KENDAL ALMSHOUSE CHARTrY Regknter¢d Charity Nllmber 1172208 Emtland 5097 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 St*bles ThompsoD & Brix Chart¢T¢d Aeeouitsnts Ststmtory Audbto KENDAL ALMSHOUSE cHAR￿y FINANCIAL STATEMENTS FOR THE YEAR ENDED 3) DECEMBER 2023 Clwity Inforniation Tnytces, Report Statement of Tn￿te¢s, R￿p￿Ibili￿¢s Jndepend¢nt Auditors, Report 8-10 ststement of Compreknenjive Income ststement of ChaD8es iti R¢serves 12 Ststtment of Financial Posiiif 13 Notes to the FinAncial Stst¢m¢n 14-22 KENDAL ALMSHOUSE CHARITY CIIARrrY INFORMATION Established u CIO 22 March 2Q17 Principa] Offi Suite I, Cutnbria Tourism Business Centre Winderniere Road Stsveley LA8 9PL Rewstered Numbers Registu￿ Charity Number 1172208 Homes and Communities Agency Registration Number A1059 Trusw$ Mr P G [*jcks￿ ( Chair) Mrs C D(dwell (Vice Chair) Mi55 S J Barrott (•ppointed 17 July 2023) Mrs H Filch M5 L Gray Mrs J Hale Miss D l￿nd Mr J Stirling Managing Ageni H & H land & Eststes Suits l. Cumbria Tourism Busin¢sJ Centre Staveley IA8 9PL Tel- 01539 721375 Banke Bar¢lays Bank Pk 9 Highgttr Kend¥l Cumbria LA9 4DF tndcpendent Audiiors Stsbles Thornp￿n & Bris¢oe Chartered Accountants StsMiory AuditorJ wther House Kendal LA9 4DX P*te I KENDAL ALMSHOUSE CHARr TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 21ll3 Th¢ Truste¢$ present their report and the audited fmanciil ststements fw th¢ year ended 31 December2023. Governance, Alms, Str¥ttsre and Maty*iernent The K¢Dd41 Ahnshouse Chariry was Origi￿lty five charit4bk organisatii)ns re8iSteTcd with the Charity Commission. In 1987. th¢ Charities were amalgamated fv create the Kendal AlMSh￿J3e Charity wider i MemOT￿dUrn of Asgoci•lion which e5tsbli5hed the objects and powers of the charitsble or8anisation, dated 2 D￿ernber 1987. In 2014 the assets alld liabilities of Kendal War Memorial Tru51 w¢re acquwed by KendAI Almsh￿$¢ Charity. In March 2017. the Charity Commission approved th¢ Conversion to * Cb•ritable IncoTPQrnted Org4ni$ation (CIO). AII the as5e¢s •od opeTation3 w¢re transf¢rr¢d into the CIO from June 2017. The Clwity NumbeT of the CIO is 1172208. There are ¢ighi Trustee5 11 th¢ date of this repor( with one new tnwtee re¢niited during the ]ast year. Mr P G Duckibury remain3 Chair. Mrs C Dodwell Temains •$ Vice Chttir. Mrs J H&le is ¢WY¢Dtly Ch•iT of ihe Finan¢¢ Committee, Mr$ 11 Fitch is Chair of the Lettings Cottunitt¢e Miss D Lund is Chair of th¢ Building Committee. Ten Th￿¢3 would be the ideal swc¢ur¢. are ell￿1￿8¢d to,knelwo￿. to find $uitsble new Truste¢$ and the Chority adv¢rti*$ position5 Available. Th¢ skills of the Tr￿￿et9 aT¢ regularly reYiewe4 and they are 411 encouraged to th a lead in an aspe¢t of the Charity business. Ea¢h Tru￿et IJ appoint¢d to at least one of the thr¢¢ CLYnmitie¢s' FinanK Buildings or Lettiny. It 1$ the policy of the Charity ts) appoint TnLSt¢¢8 with expwi¢nce in the kt¢in8 of residenliil property. ￿re of the ¢lderty and those in need building Cons￿on. fmantt. iDvestrnent l¢gal matters. Prior to appoiniment of new Trn$iee4 th¢ cwNlidaks are Fyovkled with an induction pAck wbich includes the GoverniD8 Instrument and minutes of r¢¢¢nt quarterly m¢etin8s of the ¢ommittees and the full Thi$te¢s. The Chair and cle￿ meel candidates to dTs¢¥s$ the background history and policy of the Ch￿￿ty. together with the fijture plans and objective5 of the organisati(yn. ￿fOre their #ppointsnenL Ea¢h ￿￿tential Trustee attends a quarterty Tr￿te¢ medin& as on observer. before being •PPQiDted. ChorRty Commission pubiic*iiJns gre also made awailabie. together with publications from the National A5$0¢i8tion of Almshouses of which Kendal Almshowe Chgrtry is a member. The stsndard of Alm5houyc Managemeni publication made available for ¢andidat¢3. New Thistees aTe issued with 4 Tr￿￿ee HaDdiYNJk wbich details how the Ch*ity is run and what is exF￿¢¢d of them. The implications of being a R¢gts*red ￿la1 Housin8 Provider ate also explatned to new Tn￿e¢s. P4e2 KEND.4L ALMSHOUSE CHARITY TRUSTELS, REPORT FOR THE YEAR XNDED 31 DECEMRER 2023 truc Th¢ Finance Committcc meets at It￿ every quarter, bcfor¢ ￿ch quarterly Trnslee mretin8. The txttin8 Committee 4nd Building Cornmittee Me￿ ￿￿￿tarly. Rectnily app)inicd Trustecs are appointed to a specific Committee whi¢h is rel¢vaM to iheir exp¢ri¢n¢¢. All eommitte¢s ￿MprISe a minimum of three I"rus*es and operate und¢r t¢rnis of reference. The Letting Committee rnccts to decide to app)ini applicants 5eekin8 a hom¢, based on the aims and objectives of the Charity and th¢ cir¢umstsnccs ofthe individual applicants. It a150 lia￿Se$ with the Building Committee 05 regards UP8rading of vacani units. Th¢ fun¢tion of the Buildin8 Commitl¢e is ￿ adv¢se the Trustee5 on major Improvemen￿ refurbishment schemes and th¢ ¢on¢lu$ions of the quinquennial stsrvey ￿ports. Quin4uennial repons are ob(aincd on thc general conditlDn of the housing stock with rccommcndation5 on improvemenls and ur8ent repairs needed. 'IThc5e r¢ports Irc undcrtikcn by a professional Building SurvcyoT. Quinqu¢nnial inspectbon5 w¢r¢ I￿t undenaket) in 2020 arml we will be going out to tender for quinquenttill 5urvey5 Qn all thc pmperry 5￿k later thi5 year. Th¢re are t)0 Si8nifi¢ant buildin8 repairs requir¢d but there is an on8oin8 pro8ramme of repl#¢ing boilers. internal up8rad¢s and exiernal dccora(ion. Thc Building Committ¢¢ has been con¢entr&ting on the redevekjpment of the"Roml¢i8h" site which be¢n vi¢ani since 2019. Plannin8 pennission was obiained durin8 2021 to demolish ihe bungalow and r¢build with ¢wo scmi. d¢ta¢hed orte ￿dr￿rn dwellin&8 and a new plannins gpplication lo vary ihe design was submitted in 2022 (approvcd Febru8ry 20231. I,ollowing Thvo icndcr processes. a prtferred wn¢ra¢lor apix)inied with a contract price of £541.505.35. Work on 5il¢ ¢ommenc¢d in July 2023 with completion schedulcd for April 2024. Thc Ch￿lty has secured total grani fvndin8 of £248.(KIO: £208.000 from Ilomes England and £40,000 from W¢simorlBnd & Furness Council IWFC). 'lknc Charily Iw r¢¢cived the WFC grant in full Ind 75% ofthc Homes, England, wilh th¢ r¢maining 25% due on ¢omplthMJll. The Charity obtain¢d a loan from Charity Bank in the sum of £480.000. tsf whi¢h was use4J to settle the outstandin8 Fjarclays loan taken oui for thc refurbi%hm¢nt of ihe Sleddal Vicloria Almsht)u$es after the devastation causcd by fl(xMlin8 in 2015, resuliing in nct borrowin8s ofc.£270.0(H) towar¢ts th¢ Ruml¢igh project. The Inan was se¢ured again51 the propcrtics ht Nobles Rest. 