675

41

	Total	2021		£	939,308	15,014	954,322
	Investment	properties	2021	£	490,131	10,312	500,443
	Sheltered Social housing	housing	2021 2021	£ £	213,443 235,734	4,702 -	218,145 235,734
	Investment Total	properties 2022	2022	£ £	498,732 1,062,297	12,786 17,840	511,518 1,080,137
4 Rental income	Sheltered Social housing	housing	2022 2022	£ £	Charitable rental income 227,649 335,916	Service charges 5,054 -	232,703 335,916

42

WORCESTER MUNICIPAL CHARITIES (CIO)

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

5 Investments

	Unrestricted	Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Income from listed investments	2,121	2,654
Interest receivable	4,791	1,671
	6,912	4,325

43

						Total			2021	£	105,072		19,049	124,121
						Unrestricted Endowment	funds funds	general	2021 2021	£ £	- 105,072		19,049 -	19,049 105,072
						Total			2022	£	-		10,197	10,197
						Unrestricted Unrestricted	funds funds	general designated	2022 2022	£ £	- -		9,197 1,000	9,197 1,000
WORCESTER MUNICIPAL CHARITIES (CIO)		NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)		FOR THE YEAR ENDED 31 DECEMBER 2022	6 Other income						Net gain on disposal of tangible fixed assets		Other income

44

WORCESTER MUNICIPAL CHARITIES (CIO)

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

7 Charitable activities

Grant making Almshouses - retirement Almshouses - homeless Commercial properties 2022 2022 2022 2022 £ £ £ £ Staff costs 6,740 41,838 - - Bad debt provision - - - (2,474) Welfare costs - 12,196 - - Routine maintenance - 82,199 79,199 24,369 Heat and power - 28,091 - - Rates - 12,767 - - Management costs - - 50,361 - Unreimbursed costs - - - 7,691 Cleaning and hygiene - 2,009 - - Refurbishment costs - 181,567 38,812 184,745 6,740 360,667 168,372 214,331 Grant funding of activities (see note 8) 520,887 - - - Share of support costs (see note 9) 47,038 32,985 47,613 72,505 Share of governance costs (see note 9) 1,622 1,138 1,643 2,501 576,287 394,790 217,628 289,337 Analysis by fund Unrestricted funds - general 404,167 394,790 217,628 288,302 Unrestricted funds - designated - - - 1,035 Restricted funds 172,120 - - - 576,287 394,790 217,628 289,337	Total 2022 £ 48,578 (2,474) 12,196 185,767 28,091 12,767 50,361 7,691 2,009 405,124 750,110 520,887 200,141 6,904 1,478,042 1,304,887 1,035 172,120 1,478,042	Total 2021 £ 52,590 (7,893) 11,345 111,134 36,078 13,711 35,146 5,030 2,253 297,691 557,085 517,254 252,649 6,285 1,333,273 1,172,138 8,322 152,813 1,333,273

45

WORCESTER MUNICIPAL CHARITIES (CIO)

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

7 Charitable activities (Continued) For the year ended 31 December 2021

Grant making Almshouses - retirement Almshouses - homeless Commercial properties £ £ £ £ Staff costs 11,967 40,623 - - Bad debt provision - - - (7,893) Welfare costs - 11,345 - - Routine maintenance - 40,463 43,712 26,959 Heat and power - 36,078 - - Rates - 13,711 - - Management costs - - 35,146 - Unreimbursed costs - - - 5,030 Cleaning and hygiene - 2,253 - - Refurbishment costs - 198,584 99,107 - 11,967 343,057 177,965 24,096 Grant funding of activities (see note 8) 517,254 - - - Share of support costs (see note 9) 75,351 40,528 43,796 92,974 Share of governance costs (see note 9) 1,874 1,009 1,089 2,313 606,446 384,594 222,850 119,383 Analysis by fund Unrestricted funds - general 453,633 384,594 222,850 111,061 Unrestricted funds - designated - - - 8,322 Restricted funds 152,813 - - - 606,446 384,594 222,850 119,383

Total 2021 £ 52,590 (7,893) 11,345 111,134 36,078 13,711 35,146 5,030 2,253 297,691 557,085 517,254 252,649 6,285 1,333,273 1,172,138 8,322 152,813 1,333,273

46

WORCESTER MUNICIPAL CHARITIES (CIO)

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

8 Grants awarded

Grants to institutions: Maggs Day Centre Citizens Advice Worcester Armchair Shopmobility Worcester Community Trust WHAT Dancefest All Sorts of Performing Arts John Palmer Grants to individuals (87 grants) Relief in need and carpets Educational White goods DWAS	Grant making 2022 £ 30,830 180,316 16,640 7,000 40,019 37,615 17,951 14,219 954 345,544 26,271 1,671 509 146,892 520,887	Grant making 2021 £ 29,645 173,381 16,000 7,000 38,480 36,168 17,260 13,672 950 332,556 30,311 688 886 152,813 517,254

