2024-12-31-accounts - Kendal Almshouse Charity

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KENDAL ALMSHOUSE CHARITY Registered Charity Iyumber 1172208 Homes England 5097 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Stables Thompson & Briscoe Chartered Aeeountants Statutory Auditors

KENDAL ALMSHOUSE CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS Clwity Inf0MtIOn TTUStees' Report Statement of Trustees, Responsibilities ]ndependent Auditor5, Report 8-10 Statement of Comprehensive Income Statement of Changes in Reserves 12 Statement of Financial Position 13 Noles to the Financial Statements 14-22

KENDAL ALMSHOUSE CHARITY CHARITY INFORMATIors Established as CIO 22 March 2017 Principal Office Suite I, CumbrAa Tourism Busines5 Centre Windennere Road Staveley LA8 9PL Registered Numbers Registered Charity Number 1172208 Homes and Communities Agency Registration NumbeT A1059 Trustees Mr P G Ducksbury ( Chair) M5 C Roberson {Vi¢e Chair) Miss S J Barron (appointed 17 July 2023) Mrs H Fitch Ms L Gray Mrs J Hale Miss D Lund Mr J Stirling Managing agent H & H Land & Eslates Suite I, Cumbria Tourism Business Centre Windem)ere Road Staveley LA8 9PL Tel: 01539 721375 Bankers Barclays Bank PIC 9 Highgate Kendal Cumbria LA9 4DF Independent Auditors Stables Thompson & Briscoe Chartered Accountants Statulory Auditors Lowther House Lowther Street Kendal LA9 4DX Page I

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their report and the audited fjnancial ststements for the year ended 31 December 2024. Governance, Aims, Strueture and Management Govcrnin Document The Kendal AImshouse Charity was originally five charitable organisations registered with the Charity Commission. In 1987, the charilies were amalgamated to create the Kendal Almshouse Charity under a Memorandum of Association which established the object5 and powers of the charitable organisation, dated 2 December 1987. In 2014 the assets and liabilities of Kendal War Memorial Trnst were acquired by Kendal Almshouse Charity. tn March 2017, the Charity Commission approved the conversion to a Charitable Incolporated Organisation (CIO). AII the assets and operations were transferred into the CIO from June 2017. The Charity Number of the CIO is 1172208. Recruitment and A intrnent of Trustees There are eight Trustees at the date of this repor¢ with one new trustee recruited during the last y¢aT. Mr P G Ducksbury remains Chair. Ms C Roberson remains as Vice Chair. Mrs J Hale is currently Chair of the Finance Con)mittee, Mrs H Fitch is Chair of the Lettings Committee and Miss D Lund is Chair of the Building Committee. Ten Trustees would be the ideal structure. Trustees are encouraged to "netwoftk" to fmd suitable new Trustees and the Charity advertises positions available. The ski115 of the TTUStee5 are regularly reviewed. and they are all encouraged to take a lead in an aspect of the Charity business. Each Trustee is appointed to at least one of the three committees. Finance, Buildings or Lettings. It Is the policy of the Charity to appoint Trustees with experience in the letting of residential property, care of the elderly and those in need, building construction, fmance, investtnent and legal matters. Trustee Induction and Trainin Prior to appointment of new Trustees, the candidates are provided with an induction pack which includes the Governing Instrument and minutes of recent quarterly meetings of the committees and the full Trustees. The Chair and Clerk meet candidates to discuss the background, history and policy of the Charity, together Wlth the future plans and objectives of the organisation, before their appoinlment. Each potential Trustee attends a quarterly Trustee meeting, as an observer, before being appointed. Charity Commission publications are also made available, together with publications from the National Association of Almshouses of which Kendal Almshouse Charity is a member. The standard of Almshouse Management publication is mad¢ availabl¢ for candidates. New Trustees are issued with a Trnstee Handbook which details how the Charity is run and what is expected of them. The implicattons of being a Registered Social Housing Provider are also explained to new Trustees. Page 2