'I'he full gmount of the IoAn has now been drawn down. with the final amouni done on 22nd M8r¢h 2024. Thc rcmaining ¢051 of ihe Roml¢iBh projcct is being from ihe Charily's T¢s¢rv¢s. further dctsils of which are providcd bclow. At the lime the loan was (ak¢n OUL thcrc w&$ somc unceriainly about £IOO.OCKI of the 8rant fundin8, which 5ubs¢qucntly awarded. Con5cquently wherra5 it wa5 anticipated that the Charity would usc £200.000 of its reserve5 for th¢ proj¢cL it is rtow cxpected to be ¢loser to £lOO,(K￿l. The ¢harity follows th¢ nbles amd rrgulaliL￿5 of Homes England. em The I'inan¢c Comrnittec monitors the suitsbility and adeqU￿Y of the investments. taking into account ihe OPer￿lOn8[ and ￿htr requirements of th¢ Charity. It normally rn￿ts imm¢dia*ly prior ￿ the full trustees me¢iin& providing a¢¢urate and iimely rewjrting. The A￿DU￿at￿ are Regi￿er¢I AudilLYS. and thc CEerk is a member of the knyal Instittrte of Chartered Surveyors. PAEe 3 KE￿TrAL ALmsHO￿sE CHARITY TRU￿EEs, RKPORT FOR THE YEAR EYL DED 31 DECEMBER 2•23 Risk MaThaLemcnt ontinued Together with the existirtg tnana8ement slruclure and administrative 8rrangerncTrt5 in place, regular monitoring of the agreed risk management policy and applicable indemnity in$tsr8nc¢ arTangun¢nts. the Trusttts att ￿l$fIed that 4ppropriate risk management practirtt are in plac¢ to meet the needs of the Charity and protrd its activities. To addres5 the potcntial risk u50ciaied with ihc irnpendin8 retirement of ihc Clerk, the Trustees have agreed pnd Signed a Se￿iCe Ikvel Agrtement with the Clerk's professional offirc5 H & H Land and E5tate5. Chortered Surveyorg. The Clerk's h8$ instiwed the gr*lual transfer and delegauon of the Clerk'5 duties to collea8UeS, including the Accounts and Administrntion Deparrni. The Service Jxv¢l AgrE&nent is ￿￿]eWed at each quarterly meeting. The Trusl re8ularly reviews its w)licie5 by looking at two io thrt¢ at each quarterly mectin& During 2023. up to the prc¥eni dal¢. almost all the policies and th¢ risk ¥ssessmeni have been reviewed and updatcd. 'lknere li some risk 8SSC¢d ID ihe AuditoT's resp)nsibilitie5 for the audit of th¢ fmanci&l statements section of Cw report. We are itidependenl of the ￿SocIatIon in a¢eordance with the ethical requirejnents that are relevani to OUT audit of the fffjancial ststements in the UK iticludin8 the FRC'S Ethical Standard, we have fijlfilled our other ¢ihi¢al r¢S￿nsibIlItIe9 in accoTdanu with these requirem¢Dts. We b¢li¢ve that the audii ¢vidence we have obtained is suffi¢ien¢ 8od appropri•te io ptovidc a b•$iJ for our opinion. ConcluJlonJ relatlDe ¢0 golni ¢oDee In auditing the financial stotem¢nts. we have ¢on¢h]ded that the both'$ Use of the goin8 concern b￿1$ of accountin8 in the preparation of the fJnBncial $tst¢ments is apwipriate. Based on the work w¢ have perfonne4 we have nol id¢niified any mat¢Tial uncertainties rel￿1Th8 io events or ¢onditions thaL individually OT wll¢dively. may ¢aM $ignificani dou￿ on the association's •bility ¢0 coTJlinu¢ 8$ a 80ing ¢on¢ern for a period of 01 least twelve months from wh¢n th¢ financial sts*ments are authori8¢d for issue. OUT r¢8ponsibilities and the resPO￿lb]litIeS of the trf>Ard with ffspect to going fontern are sks¢nb¢d in the r¢l¢vAnl 8ectiony of thi$ reiwL Other inform#tloD The other infonnation compnses th¢ infornwtion in¢luded ID the Trujtees, Rep(Yt. thon the financial ￿te[llents and our auditor's report thetron. The iwrd are responsibl¢ for the other inforniatiOD CODtained within the Trystees, Report. Our opinion on th¢ fmancial statements does cover th¢ other infonnation an4 excep¢ w the extent othmwise explicitly thied in our reporf, w¢ nsibk for ass¢uing the &wciation's ability to ¢ontinue as a 8oin8 concern, disclosin& a5 applicable. matters related ¢0 goin8 concern and Using the 80in8 concern basls of I￿OUnting unless the board either int¢nds to liquidate the associaiion or lo cease oFrations. or ha8 no realistic ahernative but to do $0. Audltor'i r¢sponslbllltks tor tb¢ 4¥dll of the nw•nei*l itAteYll¢n¢s Our obje¢lives are to obthin re￿onable aSSUTanc¢ 8boui whether th¢ fmancial ststernents L4 4 whole ure frte fTr)m m*erial misstatemenl whether thie to fraud or em)r. and ￿ issue an audttor's report that includes opinion. Reasonable assurance is a high level of assurance. but is not a guaranttt that an audit conducted in aC￿rdanCe with ISAS (UK) will always det¢¢t a material mi5slatement when it exists. Missia¢¢ments can arise from fraud OT error and are considered material if. individually or in th¢ aggregale, they could redsonlbly be expected io influen¢e the economic decisions of us¢rs iaken on the basis of these financial statements. Irregul4rities, includin8 fraud, aTe instanrxs of nonw¢ornpli•n¢¢ with laws And r¢8ulo1ions. We desi￿ procedures in line with our responsibilities. outlin¢d above. to deteci material misytsiernents in rtspeth of irr¢gularities. Includin8 fraud. Th¢ spccifK proc¢dure5 for this engagement and the extent to whi¢h these are capable of d¢tedin8 irresularities, including ft¥ud is deiail¢d ￿lOw- We identified areas of laws and regula¢ioDS thai could ttlsonably be expxt¢d io h•ve * rnaterial effect on th¢ fu￿1¢1 $t4tements from our experien¢e and from discussions with mana8ement. We miewed aDy related corresponden¢¢ Ind re¢ord$ of trusttt meetiny to ¥ssess compliance with laws ¥nd regulations and discu55ed the current position with man4g¢ment. We ensured the Judit were alert for any indi￿tionS of nonanei•l statements are ￿t ijut below. These wlicies have ixen con$istentty applied ￿ All years presented un1¢55 otherwise stai¢d. As a sm411 entity. the Ch8rity is not required to a C•th F]ow Ststement. c) Golns ¢oTree The trust¢es wnsId￿ thji there are DO materiAI uncert4iniieJ ab￿J1 the Charitys ability ¢0 ¢Ontinue 8 8oin8 concern. d) Tan8iblt nxed *sRts Tangibk fixed &ssets (ineludtn8 soci•1 h￿j$1￿8 prr4Xrtie$) are stst¢d •t cost or valuation less ac¢uJnulated depre¢io1im and accumulated impainn¢nt losses as appropriate. Cost includes costs direthly attribu¢able to making the &85et capable of opernting os intended xucb ￿ the ￿$1 of acquiring land and buildin8s, development cost& interest charges i)n loans during the deve]opm¢nt Peri￿1 and expenditure on improvtrnents. Expendi￿re on improvements will be capitslis¢d when il results in incTemen¢al ￿ture ben¢fii$ such as iti¢Te*sittg rental incom4 reth￿ing mJllbt¢nance costs or r¢sulting in * Significant extension of the useful economic lif¢ of the proiwty. The Charity's lan￿￿1¢ r￿ed assets ar¢ made up of housing proFrti¢s which are PTin¢ipally almshowes some of which weTe acquired in 1887 and have tKeviously been record￿ in the accounts •t cost. which wa$ well below the existing u5¢ vthlue &$ g￿la1 housing (EUV - SH) or open morkd volue. When the properties were transferred to the CIO the OP￿)rtunity was tsken to value the prop¢rties And the EUV-SH value has been brought into these accounts (see notr 4). Depr¢ci￿10n is provided on all taDgib]e r￿ed assets. at rates cakulat¢d lo wrile off the cosL less ¢stimated residual value. In th¢ ctse of the housin8 properties held at valuation, depT￿l￿10n is considered to be immaterial due to the hi￿ Tesithial value so is not I￿0Vided. Fre¢hold IAnd TS not depTeciated. Housing under c1x￿¢tim are depre¢14￿ until they &re in use and the useful economic live5 of 811 fixed assets att reviewed annualty. KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ￿ATEMEl￿rS R THE YEAR ENDED 31 DECEMBER 2023 Prlmclpal Ac¢ounllng Pojieles (eo•thbued) d) TaDiibk fixed an¢ts (conthiu￿} As the housing properties are now $hiwm at existin8 uje valuation for Social hous]￿ and the open market value of these prop¢rties is rou8hly twice the EUV-SH value, the residual value of the properties is considered w be higher than the ¢aTryiDg value 4nd #s such deprtcitition 15 not provided. The Valuatio￿ wiu be reviewed on a regular basis. e) Debtorj and trediton rtttfvablt I p4y*ble wlthth one ymr Debtors and cr¢ditors with no stat¢d interest rate and r¢¢¢iv•ble or payabl¢ within one y¢gr ar¢ rccorded at transa£tion prite. Any 105ses arising from inyirneth are r¢c08n1￿ in the sthtement of comprehensive in¢ome in other admini8lTative expenses. Rights of social landlords to have improvement works ¢arried oui to prosXrtie5 by a third party (Such as lo￿[ authority) are ttco8nised as prepa￿ents where p•yTrent