47

WORCESTER MUNICIPAL CHARITIES (CIO)

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

9 Support costs

Staff costs Depreciation Office running costs Accountancy Bank charges and subscriptions IT and software Sundries Irrecoverable VAT Telephone Insurance Business manager fees Surveyor fees Legal & professional Bank loan interest Audit fees Meeting expenses Analysed between Charitable activities	Support costs Governance costs £ £ 61,646 - 1,032 - 6,144 - 4,509 - 1,226 - 4,347 - 574 - 31,345 - 925 - 45,364 - 5,900 - 15,262 - 2,472 - 19,395 - - 6,220 - 684 200,141 6,904 200,141 6,904	2022 £ 61,646 1,032 6,144 4,509 1,226 4,347 574 31,345 925 45,364 5,900 15,262 2,472 19,395 6,220 684 207,045 207,045	2021 Basis of allocation £ 60,359 Charitable activities 1,064 Charitable activities 7,683 Charitable activities 3,330 Charitable activities 1,302 Charitable activities 3,378 Charitable activities 4,414 Charitable activities 69,184 Charitable activities 3,432 Charitable activities 38,731 Charitable activities 5,568 Charitable activities 29,546 Charitable activities 5,195 Charitable activities 19,463 Charitable activities 5,977 Governance 308 Governance 258,934 258,934

10 Auditor's remuneration

Governance costs includes payment to the auditors of £4,950 (2021 £4,950) for audit fees together with £1,270 (2021 - £1,027) for other services provided.

11 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year and none of the trustees were re-imbursed expenses (2021 none of the trustees were re-imbursed).

48

WORCESTER MUNICIPAL CHARITIES (CIO)

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

12 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees The average monthly number of employees during the year was:
Support Warden Employment costs Wages and salaries Social security costs Other pension costs	2022 Number 3 2 5 2022 £ 100,975 3,593 5,656 110,224	2021 Number 3 2
		5
		2021 £ 103,038 4,854 5,057
		112,949

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

49

WORCESTER MUNICIPAL CHARITIES (CIO)

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

13 Net gains/(losses) on investments

	Unrestricted	Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Revaluation of investments	(6,136)	3,291

14 Transfers

During the year transfers were effected from the unrestricted and designated funds to reflect the contributions made towards the WHAT and provision of future repair sinking funds.

Transfers made between the unrestricted and restricted funds were to reflect the refurbishment of 1+2 Inglethorpe.

50

WORCESTER MUNICIPAL CHARITIES (CIO)

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

15 Accommodation owned, managed and in development

	**Number of units **	Number of units
	at 1 Jan 2022	at 31 Dec 2022
Social housing
General needs housing:
Let at social rent	-	-
Affordable rent	64	68
Supported housing	32	32
Total owned and managed	96	100
Accommodation in development	-	-

Net surplus from social and sheltered housing

Rental income Service charges Operating costs Staff costs Routine maintenance Welfare Heat and light Rates Cleaning and hygiene Management cost Refurbishment costs Administrative expenditure Share of support costs Share of governance costs Net surplus / (deficit)	2022 Social Sheltered 335,916 227,649 5,054 335,916 232,703 - (41,838) (79,199) (82,199) - (12,196) - (28,091) - (12,767) - (2,009) (50,361) - (38,812) (181,567) (47,615) (32,985) (1,643) (1,138) 118,286 (162,087)	2021 Social Sheltered 235,734 213,443 - 4,702 235,734 218,145 - (40,623) (43,712) (40,463) - (11,345) - (36,078) - (13,711) - (2,253) (35,146) - (99,107) (198,584) (43,796) (40,528) (1,089) (1,009) 12,884 (166,449)

51

WORCESTER MUNICIPAL CHARITIES (CIO)

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

16 Tangible fixed assets

Tangible fixed assets
Social housing £ Cost At 1 January 2022 4,370,000 Additions 65,265 At 31 December 2022 4,435,265 Depreciation and impairment At 1 January 2022 - Depreciation charged in the year - Impairment losses 65,265 At 31 December 2022 65,265 Carrying amount At 31 December 2022 4,370,000 At 31 December 2021 4,370,000	Sheltered housing Fixtures and fittings £ £ 2,533,082 4,531 - - 2,533,082 4,531 - 2,118 - 242 - - - 2,360 2,533,082 2,171 2,533,083 2,414	Office equipment £ 7,892 865 8,757 5,505 791 - 6,296 2,461 2,387	Total £ 6,915,505 66,130
			6,981,635
			7,623 1,033 65,265
			73,921
			6,907,714
			6,907,884