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 nisational stCtUre The Finance Conthiittee meets at least every quarteT, before each quarterly Trustee meeting. The Letting Committee and Building Committee meet regularly. Recently appointed Trustees are app<)inted to a specific Committee which is relevant to their experience. All committees comprise a rninimum of three Trustees and operate under temis of reference. The Letting Committee meets to decide to appoint applicants seeking a home, based on the aims and objectives of the Charity and the circumstances of the individual applicants, It also liaises with the Building Committee as regards upgrading of vacant units. The funetion of the Building Conunittee is to advise the Trustees on major improvements, refurbishment 5cheme5 and the conclusions of the quinquennial survey reports. Quinquennial reports are obtained on the general condition of the housing stock with recommendations on improvements and urgent repairs needed. These reports are undertaken by a professional Building Surveyor, Quinquennial inspections were last undertaken in 2020 and we are in the process of obtaining tenders for quinquennial surveys on all the property stock in 2025. There are no significant building repairs required but there is an ongoing progranune of replacing boilers, internal upgrades and external decoration. The Building Committee has been concentrating on the redevelopment of the "Romleigh" site which has been vacant since 2019. The demolition of the original bungalow and construction of two semi- detached one bedroom dwellings, known as l & 2 Romleigh, was completed in November 2024. No.2 Romleigh has been occupied since January 2025 and No. l Romleigh has been occupied since March 2025, each paying a weekly maintenance contribution of £150 per week. The flnal contract sum was £570,000. There is a 12-month retention of £14,250 which will be due in November 2025. The total project costs were c.£682,000. The Charity secured total wit funding of £248,000. £208,000 from Homes England and £40.000 fro Westmorland & Furness Council (WFC) which has been paid in 11. Homes England has audited Kendal A]mshouse Charity and reported that everything is salisfactory and there are no breache5. The Charity obtained a loan from Charity Bank in the sum of £480,000, part of whi¢h wa5 Used to settle the outstanding Barclays loan taken out for the rerb]shMent of the Sleddal Victoria Almshouses after the devastation caused by flooding in 2015, resulting in net born)wings of c.£270,000 towards the Romleigh project. The loan was secured against the properties at Nobles Rest. The full loan was drawn down at the end of June 2024. The loan outstanding at 31 December 2024 was £477,422.43. The remaining c(yst of the Romleigh project were met from the Charity's reseryes, further details of which are provided below. The charity follows the rules and regulations of Homes England. Risk Mana ement The Finance Committee monitors the suitability and adequacy of the investments, taking into account the operational and other requirements of the Charity. It nonnally meets immediately prior to the full tru5tee5 meeting, providing accurate and timely reporting. The investments are rnonitored by the Finance Committee. The Accountants are Registered Auditors, and the Clerk is a member of the Royal Institute of Chartered Surveyors, H & H Land & Est&tes. Page 3