bas oc¢urr¢d in adY8nce of th¢ works bein8 ¢•rri¢d out and receipts in advance from the same third party recognised &q liabilities. Asseis and liabilities or income and eXpethdtti￿C art not otTs¢L Prlor ye•r idlllslmeDt- correctlon Of ¢rror Hi$ioricalty the quarter of H & H Land and Ests*5 fees were in¢lud¢d as a Prepa￿nent on the mi$tsk¢n understanding the fees were ¢harged in advaty¢e. This w&s itieorre¢i and the prep#)m¢nt ha5 been r¢moved. As thiq goes back many y¢•Ts there is no err¢rt on the Income gnd Expendi￿re A¢wuni but only on the Ststemeni of Financial Position where De￿ord •nd the ￿ight forward balance on the A¢¢umula*d Income resefft have be￿ r¢du¢¢d by £9,000. Invesithents Investments are recogni￿d iniii#lly at cosi. Subsequent]y. they ar¢ measured ai fair vlllue through the statement of Comprthensivr income if the sh8r¢5 are publicty trthd or their fair volu¢ ¢kn otherwis¢ b¢ measwed reliabty. Other inve￿nents are me&￿￿ at CO￿ less tinp4irnient. h) 1Am￿ Ald borrowlDV Loans and borrowings are initially recognised •¢ the trans&¢iion price including trattsaction costs. Subsequentfy. they are measured 41 amortised ¢051 using th¢ effective interest rate meth4)d, less imparnnent. If an aJran8ement coLstimtes a fmancing transaction it is measured at pres¢nt valu¢. i) So¢i41 Ho4slni Gri*ts {SHG) #Ad Otber Grants SHG r￿e1Ved ￿ a want towards expenditurr ij matched a￿1n&t that expenditure by being inelud¢d in turnover tn the incorne and exp¢nditUTe account. The related expenditutt is included under op¢rd¢ing costs. SHG is recogllised in the same period as the relakd expenditure Provided the ¢onditions for ILS r¢¢eipt have been 5Stisfied and tbere is re￿nable assurance that the wani will be rtceivcd. Capital 8r8nts are showm in liabiltti¢s iintil the w*iect i% compkied and then released to tumov¢r. j) ProvLslons Pmvision$ Ire rew8nised when th¢ Charity hL% an obligation ai the bal4nce sheet dai¢ as a result of A post ¢venL it is probable that an outtknv of ¢￿10M1¢ l)¢ttEfi15 will be requÉr¢d in settlemcnt and the amount ca be reliabty estimated. Provisions for cyclical rnaiDtenallce or major works to existill8 Stock ar¢ not made wdess they r¢pr¢sent commitments or cknligatirns at ihe Balanc¢ Sbttt date Whe￿ there is Do discr¢ti(ffi to avoid or delay the expenditure. PAz¢ 15 KEI¥DAL AIthISHOUSE CHARrrY NOTL8 TO THE FINANCIAL ￿ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2023 I PrlDtipal Ac(ounth¥ Pollties (COD¢itiued) j) Proviiions {￿￿tIM￿¢d) Reqeledcapiial Gronts Fwid Capitsl grllnts call b¢ recycled under certaiD condition. if a property is sold. or if another relevant event takes place. Recycled grants caD be w%ed for PToje¢ts approved by the Homes and Cornrnunities A￿neY (HCA) and th¢y ¥r¢ credited to th¢ Rewled Capitsl GTtht Fund within liabilitie5. Its certain ¢i￿UMs￿ne¢$, such the sale of housing properties, ¢¥pithI 8Tants may be repayabl¢, and, in th21 evenL 15 Subordinated to th¢ r¢paymeDi of oth¢T loans by agreement with the Homes and Communities Agency (HCA). It is accounted for as soon a5 th¢ liability arists wtthin CreditOTS.' Amounts falling due within one year. any grjni io be recycled or Tepid is less thatt the grant reliting to the disposal, the difference is trea*d ￿ abat￿ Abated 8raDts as a wmponeni of the surplus or deficit on dispo$41. k) Turnover #nd other IDeothe Turnover is ￿¢￿ured llt the fair of the consid¢ratioD rec¢iv¢d or receivlblt includin8 VA T and net of trade discouttts. The FK)lj¢i￿ ￿(W¢d for the re¢o8nition of ttwnov¢r aye as follows: Turnover rer*e*nts Tentsl and service char8eJ in¢ome receiV￿k io th¢ yeu of rent and seTri¢e charge losses from void4 revenue grjnts from the 8ov¢mment (knal authoTities) and the Homes ond Communities A8ency. Properry Alanog¢dty Agents Where the Charity carries th¢ financial Tisk on property managed by a8enf4 all th¢ inccrfne and ¢xpetJditure 8risin8 from th¢ property is in¢lud¢d in the Stalemeni of CompT¢h¢nsive Income. Where the ag¢ney carries the fmancial risK the Ststrment of Comprehenjive Income includes only that income and ¢xpenditure whith relates solety to th¢ Charity. Imeresi and dividendf peceivabl¢ Interest incom¢ is reco8nis¢d ¥$in8 the effrctive intuest method dividezbd In￿Me is r•cognised as the Chority's righi to receive paymtnt is esthblish¢d. l) Routine Rep*lrs *Dd Malnt¢ts*nee The costs of routine repairs and maintenance ¥Je ¢har8ed to the IncLMDe aDd Expendirnre A¢¢ount in the year in which thry are incurTed. m) Extr8ordln•ry Repairs Costs of extraordinary repai￿. wikss representiJl8 Capital itDprovcmenrs to the properties. are charged to thc Income and Expenditure A¢¢ount ID the year in which they ar¢ incurred. n) VAl￿t Added T•x Kendal Almthouse Charity is not registered for VAT. In these finallcial sta¢em¢nt4 Whe￿ aN>licable, expenditllre is shown inclusive of VAT. o) CxrreDt Tax•tio No t&xation is payable by Kendal Alrnsbous¢ Ch￿lty syrK¢ it has cbaritable and its ¢haritable a¢tivities are exemo tax. P*ge 16 KEI¥DAL ALMSHOUSE CHARrrY NOTES TO THE FINANCtAL ￿ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2023 Priti¢lpal AceouTrtillz Polkles I¢oDt(Dued) p) D¢$l¥n*ted *nd Restrltted FyDdJ G¢n¢ral funds aTe unrestrided funds which are available lor ai the discretion of the Trustees fi￿ranGe of the general objectives of the Charity aJMI which have been desi8naied foT other purposes. Designated funds comprise unrestricted fillkn15 that hJve been sd &side by the Tn￿¢$ for particular purposes. Th¢ 4ini use of e¥h d¢sfftgDatrd fi￿d is sd out in the notes w th¢ financial statem￿ts. R¢strict¢d funds are fimds which are to be us¢d ID ￿￿￿dance with specific reslTiCtiorJS imwsed by donors or which have been rnised by the Charity for pwti¢ular purp)ses. The costs of rnising and administering such funds are char8ed agaiNst the specific fund. Th¢ aim and use of e%h fimd is set out iti the notes to th¢ financial statements. Endowment fund$ remyseni those assets which must be held pennanentty by the Charity. principally investments. Income arising on the endowm¢n¢ funds can be wed in accordance with the objects of the Charity and is includ¢d os unrestricted income. Any capital gains or losses arising on the inyestments rom part of the fimd. Inv¢sthient mana8emen¢ charges atMI legal fees relating to th¢ fi￿d ore charged a¥ain$l the fund. Invethtnt inc£￿e and g•tns are allocat¢d w the appropriatr fimd. There ar¢ thret desi8nat¢d fimds in these aecounts.. Property FuDd This r¢presents thai proportion of the cost of &Yoperties which w¥ fin￿red by charitable donations and the Charitys reslwrcu. Cy¢M¢al M•lnten*Tr¢e Fund This Fund represents amounts set &8ide for ¢y¢li¢•l maintenance io meet costs in ¢x¢ess of l￿dgeted ¢xp¢nditur¢ for any year. Extraordinary Rep*firs F￿ld This Fund represeots amounts $¢¢ aside to carry oui unexpected repairs and capital improvements on housing properti¢$. 2 knrd key petSODDel remunera¢kty Key rnan48cm¢nt aTe defmed as the Tnutres. None of the Tn￿te¢S received any emohuncnts or had teimbyTsed expeDW. Th¢ Trustees have a servi¢e agreement with H&H JAnd & Eststes who manage the prryernes on a day to day basis. The management fres payable were Ls follow5: 31112r2023 31n2f2022 MaDagwent fees £40,21XI £45,960 Paze 17 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENV FOR THE YEAR EIWED 31 DECEMBER 2023 3 S￿rp]Us thi Ordill*ry Attlviti 31112r1023 31n2r2022 Sury)lus on ordinary a¢iivities is stst¢d after ¢haTgi Auditors, remuneration iti their capKity as Auditor5 Surplusl(defi¢it) on fair valu¢ movement of investsneDts £6.350 £25.411 £6.350 Auditors, Temuneration irncludes £3.654 for preFw￿￿ the ¥¢couttts. 