52

					(Continued)		2021	£	4,370,000	2,530,000	6,900,000
							2022	£	4,370,000	2,533,082	6,903,082
WORCESTER MUNICIPAL CHARITIES (CIO)		NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)		FOR THE YEAR ENDED 31 DECEMBER 2022	16 Tangible fixed assets	The carrying value of land included in land and buildings comprises:			Freehold	Long leasehold

53

WORCESTER MUNICIPAL CHARITIES (CIO)

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

17 Investment property Commercial properties Social investment properties Social investment properties Freehold Freehold Leasehold Fair value At 1 January 2022 6,077,000 850,000 361,426 Additions - - 267,203 At 31 December 2022 6,077,000 850,000 628,629	2022 £ 7,288,426 267,203
	7,555,629

Investment property comprises commercial and social investment properties. The fair value of the investment property has been arrived at on the basis of a quinquennial property valuation exercise carried out in December 2020. The commercial properties were valued by Guise Jones Sawyer and the agricultural properties by ARC Surveyors.

The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.

18	Financial instruments
		2022	2021
		£	£
	Carrying amount of financial assets
	Instruments measured at fair value through profit or loss	33,968	40,104

54

WORCESTER MUNICIPAL CHARITIES (CIO)

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

19 Fixed asset investments

Cost or valuation At 1 January 2022 Valuation changes At 31 December 2022 Carrying amount At 31 December 2022 At 31 December 2021 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income Amounts falling due after more than one year: Other debtors Total debtors	Listed investments £ 40,104 (6,136) 33,968 33,968 40,104 2022 2021 £ £ 185,111 139,742 235 5,360 36,808 42,150 222,154 187,252 2022 2021 £ £ 6,104 1,214 228,258 188,466

20 Debtors

55

WORCESTER MUNICIPAL CHARITIES (CIO)

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

21 Creditors: amounts falling due within one year Notes Bank loans 24 Other taxation and social security Deferred income 23 Grants payable Other creditors Accruals and deferred income 22 Creditors: amounts falling due after more than one year Notes Bank loans 24 23 Deferred income Arising from rents paid in advance All the above relate to the following period and are released in full. 24 Loans and overdrafts Bank loans Payable within one year Payable after one year	2022 £ 27,678 4,615 103,232 125,214 153,292 18,791 432,822 2022 £ 382,302 2022 £ 103,232 2022 £ 409,980 27,678 382,302	2021 £ 27,724 10,017 103,232 47,556 108,250 15,202
		311,981
		2021 £ 452,718
		2021 £ 103,232
		2021 £ 480,442
		27,724 452,718

The long-term loan is secured by a fixed charge over the freehold property situated at 1 The Cross, Worcester.

56

25 Endowment funds	Endowment funds represent assets which must be held permanently by the charity, principally property.	Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses	arising on the assets form part of the fund will be used to acquire further freehold property.	Movement in funds as restated Movement in funds	Balance at Incoming Resources Transfers Revaluations Balance at Incoming Resources Transfers Revaluations Balance at	1 January 2021 resources expended gains and 1 January 2022 resources expended gains and 31 December	losses losses 2022	£ £ £ £ £ £ £ £ £ £ £	Permanent endowments	Endowed funds 13,254,841 105,072 - 266,380 (707,381) 12,918,912 - - - (65,265) 12,853,647	13,254,841 105,072 - 266,380 (707,381) 12,918,912 - - - (65,265) 12,853,647

57

26 Restricted funds	The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific	purposes:	Movement in funds Movement in funds	Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at	1 January resources expended 1 January resources expended 31 December 2022	2021 2022	£ £ £ £ £ £ £ £ £	DWAS - 155,577 (152,813) - 2,764 146,851 (146,892) (2,723) -	Homes England - 250,000 - (250,000) - 150,000 - (150,000) -	Platform and WCC carpet grant - - - - - 35,000 (25,228) - 9,772	- 405,577 (152,813) (250,000) 2,764 331,851 (172,120) (152,723) 9,772		DWAS scheme - A contract with City Council to manage the purchase and distribution of white goods in Worcester as part of the Discretionary Welfare	Assistance Scheme (DWAS).	Homes England - Homes England provided a grant in respect to the development of 1+2 Inglethorpe Court