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Risk Mana emenl continued Together with the exisling management structure and administrative arrangements in place, regular rnonitoring of the agreed risk management policy and applicable indemnity insurance affangements, the Trustees are satisfied that appropriate risk management practices are in place to meet the needs of the Charity and protect its activities. To address the potential risk associated with the impending retirement of the ClerL the Trustees have agreed and signed a Service level Agreement with the Clerk's pri)fessional oifices, Chartered Surveyors. The Clerk's OffJ¢e has instigated the gradual transfer and delegation of the Clerk's duties to colleagues. including the Accounts and Administration Departh)ent. The Service Level Agreement was renewed from 1st January 2024 for a three year period. The Trust regularly reviews its policies by looking al two to three at each quarterly meeting. During 2024, up to the present date. almost all the policies and the risk assessment have been reviewed and updated. The main risk to the Charity during the last year has been the Romleigh project, however, that is now completed. The project overran by about six months and cost approximately £40,000 more than originally anticipated but the additional expenditure could still comfortably be met from the reserves. Jncreases in interest rates are a risk and now that the fmal project Costs are known. the Finance Committee will consider the merits of using som¢ of the reserves to reduce Ihe loan balance at the May 2025 meeting. Going forward, th¢ main risks are repairs and maintenance required to properties. upgrades required to comply with legislation (particularly with regard to Minimum Efter Efficiency Standards) and breaches by o¢rupi¢r5. However. given the current governance and organisation stru¢ture, these risks are not considered significant. Confli¢ts of Interest At the start of each meeting of Trustees. including Committee meetings, attendees are asked to declare any conflicts of inlerest. During the period all Trustees siglled a declardtion that they are not connected to any of the regular suppliers and Contractors engaged by the Charity. Objeetives and Activities Public Benefit The Charity's principal objective is to provide a wide range of affordable unrnIShed homes for those in need and who reside in the town of Kendal. Cumbri4 and adjoining parishes, as defined in the Charity's Governing Instrument. Depending on the level of interest from these areas, it is pemiissible to extend the defined region into the areas fornially within the District of South Lakeland and the Borough of BaTrow-in-Furness (now within Westrnorland & Furness Council). The Trustees confmn that they have reviewed ihe Charity Commission's guidance on the provision of public benefit and consider that th¢ public benefit requirement is duly satisfied by the activities carried out in achieving the CharÉty's objectives. Vacancies for almshouses are advertised in a local weekly newspaper and on the Charity's website. Applicants are required to complete a detailed application forni. All applications are foTmally considered by the Letting Committee, which will inlerview applicants as necessary. No restrictions are placed on applications by virtue of gend¢r or for 50¢ial, religious or ethnic reasons. Page 4

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EIYDED 3I DECEMBER 2024 Public Benefit Under the provisions of the Governing Instrument, preference is given to persons aged 50 years or mor¢. Westmorland and Fumess Council works closely with the Charity to help identify those in need in the area. The Charity also liaises with Social Servi¢¢s lo adapt properties for the benefit of occupiers. At the date of this report, all housing stock is occupied. there are no vacancies and no SIlfiCant arrears. Athievements alld Performance i Rents The weekly maintenance contribution5 are maiJ)tained within the guidelines of the Homes and Communities Agency. All the housing sto¢k are now at target rents. The weekly maintenance contributions wer¢ reviewed and increased in line with the Homes England guidelines, with effect from January 2024. ovements and Maintenance Regular inspections covering the general condition of the Charity's properties are undertaken by the Clerk's office, and where necessary a qualified building surveyor, to highlight improvements and other work needed io maintsin the buildings in a good state of long-terni repair. Additionally, the opportunity is nornjally taken, when a propety becomes vacanL to in)prove the facilities as necessary. Supporting initiatives involve upgrading the quality of the Charity's housing stock to achieve Decent Homes Standards, a requirement of the Homes England as Kendal Almshouse Charity is a Registered Social Housing Provider (RSHP). The last quinquennlal building surveys were undertaken in 2020 and focused on the nine a]mshouses at Sandes Hospital and two at Romney Road. All items highlighted to be addressed in the medium temi have been addressed. The other a]mshouses were surveyed prior to 2020 but the Sleddal Victoria A]mshouses were substantially refurbished and restored after the 2015 floods, to cornply with Decent Home Standard Status, and Nobles Rest has undergone improvements, such as new windows and doors. Romleigh was demolished in 2023 and replaced with nvo new energy-efficient one-bedroom ahnshouses, completed November 2024. External decoration of the rear elevations of the Sleddal Victoria almshouses was completed in 2024. As properties have become vacanL they have undergone minor in]provements and rerbIshment. The Charity adheres to regulatory requirements in respect of amiual gas safety certificates and five yearjy Electrical Installation C¢rtificats Reports (EICRS). It takes a pro-active approach to replacing boilers which are nearing the end of their life. 11 has been identified through property inspections that Nos. 30A & 30B Aynam Road may require re-poinling in 2025 and quotations aTe being sought for this. There are no oth¢r significant capital works or improvements proposed for 2025. Finaneial Review An annual budget was considered and agreed by the Trustees at the 2024 and 2025 meetings, based on the recommendations frorn the National Association of Almshouses for annual amounts foT each of the three designaled funds, being routine maintenance, extraordlnary repairs and cyclical maintenance. Page 5