4 Flxed Amets". Freehold HolliiTrz Prop¢rty Sl¢dall Vi¢toria and AynAm Chapel Nobl￿ Resl Sand¢s Hospitsl John Aston W¥thins Romleigh and Ww Memorial Gard¢ns Tothl Valuation I January 2023 1.370,OLK) 715.OlXI 450.000 180.000 80.CI)O 2,795,000 Additions (Impainnenty (Reverse revaluation) Valuation as ai 31112n023 £1,370.000 £715.OLKI £450,( £180,0 £80,000 £2,795,000 The properties were independently valued on the transfer of 4ssets lo the CIO by Thomson Asso¢iates on 31 May 2018. Two valu3tions were prep¥red, one for market value with vacant possession whi¢h totalled £5,615.000 and one subjeci to almshoux aDd residency rulrictions which equates to exiMin8 u$¢ value- social houJin8 as required by the Housing SORP 2014. The laner is the value uxd in these to comply with the SORP. The wpertie$ were 811 held f(Y letting and reprts¢w￿ 418eneTrl housin8 units. Genernl wo￿5 ￿ properties amount¢d to £88.562 (2022- £68,191}. The ori8inal cost of th¢ Prowlies is a mix of the ￿lU￿10n at the tim¢ of trattsferkn th¢ rh•rity and subsequent d¢velopmen¢ work amounts lo £2,895,407 less So¢ia] Housin8 ￿lts of £449,120. Jtnpaimient losses of £659.697 are iti¢luded in those P•ge 18 KENDAL ALMSHOUSE CHARrrY NOTLS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Ass¢t ID th¢ ¢ovrye of eonstr•¢tirfJll Roml¢Tgh Totsl Additions 641,486 641.486 Cost at 31 December 2023 £641.486 £641,486 Grants of £156.ONJ were re¢eived from Homes Fthgl4nd towards thi% development in the year a further £40,000 was received from W¢stmorland and Furne55 Council in January 2024. All the properties gre going to be rev1￿co n¢x¢ y¢aT once the development has been ¢ompkteiL Inv¢sthMents Eilraordlllary Permanent Cy¢]k*l Repai E*dowmenl M*lnttD•4¢e Fund Fund Tot•1 Historical cost At l JanuJry 2023 46,102 13,714 44.357 104,173 Histori¢￿ cost at 31 De¢¢mber 2023 fA6,102 £13,714 £44.357 £104,173 Market valu¢ at l January 2023 Unrealised $UTplus/{deficit) 184,761 17.155 55,814 4,030 69,991 4226 310,566 25.411 Market value at 31 December 2023 £201,916 £59,844 £74,217 £335,977 All the inveslments are placed with COIF and M&G. Debton: AmouDts F#lllD8 Dje Within One Year 3111Y2023 3111212022 Ai restated Weekly maintenaA¢e contribwi¢)ns Other debtor5 PrePa￿ents 1,553 1,284 7.635 398 7,118 £10,472 £7.516 7 Credliors: Amo•nts F*lll•g Due Wfthin Om¢ Y￿r 31112ll023 31112n022 Trnde Cr￿ltOrS Bank l¢)an due within one yur Grant T¢ceiYed for ￿e1 in the course of coAsffii¢tion Assd irt the course of constNthion contracted expejws Accrua]s pod deferred income 68,243 6,417 156,000 289.267 6.600 17.427 13.882 £526,527 £37,909 The contrxted expenses ar¢ by further iofin (knvdowns and 8[￿ts. P*ze 19 FOR THE YEAR ENDED 31 DECEMBER 2023 8 Creditorj: Amo•nts Falliwg Du¢ Alier One Yur 31n2n023 31112Q022 Banklogn due after one year 291263 196.376 £291,263 £196.376 The loan 13 T¢PAyknle over 25 y¢•rs. interest onty for the fust hvelv¢ month4 with interest char8ed at rate +2.1•A. Th¢ loan is secured by a chwg¢ on th¢ freehold bousin8 woperty ￿ Nobles Ke5t. D¢bt Ba8ed on the lenders ¢8rli¢st r¢paymtht date. b(￿l￿8S ue repayabk 8$ follow5: 3111212023 31111Q022 Within one year or lyn demand One year or MO￿ but les5 ¢wo year5 Two years or rn0￿ Iwt less thall five Five years or moY¢ 6,417 15.400 61.61x1 214,263 13.882 14.354 44,713 137,309 £297,680 £210258 9 C•pltsl gr*Trt> re¢¢lved The charity hus rE¢¢iv¢d &85istsDce in rtnovatiOD wojects from the Homes and Community Agency and Westtnorland #nd Furness Coun¢il by way of grants whi¢h would onty be tepayable if the charity were to Jell the properties or cettse actirL8 as a social housin8 tnLSt. As this ts a remrf¢ pos8ilyility no provision for these has been made in these a¢¢ounts. The 4mownts involved pr¢ 8$ follows: 31112n023 3111212022 Sl¢ddall Victoria and Aynam Chapel Nobles Rest Sand¢$ Hospitsl John Asion Watkins Roml¢i&h and War Memori41 Gardens 618.960 115,423 102,197 27,540 34,028 618,960 115,423 102,197 27,540 34,028 £898,148 £898,148 This does Dot in¢lud¢ th¢ Current grants rtteived slk)wn in Creditors.. thie within one yw. P*ge 20 KENDAL ALMSHOUSE CHARrrY N￿s TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2(123 10 Perm#*ent EMdowm¢Trt Fmids Fern￿￿ent Investment Emdowmetht Revaluat￿n FwDd Fund Total Balance at l Janw 2023 Unreali5ed surplus 13.714 42.100 4.030 55.814 4,030 Balan¢e 41 31 December 2023 £13.714 £46.130 £59.844 I l De418tt*ted F•ndJ ExtrAordln*ry Cy¢lk*l Rep*trs M*lntenan¢e Fund Futtd Property Tot•1 Bal￿¢¢ al l January 2023 Trfs (loyfrom Accumulated In¢om¢ reserve Inv¢sthi¢n¢ in property Trnnsfer for Decent Homes Stsndard 1.884.334 151,499 (8.760) 61.270 15.586 2,097,103 6,826 (94,887) 15.000 (94.887) 7,500 7,500 Balance at 31 De¢¢mbeT 2023 £1.789.447 £150239 £84,356 £2,024.042 The Prom ￿nd wr¢s¢nts iniernal fvnds itiv¢ste41 tn propety. The other funds rep￿5¢￿1 funds set &gAd¢ for fikn WOTks on properry. 12 Property Rev*lu*tioD Rexrve Sotlal Hou$lh% RevAlu*tlon R¢Krve Tot41 Balanc¢ Ai l January 2023 Mov¢m¢nl in the year 714,290 714,290 Bal8n¢e at 31 tkcember 2023 £714290 £714,290 13 1Dveslmtttt R¢Y*lllatioD Raerve Ex¢r*ordlDary Cyelic81 Repalrs M*Inien*J￿¢ R¢v*luatwJ Revaluation Totsl Balance at l January 2023 Unrealiwd sury)lus 138.659 17.155 25,634 4.226 164,293 21,381 B4ian¢¢ at 31 December 2Q23 £155,814 £29,860 £185,674 P4e 21 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ￿ATEmENrS FOR THE YEAR ENDED 31 DECEMBER 2023 14 Aeturnuknted lffj¢omt Rfservt BalaThce at l January 2023 113.009 Prior year adjustment re prepa￿llents (9.000) Balance at l JJDu•ry 2023 as T￿l￿d 104,009 Sllryh￿ for tht year ended 31 D￿effjb¢r 2023 47,339 Transfer froml(to}'. Invesm)enl ID property. Joan mov¢mcnts Investmenl in propety- addition$ D¢si8nated extrAordinary ryTr fund under sw Desi8naled fvnds- cyclical main¢¢nats£e fund undu spend Designated funds- Decent Hom¢$ Sthttdard 94,887 8,760 (15.586) (15.000) 73,061 Balance at 31 December 2023 224.409 IS An•ty$h of net auets b¢twttD fum T•tt%lbk Flx¢d Auets IDVtJtseDts Credlton due after ole year Total Net CuTr¢n¢ Lknbbllty 31112r2023 P¢rnianenl endowm¢rtt funds Designated fimds Propety revalualion res¢rve Investment revaluatioti reserve A¢¢umulatcd income reserye 59,844 ,459 59,844 2.024,042 714,290 185.674 224,409 2.080.710 714290 144,136 (291263) 185.674 641,486 (417.077) £3,436,486 £335.977 (272.941) (291.263) £3.208,259 The net current liabiliry position 1$ covered by &•wdc•wns 4ttd promis¢d grants. T*ngilAe Invutmevjts ￿￿¢0 Crtdltors due afttr Tot*1 Net Currenl Comparntivu.. OD¢ yt¥r 31112r2022 Pennan¢nt ¢ndowment funds Des1￿￿al¢d fimds Property revaluation reserye Investment rvv&luation Teserv¢ Accurnulated income reserve 55.814 90,459 55.814 1097,103 714.290 164.293 104,009 1080.710 7142 122.310 (196.376) 164293 104,009 £2.795.