58

WORCESTER MUNICIPAL CHARITIES (CIO)	NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)	FOR THE YEAR ENDED 31 DECEMBER 2022	27 Designated funds	The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:	Movement in funds Movement in funds	Balance at Resources Transfers Balance at Incoming Resources Transfers Balance at	1 January 2021 expended 1 January 2022 resources expended 31 December	2022	£ £ £ £ £ £ £ £	Shaw Street 109,676 - (109,676) - - - - -	Tudor House 21,946 (8,322) 11,000 24,624 1,000 (1,035) 4,000 28,589	Sinking fund for future repairs - - - - - - 51,552 51,552	131,622 (8,322) (98,676) 24,624 1,000 (1,035) 55,552 80,141		Trustees have decided to hold sinking funds as a general provision for future repair work	28 Analysis of net assets between funds	Unrestricted Designated Restricted Endowment Total Unrestricted Designated Restricted Endowment Total	2022 2022 2022 2022 2022 2021 2021 2021 2021 2021	£ £ £ £ £ £ £ £ £ £	Fund balances at 31	December 2022 are	represented by:	Tangible assets - - - 6,907,714 6,907,714 4,802 - - 6,903,082 6,907,884	Investment properties 1,478,629 - - 6,077,000 7,555,629 1,211,426 - - 6,077,000 7,288,426	Investments - - - 33,968 33,968 40,104 - - - 40,104	Current assets/(liabilities) 733,454 80,141 9,772 (165,035) 658,332 1,143,723 24,624 2,764 (61,170) 1,109,941	Long term liabilities (382,302) - - - (382,302) (452,718) - - - (452,718)	1,829,781 80,141 9,772 12,853,647 14,773,341 1,947,337 24,624 2,764 12,918,912 14,893,637

59

WORCESTER MUNICIPAL CHARITIES (CIO)

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

29 Related party transactions

The Charity provided rent-free offices with an estimated rental value of £46,240 (2021 - £46,240) to Citizens Advice Worcester and was also charged by them 15% of licence payments in respect of management fees for managing the Charity's social housing. The charity also provided grants of £180,406 (2021 - £173,381) to Citizens Advice Worcester towards its running costs. Paul Griffith, is a trustee of this charity and of Citizens Advice Worcester. Geraint Thomas is a trustee of this Charity and employee of Citizens Advice Worcester.

The Charity provided rent-free offices, a day centre and "free clothes" store with estimated rental values of £24,000 (2021 - £24,000) and also made a grant of £30,830 (2021 - £29,645) to Maggs Day Centre. Sue Osborne is a Trustee of this charity and of Maggs Day Centre. Mel Kirk is a trustee of this charity and an employee of Maggs Day Centre

The Charity provided a subsidised warehouse and offices to Armchair for which a reduced premium of £55,000 (2021 - £55,000) was paid to the WCMC predecessor charity for a 50 year lease in 1996. Margaret Jones, Mel Kirk and Richard Boorn are trustees of this charity and of Armchair.

The Charity provided a rent-free Heritage Museum (Tudor House) with an estimated rental value of £8,000 (2021 - £8,000) and also made a grant over two years of £37,614 (2021 - £36,168) to the Worcester Heritage and Amenity Trust. Margaret Panter is a Trustee of this charity and of the Worcester Heritage and Amenity Trust.

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

		2022	2021
		£	£
	Aggregate compensation	110,224	112,949
30	Cash generated from operations	2022	2021
		£	£
	Deficit for the year	(120,296)	(548,920)
	Adjustments for:
	Investment income recognised in statement of financial activities	(6,912)	(4,325)
	Gain on disposal of tangible fixed assets	-	(105,072)
	Fair value gains and losses on investments	6,136	(3,291)
	Depreciation and impairment of tangible fixed assets	65,265	708,444
	Movements in working capital:
	(Increase) in debtors	(39,793)	(49,267)
	Increase/(decrease) in creditors	121,920	(21,676)
	Cash generated from/(absorbed by) operations	26,320	(24,107)

60

WORCESTER MUNICIPAL CHARITIES (CIO)

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

31 Analysis of changes in net funds

At 1 January 2022 £ Cash at bank and in hand 1,233,456 Loans falling due within one year (27,724) Loans falling due after more than one year (452,718) 753,014	Cash flows £ (370,560) 22,632 47,830 (300,098)	Other movements At 31 December 2022 £ £ - 862,896 (22,586) (27,678) 22,586 (382,302) - 452,916

61

The Old Glove Factory - Grade II listed building - built 1691 Now occupied commercially by Expertan and Barber, Sorin Pop with the Charity providing the rest of the property to Citizens Advice Worcester rent free.

62

Nash's and Wyatt's Almshouses - The original almshouses of John Nash (New Street 1661) and Michael Wyatt (Friar Street 1775) were both condemned as part of the infamous "slum clearances" of the 1960s and rebuilt together on the New Street site in 1964

63

A R 2 0 2 2

Maggs Day Centre for the Homeless

St. Alban's Chapel Grade 2 Listed Building & Ancient Monument Let on a Peppercorn rent

Tudor House Museum

Grade 2* Listed Building Let to Worcester Heritage & Amenity Trust Ltd on a Peppercorn rent

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