(K)) £310.566 226,319 (196,376) £3,135,509 P•Ee 22 KENDAL ALMSHOUSE CHARTrY Regknter¢d Charity Nllmber 1172208 Emtland 5097 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 St*bles ThompsoD & Brix Chart¢T¢d Aeeouitsnts Ststmtory Audbto KENDAL ALMSHOUSE cHAR￿y FINANCIAL STATEMENTS FOR THE YEAR ENDED 3) DECEMBER 2023 Clwity Inforniation Tnytces, Report Statement of Tn￿te¢s, R￿p￿Ibili￿¢s Jndepend¢nt Auditors, Report 8-10 ststement of Compreknenjive Income ststement of ChaD8es iti R¢serves 12 Ststtment of Financial Posiiif 13 Notes to the FinAncial Stst¢m¢n 14-22 KENDAL ALMSHOUSE CHARITY CIIARrrY INFORMATION Established u CIO 22 March 2Q17 Principa] Offi Suite I, Cutnbria Tourism Business Centre Winderniere Road Stsveley LA8 9PL Rewstered Numbers Registu￿ Charity Number 1172208 Homes and Communities Agency Registration Number A1059 Trusw$ Mr P G [*jcks￿ ( Chair) Mrs C D(dwell (Vice Chair) Mi55 S J Barrott (•ppointed 17 July 2023) Mrs H Filch M5 L Gray Mrs J Hale Miss D l￿nd Mr J Stirling Managing Ageni H & H land & Eststes Suits l. Cumbria Tourism Busin¢sJ Centre Staveley IA8 9PL Tel- 01539 721375 Banke Bar¢lays Bank Pk 9 Highgttr Kend¥l Cumbria LA9 4DF tndcpendent Audiiors Stsbles Thornp￿n & Bris¢oe Chartered Accountants StsMiory AuditorJ wther House Kendal LA9 4DX P*te I KENDAL ALMSHOUSE CHARr TRusfEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 21ll3 Th¢ Truste¢$ present their report and the audited fmanciil ststements fw th¢ year ended 31 December2023. Governance, Alms, Str¥ttsre and Maty*iernent The K¢Dd41 Ahnshouse Chariry was Origi￿lty five charit4bk organisatii)ns re8iSteTcd with the Charity Commission. In 1987. th¢ Charities were amalgamated fv create the Kendal AlMSh￿J3e Charity wider i MemOT￿dUrn of Asgoci•lion which e5tsbli5hed the objects and powers of the charitsble or8anisation, dated 2 D￿ernber 1987. In 2014 the assets alld liabilities of Kendal War Memorial Tru51 w¢re acquwed by KendAI Almsh￿$¢ Charity. In March 2017. the Charity Commission approved th¢ Conversion to * Cb•ritable IncoTPQrnted Org4ni$ation (CIO). AII the as5e¢s •od opeTation3 w¢re transf¢rr¢d into the CIO from June 2017. The Clwity NumbeT of the CIO is 1172208. There are ¢ighi Trustee5 11 th¢ date of this repor( with one new tnwtee re¢niited during the ]ast year. Mr P G Duckibury remain3 Chair. Mrs C Dodwell Temains •$ Vice Chttir. Mrs J H&le is ¢WY¢Dtly Ch•iT of ihe Finan¢¢ Committee, Mr$ 11 Fitch is Chair of the Lettings Cottunitt¢e Miss D Lund is Chair of th¢ Building Committee. Ten Th￿¢3 would be the ideal swc¢ur¢. are ell￿1￿8¢d to,knelwo￿. to find $uitsble new Truste¢$ and the Chority adv¢rti*$ position5 Available. Th¢ skills of the Tr￿￿et9 aT¢ regularly reYiewe4 and they are 411 encouraged to th a lead in an aspe¢t of the Charity business. Ea¢h Tru￿et IJ appoint¢d to at least one of the thr¢¢ CLYnmitie¢s' FinanK Buildings or Lettiny. It 1$ the policy of the Charity ts) appoint TnLSt¢¢8 with expwi¢nce in the kt¢in8 of residenliil property. ￿re of the ¢lderty and those in need building Cons￿on. fmantt. iDvestrnent l¢gal matters. Prior to appoiniment of new Trn$iee4 th¢ cwNlidaks are Fyovkled with an induction pAck wbich includes the GoverniD8 Instrument and minutes of r¢¢¢nt quarterly m¢etin8s of the ¢ommittees and the full Thi$te¢s. The Chair and cle￿ meel candidates to dTs¢¥s$ the background history and policy of the Ch￿￿ty. together with the fijture plans and objective5 of the organisati(yn. ￿fOre their #ppointsnenL Ea¢h ￿￿tential Trustee attends a quarterty Tr￿te¢ medin& as on observer. before being •PPQiDted. ChorRty Commission pubiic*iiJns gre also made awailabie. together with publications from the National A5$0¢i8tion of Almshouses of which Kendal Almshowe Chgrtry is a member. The stsndard of Alm5houyc Managemeni publication made available for ¢andidat¢3. New Thistees aTe issued with 4 Tr￿￿ee HaDdiYNJk wbich details how the Ch*ity is run and what is exF￿¢¢d of them. The implications of being a R¢gts*red ￿la1 Housin8 Provider ate also explatned to new Tn￿e¢s. P4e2 KEND.4L ALMSHOUSE CHARITY TRUSTELS, REPORT FOR THE YEAR XNDED 31 DECEMRER 2023 truc Th¢ Finance Committcc meets at It￿ every quarter, bcfor¢ ￿ch quarterly Trnslee mretin8. The txttin8 Committee 4nd Building Cornmittee Me￿ ￿￿￿tarly. Rectnily app)inicd Trustecs are appointed to a specific Committee whi¢h is rel¢vaM to iheir exp¢ri¢n¢¢. All eommitte¢s ￿MprISe a minimum of three I"rus*es and operate und¢r t¢rnis of reference. The Letting Committee rnccts to decide to app)ini applicants 5eekin8 a hom¢, based on the aims and objectives of the Charity and th¢ cir¢umstsnccs ofthe individual applicants. It a150 lia￿Se$ with the Building Committee 05 regards UP8rading of vacani units. Th¢ fun¢tion of the Buildin8 Commitl¢e is ￿ adv¢se the Trustee5 on major Improvemen￿ refurbishment schemes and th¢ ¢on¢lu$ions of the quinquennial stsrvey ￿ports. Quin4uennial repons are ob(aincd on thc general conditlDn of the housing stock with rccommcndation5 on improvemenls and ur8ent repairs needed. 'IThc5e r¢ports Irc undcrtikcn by a professional Building SurvcyoT. Quinqu¢nnial inspectbon5 w¢r¢ I￿t undenaket) in 2020 arml we will be going out to tender for quinquenttill 5urvey5 Qn all thc pmperry 5￿k later thi5 year. Th¢re are t)0 Si8nifi¢ant buildin8 repairs requir¢d but there is an on8oin8 pro8ramme of repl#¢ing boilers. internal up8rad¢s and exiernal dccora(ion. Thc Building Committ¢¢ has been con¢entr&ting on the redevekjpment of the"Roml¢i8h" site which be¢n vi¢ani since 2019. Plannin8 pennission was obiained durin8 2021 to demolish ihe bungalow and r¢build with ¢wo scmi. d¢ta¢hed orte ￿dr￿rn dwellin&8 and a new plannins gpplication lo vary ihe design was submitted in 2022 (approvcd Febru8ry 20231. I,ollowing Thvo icndcr processes. a prtferred wn¢ra¢lor apix)inied with a contract price of £541.505.35. Work on 5il¢ ¢ommenc¢d in July 2023 with completion schedulcd for April 2024. Thc Ch￿lty has secured total grani fvndin8 of £248.(KIO: £208.000 from Ilomes England and £40,000 from W¢simorlBnd & Furness Council IWFC). 'lknc Charily Iw r¢¢cived the WFC grant in full Ind 75% ofthc Homes, England, wilh th¢ r¢maining 25% due on ¢omplthMJll. The Charity obtain¢d a loan from Charity Bank in the sum of £480.000. tsf whi¢h was use4J to settle the outstandin8 Fjarclays loan taken oui for thc refurbi%hm¢nt of ihe Sleddal Vicloria Almsht)u$es after the devastation causcd by fl(xMlin8 in 2015, resuliing in nct borrowin8s ofc.£270.0(H) towar¢ts th¢ Ruml¢igh project. The Inan was se¢ured again51 the propcrtics ht Nobles Rest. 'I'he full gmount of the IoAn has now been drawn down. with the final amouni done on 22nd M8r¢h 2024. Thc rcmaining ¢051 of ihe Roml¢iBh projcct is being from ihe Charily's T¢s¢rv¢s. further dctsils of which are providcd bclow. At the lime the loan was (ak¢n OUL thcrc w&$ somc unceriainly about £IOO.OCKI of the 8rant fundin8, which 5ubs¢qucntly awarded. Con5cquently wherra5 it wa5 anticipated that the Charity would usc £200.000 of its reserve5 for th¢ proj¢cL it is rtow cxpected to be ¢loser to £lOO,(K￿l. The ¢harity follows th¢ nbles amd rrgulaliL￿5 of Homes England. em The I'inan¢c Comrnittec monitors the suitsbility and adeqU￿Y of the investments. taking into account ihe OPer￿lOn8[ and ￿htr requirements of th¢ Charity. It normally rn￿ts imm¢dia*ly prior ￿ the full trustees me¢iin& providing a¢¢urate and iimely rewjrting. The A￿DU￿at￿ are Regi￿er¢I AudilLYS. and thc CEerk is a member of the knyal Instittrte of Chartered Surveyors. PAEe 3 KE￿TrAL ALmsHO￿sE CHARITY TRU￿EEs, RKPORT FOR THE YEAR EYL DED 31 DECEMBER 2•23 Risk MaThaLemcnt ontinued Together with the existirtg tnana8ement slruclure and administrative 8rrangerncTrt5 in place, regular monitoring of the agreed risk management policy and applicable indemnity in$tsr8nc¢ arTangun¢nts. the Trusttts att ￿l$fIed that 4ppropriate risk management practirtt are in plac¢ to meet the needs of the Charity and protrd its activities. To addres5 the potcntial risk u50ciaied with ihc irnpendin8 retirement of ihc Clerk, the Trustees have agreed pnd Signed a Se￿iCe Ikvel Agrtement with the Clerk's professional offirc5 H & H Land and E5tate5. Chortered Surveyorg. The Clerk's h8$ instiwed the gr*lual transfer and delegauon of the Clerk'5 duties to collea8UeS, including the Accounts and Administrntion Deparrni. The Service Jxv¢l AgrE&nent is ￿￿]eWed at each quarterly meeting. The Trusl re8ularly reviews its w)licie5 by looking at two io thrt¢ at each quarterly mectin& During 2023. up to the prc¥eni dal¢. almost all the policies and th¢ risk ¥ssessmeni have been reviewed and updatcd. 'lknere li some risk 8SSC¢d ID ihe AuditoT's resp)nsibilitie5 for the audit of th¢ fmanci&l statements section of Cw report. We are itidependenl of the ￿SocIatIon in a¢eordance with the ethical requirejnents that are relevani to OUT audit of the fffjancial ststements in the UK iticludin8 the FRC'S Ethical Standard, we have fijlfilled our other ¢ihi¢al r¢S￿nsibIlItIe9 in accoTdanu with these requirem¢Dts. We b¢li¢ve that the audii ¢vidence we have obtained is suffi¢ien¢ 8od appropri•te io ptovidc a b•$iJ for our opinion. ConcluJlonJ relatlDe ¢0 golni ¢oDee In auditing the financial stotem¢nts. we have ¢on¢h]ded that the both'$ Use of the goin8 concern b￿1$ of accountin8 in the preparation of the fJnBncial $tst¢ments is apwipriate. Based on the work w¢ have perfonne4 we have nol id¢niified any mat¢Tial uncertainties rel￿1Th8 io events or ¢onditions thaL individually OT wll¢dively. may ¢aM $ignificani dou￿ on the association's •bility ¢0 coTJlinu¢ 8$ a 80ing ¢on¢ern for a period of 01 least twelve months from wh¢n th¢ financial sts*ments are authori8¢d for issue. OUT r¢8ponsibilities and the resPO￿lb]litIeS of the trf>Ard with ffspect to going fontern are sks¢nb¢d in the r¢l¢vAnl 8ectiony of thi$ reiwL Other inform#tloD The other infonnation compnses th¢ infornwtion in¢luded ID the Trujtees, Rep(Yt. thon the financial ￿te[llents and our auditor's report thetron. The iwrd are responsibl¢ for the other inforniatiOD CODtained within the Trystees, Report. Our opinion on th¢ fmancial statements does cover th¢ other infonnation an4 excep¢ w the extent othmwise explicitly thied in our reporf, w¢ nsibk for ass¢uing the &wciation's ability to ¢ontinue as a 8oin8 concern, disclosin& a5 applicable. matters related ¢0 goin8 concern and Using the 80in8 concern basls of I￿OUnting unless the board either int¢nds to liquidate the associaiion or lo cease oFrations. or ha8 no realistic ahernative but to do $0. Audltor'i r¢sponslbllltks tor tb¢ 4¥dll of the nw•nei*l itAteYll¢n¢s Our obje¢lives are to obthin re￿onable aSSUTanc¢ 8boui whether th¢ fmancial ststernents L4 4 whole ure frte fTr)m m*erial misstatemenl whether thie to fraud or em)r. and ￿ issue an audttor's report that includes opinion. Reasonable assurance is a high level of assurance. but is not a guaranttt that an audit conducted in aC￿rdanCe with ISAS (UK) will always det¢¢t a material mi5slatement when it exists. Missia¢¢ments can arise from fraud OT error and are considered material if. individually or in th¢ aggregale, they could redsonlbly be expected io influen¢e the economic decisions of us¢rs iaken on the basis of these financial statements. Irregul4rities, includin8 fraud, aTe instanrxs of nonw¢ornpli•n¢¢ with laws And r¢8ulo1ions. We desi￿ procedures in line with our responsibilities. outlin¢d above. to deteci material misytsiernents in rtspeth of irr¢gularities. Includin8 fraud. Th¢ spccifK proc¢dure5 for this engagement and the extent to whi¢h these are capable of d¢tedin8 irresularities, including ft¥ud is deiail¢d ￿lOw- We identified areas of laws and regula¢ioDS thai could ttlsonably be expxt¢d io h•ve * rnaterial effect on th¢ fu￿1¢1 $t4tements from our experien¢e and from discussions with mana8ement. We miewed aDy related corresponden¢¢ Ind re¢ord$ of trusttt meetiny to ¥ssess compliance with laws ¥nd regulations and discu55ed the current position with man4g¢ment. We ensured the Judit were alert for any indi￿tionS of nonanei•l statements are ￿t ijut below. These wlicies have ixen con$istentty applied ￿ All years presented un1¢55 otherwise stai¢d. As a sm411 entity. the Ch8rity is not required to a C•th F]ow Ststement. c) Golns ¢oTree The trust¢es wnsId￿ thji there are DO materiAI uncert4iniieJ ab￿J1 the Charitys ability ¢0 ¢Ontinue 8 8oin8 concern. d) Tan8iblt nxed *sRts Tangibk fixed &ssets (ineludtn8 soci•1 h￿j$1￿8 prr4Xrtie$) are stst¢d •t cost or valuation less ac¢uJnulated depre¢io1im and accumulated impainn¢nt losses as appropriate. Cost includes costs direthly attribu¢able to making the &85et capable of opernting os intended xucb ￿ the ￿$1 of acquiring land and buildin8s, development cost& interest charges i)n loans during the deve]opm¢nt Peri￿1 and expenditure on improvtrnents. Expendi￿re on improvements will be capitslis¢d when il results in incTemen¢al ￿ture ben¢fii$ such as iti¢Te*sittg rental incom4 reth￿ing mJllbt¢nance costs or r¢sulting in * Significant extension of the useful economic lif¢ of the proiwty. The Charity's lan￿￿1¢ r￿ed assets ar¢ made up of housing proFrti¢s which are PTin¢ipally almshowes some of which weTe acquired in 1887 and have tKeviously been record￿ in the accounts •t cost. which wa$ well below the existing u5¢ vthlue &$ g￿la1 housing (EUV - SH) or open morkd volue. When the properties were transferred to the CIO the OP￿)rtunity was tsken to value the prop¢rties And the EUV-SH value has been brought into these accounts (see notr 4). Depr¢ci￿10n is provided on all taDgib]e r￿ed assets. at rates cakulat¢d lo wrile off the cosL less ¢stimated residual value. In th¢ ctse of the housin8 properties held at valuation, depT￿l￿10n is considered to be immaterial due to the hi￿ Tesithial value so is not I￿0Vided. Fre¢hold IAnd TS not depTeciated. Housing under c1x￿¢tim are depre¢14￿ until they &re in use and the useful economic live5 of 811 fixed assets att reviewed annualty. KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ￿ATEMEl￿rS R THE YEAR ENDED 31 DECEMBER 2023 Prlmclpal Ac¢ounllng Pojieles (eo•thbued) d) TaDiibk fixed an¢ts (conthiu￿} As the housing properties are now $hiwm at existin8 uje valuation for Social hous]￿ and the open market value of these prop¢rties is rou8hly twice the EUV-SH value, the residual value of the properties is considered w be higher than the ¢aTryiDg value 4nd #s such deprtcitition 15 not provided. The Valuatio￿ wiu be reviewed on a regular basis. e) Debtorj and trediton rtttfvablt I p4y*ble wlthth one ymr Debtors and cr¢ditors with no stat¢d interest rate and r¢¢¢iv•ble or payabl¢ within one y¢gr ar¢ rccorded at transa£tion prite. Any 105ses arising from inyirneth are r¢c08n1￿ in the sthtement of comprehensive in¢ome in other admini8lTative expenses. Rights of social landlords to have improvement works ¢arried oui to prosXrtie5 by a third party (Such as lo￿[ authority) are ttco8nised as prepa￿ents where p•yTrent bas oc¢urr¢d in adY8nce of th¢ works bein8 ¢•rri¢d out and receipts in advance from the same third party recognised &q liabilities. Asseis and liabilities or income and eXpethdtti￿C art not otTs¢L Prlor ye•r idlllslmeDt- correctlon Of ¢rror Hi$ioricalty the quarter of H & H Land and Ests*5 fees were in¢lud¢d as a Prepa￿nent on the mi$tsk¢n understanding the fees were ¢harged in advaty¢e. This w&s itieorre¢i and the prep#)m¢nt ha5 been r¢moved. As thiq goes back many y¢•Ts there is no err¢rt on the Income gnd Expendi￿re A¢wuni but only on the Ststemeni of Financial Position where De￿ord •nd the ￿ight forward balance on the A¢¢umula*d Income resefft have be￿ r¢du¢¢d by £9,000. Invesithents Investments are recogni￿d iniii#lly at cosi. Subsequent]y. they ar¢ measured ai fair vlllue through the statement of Comprthensivr income if the sh8r¢5 are publicty trthd or their fair volu¢ ¢kn otherwis¢ b¢ measwed reliabty. Other inve￿nents are me&￿￿ at CO￿ less tinp4irnient. h) 1Am￿ Ald borrowlDV Loans and borrowings are initially recognised •¢ the trans&¢iion price including trattsaction costs. Subsequentfy. they are measured 41 amortised ¢051 using th¢ effective interest rate meth4)d, less imparnnent. If an aJran8ement coLstimtes a fmancing transaction it is measured at pres¢nt valu¢. i) So¢i41 Ho4slni Gri*ts {SHG) #Ad Otber Grants SHG r￿e1Ved ￿ a want towards expenditurr ij matched a￿1n&t that expenditure by being inelud¢d in turnover tn the incorne and exp¢nditUTe account. The related expenditutt is included under op¢rd¢ing costs. SHG is recogllised in the same period as the relakd expenditure Provided the ¢onditions for ILS r¢¢eipt have been 5Stisfied and tbere is re￿nable assurance that the wani will be rtceivcd. Capital 8r8nts are showm in liabiltti¢s iintil the w*iect i% compkied and then released to tumov¢r. j) ProvLslons Pmvision$ Ire rew8nised when th¢ Charity hL% an obligation ai the bal4nce sheet dai¢ as a result of A post ¢venL it is probable that an outtknv of ¢￿10M1¢ l)¢ttEfi15 will be requÉr¢d in settlemcnt and the amount ca be reliabty estimated. Provisions for cyclical rnaiDtenallce or major works to existill8 Stock ar¢ not made wdess they r¢pr¢sent commitments or cknligatirns at ihe Balanc¢ Sbttt date Whe￿ there is Do discr¢ti(ffi to avoid or delay the expenditure. PAz¢ 15 KEI¥DAL AIthISHOUSE CHARrrY NOTL8 TO THE FINANCIAL ￿ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2023 I PrlDtipal Ac(ounth¥ Pollties (COD¢itiued) j) Proviiions {￿￿tIM￿¢d) Reqeledcapiial Gronts Fwid Capitsl grllnts call b¢ recycled under certaiD condition. if a property is sold. or if another relevant event takes place. Recycled grants caD be w%ed for PToje¢ts approved by the Homes and Cornrnunities A￿neY (HCA) and th¢y ¥r¢ credited to th¢ Rewled Capitsl GTtht Fund within liabilitie5. Its certain ¢i￿UMs￿ne¢$, such the sale of housing properties, ¢¥pithI 8Tants may be repayabl¢, and, in th21 evenL 15 Subordinated to th¢ r¢paymeDi of oth¢T loans by agreement with the Homes and Communities Agency (HCA). It is accounted for as soon a5 th¢ liability arists wtthin CreditOTS.' Amounts falling due within one year. any grjni io be recycled or Tepid is less thatt the grant reliting to the disposal, the difference is trea*d ￿ abat￿ Abated 8raDts as a wmponeni of the surplus or deficit on dispo$41. k) Turnover #nd other IDeothe Turnover is ￿¢￿ured llt the fair of the consid¢ratioD rec¢iv¢d or receivlblt includin8 VA T and net of trade discouttts. The FK)lj¢i￿ ￿(W¢d for the re¢o8nition of ttwnov¢r aye as follows: Turnover rer*e*nts Tentsl and service char8eJ in¢ome receiV￿k io th¢ yeu of rent and seTri¢e charge losses from void4 revenue grjnts from the 8ov¢mment (knal authoTities) and the Homes ond Communities A8ency. Properry Alanog¢dty Agents Where the Charity carries th¢ financial Tisk on property managed by a8enf4 all th¢ inccrfne and ¢xpetJditure 8risin8 from th¢ property is in¢lud¢d in the Stalemeni of CompT¢h¢nsive Income. Where the ag¢ney carries the fmancial risK the Ststrment of Comprehenjive Income includes only that income and ¢xpenditure whith relates solety to th¢ Charity. Imeresi and dividendf peceivabl¢ Interest incom¢ is reco8nis¢d ¥$in8 the effrctive intuest method dividezbd In￿Me is r•cognised as the Chority's righi to receive paymtnt is esthblish¢d. l) Routine Rep*lrs *Dd Malnt¢ts*nee The costs of routine repairs and maintenance ¥Je ¢har8ed to the IncLMDe aDd Expendirnre A¢¢ount in the year in which thry are incurTed. m) Extr8ordln•ry Repairs Costs of extraordinary repai￿. wikss representiJl8 Capital itDprovcmenrs to the properties. are charged to thc Income and Expenditure A¢¢ount ID the year in which they ar¢ incurred. n) VAl￿t Added T•x Kendal Almthouse Charity is not registered for VAT. In these finallcial sta¢em¢nt4 Whe￿ aN>licable, expenditllre is shown inclusive of VAT. o) CxrreDt Tax•tio No t&xation is payable by Kendal Alrnsbous¢ Ch￿lty syrK¢ it has cbaritable and its ¢haritable a¢tivities are exemo tax. P*ge 16 KEI¥DAL ALMSHOUSE CHARrrY NOTES TO THE FINANCtAL ￿ATEmENTs FOR THE YEAR ENDED 31 DECEMBER 2023 Priti¢lpal AceouTrtillz Polkles I¢oDt(Dued) p) D¢$l¥n*ted *nd Restrltted FyDdJ G¢n¢ral funds aTe unrestrided funds which are available lor ai the discretion of the Trustees fi￿ranGe of the general objectives of the Charity aJMI which have been desi8naied foT other purposes. Designated funds comprise unrestricted fillkn15 that hJve been sd &side by the Tn￿¢$ for particular purposes. Th¢ 4ini use of e¥h d¢sfftgDatrd fi￿d is sd out in the notes w th¢ financial statem￿ts. R¢strict¢d funds are fimds which are to be us¢d ID ￿￿￿dance with specific reslTiCtiorJS imwsed by donors or which have been rnised by the Charity for pwti¢ular purp)ses. The costs of rnising and administering such funds are char8ed agaiNst the specific fund. Th¢ aim and use of e%h fimd is set out iti the notes to th¢ financial statements. Endowment fund$ remyseni those assets which must be held pennanentty by the Charity. principally investments. Income arising on the endowm¢n¢ funds can be wed in accordance with the objects of the Charity and is includ¢d os unrestricted income. Any capital gains or losses arising on the inyestments rom part of the fimd. Inv¢sthient mana8emen¢ charges atMI legal fees relating to th¢ fi￿d ore charged a¥ain$l the fund. Invethtnt inc£￿e and g•tns are allocat¢d w the appropriatr fimd. There ar¢ thret desi8nat¢d fimds in these aecounts.. Property FuDd This r¢presents thai proportion of the cost of &Yoperties which w¥ fin￿red by charitable donations and the Charitys reslwrcu. Cy¢M¢al M•lnten*Tr¢e Fund This Fund represents amounts set &8ide for ¢y¢li¢•l maintenance io meet costs in ¢x¢ess of l￿dgeted ¢xp¢nditur¢ for any year. Extraordinary Rep*firs F￿ld This Fund represeots amounts $¢¢ aside to carry oui unexpected repairs and capital improvements on housing properti¢$. 2 knrd key petSODDel remunera¢kty Key rnan48cm¢nt aTe defmed as the Tnutres. None of the Tn￿te¢S received any emohuncnts or had teimbyTsed expeDW. Th¢ Trustees have a servi¢e agreement with H&H JAnd & Eststes who manage the prryernes on a day to day basis. The management fres payable were Ls follow5: 31112r2023 31n2f2022 MaDagwent fees £40,21XI £45,960 Paze 17 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENV FOR THE YEAR EIWED 31 DECEMBER 2023 3 S￿rp]Us thi Ordill*ry Attlviti 31112r1023 31n2r2022 Sury)lus on ordinary a¢iivities is stst¢d after ¢haTgi Auditors, remuneration iti their capKity as Auditor5 Surplusl(defi¢it) on fair valu¢ movement of investsneDts £6.350 £25.411 £6.350 Auditors, Temuneration irncludes £3.654 for preFw￿￿ the ¥¢couttts. 4 Flxed Amets". Freehold HolliiTrz Prop¢rty Sl¢dall Vi¢toria and AynAm Chapel Nobl￿ Resl Sand¢s Hospitsl John Aston W¥thins Romleigh and Ww Memorial Gard¢ns Tothl Valuation I January 2023 1.370,OLK) 715.OlXI 450.000 180.000 80.CI)O 2,795,000 Additions (Impainnenty (Reverse revaluation) Valuation as ai 31112n023 £1,370.000 £715.OLKI £450,( £180,0 £80,000 £2,795,000 The properties were independently valued on the transfer of 4ssets lo the CIO by Thomson Asso¢iates on 31 May 2018. Two valu3tions were prep¥red, one for market value with vacant possession whi¢h totalled £5,615.000 and one subjeci to almshoux aDd residency rulrictions which equates to exiMin8 u$¢ value- social houJin8 as required by the Housing SORP 2014. The laner is the value uxd in these to comply with the SORP. The wpertie$ were 811 held f(Y letting and reprts¢w￿ 418eneTrl housin8 units. Genernl wo￿5 ￿ properties amount¢d to £88.562 (2022- £68,191}. The ori8inal cost of th¢ Prowlies is a mix of the ￿lU￿10n at the tim¢ of trattsferkn th¢ rh•rity and subsequent d¢velopmen¢ work amounts lo £2,895,407 less So¢ia] Housin8 ￿lts of £449,120. Jtnpaimient losses of £659.697 are iti¢luded in those P•ge 18 KENDAL ALMSHOUSE CHARrrY NOTLS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Ass¢t ID th¢ ¢ovrye of eonstr•¢tirfJll Roml¢Tgh Totsl Additions 641,486 641.486 Cost at 31 December 2023 £641.486 £641,486 Grants of £156.ONJ were re¢eived from Homes Fthgl4nd towards thi% development in the year a further £40,000 was received from W¢stmorland and Furne55 Council in January 2024. All the properties gre going to be rev1￿co n¢x¢ y¢aT once the development has been ¢ompkteiL Inv¢sthMents Eilraordlllary Permanent Cy¢]k*l Repai E*dowmenl M*lnttD•4¢e Fund Fund Tot•1 Historical cost At l JanuJry 2023 46,102 13,714 44.357 104,173 Histori¢￿ cost at 31 De¢¢mber 2023 fA6,102 £13,714 £44.357 £104,173 Market valu¢ at l January 2023 Unrealised $UTplus/{deficit) 184,761 17.155 55,814 4,030 69,991 4226 310,566 25.411 Market value at 31 December 2023 £201,916 £59,844 £74,217 £335,977 All the inveslments are placed with COIF and M&G. Debton: AmouDts F#lllD8 Dje Within One Year 3111Y2023 3111212022 Ai restated Weekly maintenaA¢e contribwi¢)ns Other debtor5 PrePa￿ents 1,553 1,284 7.635 398 7,118 £10,472 £7.516 7 Credliors: Amo•nts F*lll•g Due Wfthin Om¢ Y￿r 31112ll023 31112n022 Trnde Cr￿ltOrS Bank l¢)an due within one yur Grant T¢ceiYed for ￿e1 in the course of coAsffii¢tion Assd irt the course of constNthion contracted expejws Accrua]s pod deferred income 68,243 6,417 156,000 289.267 6.600 17.427 13.882 £526,527 £37,909 The contrxted expenses ar¢ by further iofin (knvdowns and 8[￿ts. P*ze 19 FOR THE YEAR ENDED 31 DECEMBER 2023 8 Creditorj: Amo•nts Falliwg Du¢ Alier One Yur 31n2n023 31112Q022 Banklogn due after one year 291263 196.376 £291,263 £196.376 The loan 13 T¢PAyknle over 25 y¢•rs. interest onty for the fust hvelv¢ month4 with interest char8ed at rate +2.1•A. Th¢ loan is secured by a chwg¢ on th¢ freehold bousin8 woperty ￿ Nobles Ke5t. D¢bt Ba8ed on the lenders ¢8rli¢st r¢paymtht date. b(￿l￿8S ue repayabk 8$ follow5: 3111212023 31111Q022 Within one year or lyn demand One year or MO￿ but les5 ¢wo year5 Two years or rn0￿ Iwt less thall five Five years or moY¢ 6,417 15.400 61.61x1 214,263 13.882 14.354 44,713 137,309 £297,680 £210258 9 C•pltsl gr*Trt> re¢¢lved The charity hus rE¢¢iv¢d &85istsDce in rtnovatiOD wojects from the Homes and Community Agency and Westtnorland #nd Furness Coun¢il by way of grants whi¢h would onty be tepayable if the charity were to Jell the properties or cettse actirL8 as a social housin8 tnLSt. As this ts a remrf¢ pos8ilyility no provision for these has been made in these a¢¢ounts. The 4mownts involved pr¢ 8$ follows: 31112n023 3111212022 Sl¢ddall Victoria and Aynam Chapel Nobles Rest Sand¢$ Hospitsl John Asion Watkins Roml¢i&h and War Memori41 Gardens 618.960 115,423 102,197 27,540 34,028 618,960 115,423 102,197 27,540 34,028 £898,148 £898,148 This does Dot in¢lud¢ th¢ Current grants rtteived slk)wn in Creditors.. thie within one yw. P*ge 20 KENDAL ALMSHOUSE CHARrrY N￿s TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2(123 10 Perm#*ent EMdowm¢Trt Fmids Fern￿￿ent Investment Emdowmetht Revaluat￿n FwDd Fund Total Balance at l Janw 2023 Unreali5ed surplus 13.714 42.100 4.030 55.814 4,030 Balan¢e 41 31 December 2023 £13.714 £46.130 £59.844 I l De418tt*ted F•ndJ ExtrAordln*ry Cy¢lk*l Rep*trs M*lntenan¢e Fund Futtd Property Tot•1 Bal￿¢¢ al l January 2023 Trfs (loyfrom Accumulated In¢om¢ reserve Inv¢sthi¢n¢ in property Trnnsfer for Decent Homes Stsndard 1.884.334 151,499 (8.760) 61.270 15.586 2,097,103 6,826 (94,887) 15.000 (94.887) 7,500 7,500 Balance at 31 De¢¢mbeT 2023 £1.789.447 £150239 £84,356 £2,024.042 The Prom ￿nd wr¢s¢nts iniernal fvnds itiv¢ste41 tn propety. The other funds rep￿5¢￿1 funds set &gAd¢ for fikn WOTks on properry. 12 Property Rev*lu*tioD Rexrve Sotlal Hou$lh% RevAlu*tlon R¢Krve Tot41 Balanc¢ Ai l January 2023 Mov¢m¢nl in the year 714,290 714,290 Bal8n¢e at 31 tkcember 2023 £714290 £714,290 13 1Dveslmtttt R¢Y*lllatioD Raerve Ex¢r*ordlDary Cyelic81 Repalrs M*Inien*J￿¢ R¢v*luatwJ Revaluation Totsl Balance at l January 2023 Unrealiwd sury)lus 138.659 17.155 25,634 4.226 164,293 21,381 B4ian¢¢ at 31 December 2Q23 £155,814 £29,860 £185,674 P4e 21 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ￿ATEmENrS FOR THE YEAR ENDED 31 DECEMBER 2023 14 Aeturnuknted lffj¢omt Rfservt BalaThce at l January 2023 113.009 Prior year adjustment re prepa￿llents (9.000) Balance at l JJDu•ry 2023 as T￿l￿d 104,009 Sllryh￿ for tht year ended 31 D￿effjb¢r 2023 47,339 Transfer froml(to}'. Invesm)enl ID property. Joan mov¢mcnts Investmenl in propety- addition$ D¢si8nated extrAordinary ryTr fund under sw Desi8naled fvnds- cyclical main¢¢nats£e fund undu spend Designated funds- Decent Hom¢$ Sthttdard 94,887 8,760 (15.586) (15.000) 73,061 Balance at 31 December 2023 224.409 IS An•ty$h of net auets b¢twttD fum T•tt%lbk Flx¢d Auets IDVtJtseDts Credlton due after ole year Total Net CuTr¢n¢ Lknbbllty 31112r2023 P¢rnianenl endowm¢rtt funds Designated fimds Propety revalualion res¢rve Investment revaluatioti reserve A¢¢umulatcd income reserye 59,844 ,459 59,844 2.024,042 714,290 185.674 224,409 2.080.710 714290 144,136 (291263) 185.674 641,486 (417.077) £3,436,486 £335.977 (272.941) (291.263) £3.208,259 The net current liabiliry position 1$ covered by &•wdc•wns 4ttd promis¢d grants. T*ngilAe Invutmevjts ￿￿¢0 Crtdltors due afttr Tot*1 Net Currenl Comparntivu.. OD¢ yt¥r 31112r2022 Pennan¢nt ¢ndowment funds Des1￿￿al¢d fimds Property revaluation reserye Investment rvv&luation Teserv¢ Accurnulated income reserve 55.814 90,459 55.814 1097,103 714.290 164.293 104,009 1080.710 7142 122.310 (196.376) 164293 104,009 £2.795.(K)) £310.566 226,319 (196,376) £3,135,509 P•Ee 22 ST &B STABLES THOMPSON & BRISCOE lèi: {￿539> llod&S rlo 36 Slrnet It18 prn¢4thr¢ m ¢iM)pktK￿ ofiw*MIit Thrrfl to ThTAe ts knf(¥m of the rewhof0urw￿iÉ Th• fmdin8s ofthw •wlit th•t the thvity's rID￿l￿ tr4rAcdw be# Lxrtrdknj matttn eom¢ kn li4rt (knllig th¢ of ow Mrnial •udtt vthleh th de•lyd lo atslst iry¢8uIth •nd I￿lId rnliod &) A Tr￿. if •ny kryilwhy dld ¢ixn• to ¢)ur We h•V¢¢anpl1￿ with the Elhic•l Standa￿ fi¥Akn Ill to our IMlepththMhA￿b¢ the of th¢ •udii that wilh draw to >YAf •1knth4 4ThJ Irwt Thisr•FKYth• be•n prerAred fiYth¢ JDie ￿e ofthe In￿eN ofth¢ knd•l Alm$houtt ClJwityandvAth t¢wordg fifty prty wtin8 or r¢frni#iog frnm •• •rv•uh ofthis ryorL Finalty, ￿ wwkl lik¢ to exwem to au m¢mbws of the ¢lwilfv aaff I￿1#¢d w In ENDFI) 31 DECEMBER 2023 AND AE(L)MMBNDATIONS Tr I&¥t￿l*l C￿ 3110512011 thi• vthi Ort of12 lylnk rrigwj by •