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Financial Review (continued) The outcome of the charity's operations for the year ended 31 st December 2024 shows an operating surplus in the Statement of Comprehensive JnGorne of £344,979 which includes grants of £248,000. If grants are excluded this would be £96,979 up £37,910 on 2023. Total comprehensive income was £673,488 for the year which was higher than the totsl of £72,750 for 2023 primarily due to the revaluation of the housing properties. The costs relating to Romleigh have been capitalised. Reserves Polic At 31 December 2024 the Charity had a surplus on accumulated income of £1 00,103 before the long lemi mortgage of £468,269. The Trustees have adopted a Teserves policy to build a free reserve equivalent to one year's income from weekly maintenance contribulions (currently £235,000). The reserve set aside provides fmancial stability and the means to the development of the principle actlvlty. Our reserve level is set with the knowledge that sigtiificant void levels may occur due to the age and type of properties. Trustees are aware that some properties lie within the Kendal Flood Zone and have experience of significant prolonged voids as a Consequence of floodin& although flood prevention measures are currently under constrnction. The Trustees meet regularly, quarterly, to review the amount of reserves that are required to ensure that they are adequate to fulfil the continuing obligations. It was proposed to use £ 100,000 of the accumulated in¢ome for the Romleigh project in 2024, with another £lOO,000 required for Romleigh coming from the Emergency Repair Fund inveslJn¢nts if required. To date £13,061 of accumulated income has been used. However, Trustees will consider whether to use further reserve5 to reduce the balance of the loan at th¢ next Trustees meeting in May 2025. The total investments at 31 December 2024 are £353,905. Investment Polic The Charity's objective for the investment of funds not required for short-terni medium-tern] operational reasons is to apply such funds so as to achieve a balance between income generation and capital growth over the longer terni, consistent with the degree of risk considered acceptable by the Trustees. Accordingly, the funds are invesled in COIF and NAACIF which are considered to provide an adequate spread of risk and an acceptsble rettjrn and are monitored regularly by the Finance Committee. Value for money Kendal Almshouse Charity assesses how il is achieving value for money in delivering its purpose and objectives. in accordance with the regulator's standard on value for money. This means managing resources economically, efficiently and effectively to provide quality services and homes. The Trustees review target rents, investh]ent perfomance, expenses and the charity's resources while seeking to achieve decent homes standard and maintain the level of service expected by tenants. Page 6

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EF4DED 31 DECEMBER 2024 Value for money metrics Kendal Abnshouse Charity is a small PTovid¢r for the purposes of disclosure of the Value for Money Metrics. Disclosures are as follows: 2024 2023 2022 2021 2020 Rcinvesttnent 0/0 New supply delivered GearAng EBITDA MRI Interest coveT Headline Social Housing Cost per unit Operating margin Return on Capital Etnployed 0/0 oo/. o/ 17/0 3080/0 5800/0 £3,370 1470/0 £3,837 260/0 £4,535 23% £5,033 £2,255 260/0 The Value for Money Metrics are variable as this is a small RSL and any project will affect the ratios more than larger RSLS. Statement of compliance Kendal A]mshouse Charity as a registered provider of social housing assesses compliance with the Governance and Financial Viability Siandard code of Practice issued by the Homes and Communities Agency in April 2015 on an annual basis. The Charity has in place procedures and policies to comply with the code of practice and the trustees review these regularly. Approved by the Trustees on 12 May 2025 and signed on their behalf by: P C Ducltsbury Chair Page 7

KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 STA TEMENT OF TRUSTEES, RESPOIYSIBILITIES The Charities Acts and registered social housing legislation require the Trustees to prepare fmancial atements for each fjnancial year which give a twe and fair view of the state of affairs of the Charity and of the surplus or deficit for that period. In preparing the fmancial statements the Irustees are required to: sele¢t suitable accounting policies and apply them consistently; make judgements and estimates that are reasonable and prndent. state whether applicable accounting standards have been f4)Ilowed, subject to any material departures disclosed and explained in the fmancial statements. and prepare the f]nancial ststemenls on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the Chariiy and enable them to ensure that the fanCial statements comply with the Charities Act 2011. the Housing and Regenerdtion Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. The Trustees are responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on 12 May 2025 and signed OD their behalf by: P G Du¢ksbury Chair Page 8

Independent Auditor's report to the Trustees of Kendal Almshouse Charity Opinion We have audited the financial statements of Kendal Almshouse Charity for the year ended 31 December 2024, which comprise the Statemenl of Comprehensive Income, the Statement of Changes in R¢serves, the Statement of Financial Position and notes to the fjnancial statements, including SIlfiCant accounting policies. The fancIal reporting framework thai has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a Iruc alld fair view of the state of the association's affairs as at 31 December 2024, and of its incoming resources and application of resources. including its income and expenditure. for the year then ended. - have been properly prepared in accordance with United Killgdom Generally Accepted Accounting Practice: and - have been prepared in accordance with the requirements of the ChitIeS Act 2011, the Housing and Regeneration Act 2008 ayjd the Accounting Direction for private registered providers of social housing in England 2019. 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 fmancial statements section of our report. We are independent of the associalion in accordance with the ethical requirements that are relevant to our audit of the f]nan¢ial statements in the UK, including the FRC'5 Ethical Slandard, and we have lfilled our other ethical responsibilities in accordance with these requiremenls. 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 fmancial statements, we have concluded thai the board's use of the going concern basis of accounting in the preparation of the fmancial statements is appropriate, Based on the work we have perforn)ed, we have not identified any material uncertainties relating to events 01 conditions that, indtvidually or collectively, may cast significant doubt on the association's ability to continue as a going concern for a period 4)f at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the board with respect to going concern are described in the relevant sections of this Teport. Olher illform2tion The other inforn]ation comprises the information included in the Thistees, Report , other than the fmancial statements and our auditor's report thereon. The board are responsible for the other inforniation contained within the Trustees, Report. Our opinion on the financial statements does not cover the other inforniation an(L except to the extent otherwise explicitly stated in our reporL we do Dot express any forn) of &ssurance conclusion thereon. Our responsibility 15 to read the other infonnation and, in dolng so, consider whether the other inforniation is matsria]ly inconsistent with the financial statements or our knowledge obtained in the course of the audi¢ or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatemenls, we are required to deternline whether this gives rise to a material misstatement in the fmancial statements themselves. If, based on the work we have perfonne(L we conclude that there is a nmterial misstatement of this other inforniation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exeeption We have nolhing to report in respect of the following matters in relation to which the Charities (Accoun15 and Reports) Regulations 2008 require us to report to you if, in our opinion: the infomialion given in the financial statements is inconsistent in any material respect with the board report: or - sufficient accounting records have not been kept. or Page 9

Independent Auditor's report to the Trustees of Kendal Almshouse Charity (continued) Matters on Jvhich we are required to report by exception eontAnued - the financial statements are not in agreement with the accounting records. or we have not received all the inforniation and explanations we require for our audit. In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion: - a satisfactory system of control over transactlons has not been maintsined. Responsibilities of the board As explained more fully in the board's responsibilities slatement set out on page 7, the board members (who are also the trustees of the association for the puryoses of charity law) are responsible for the preparation of the fu1claI statements and for being satisfied that they give a true and fair view, and for such internal control as the board delernline is necessary to enable the preparation of fjnancial statements that are free from material misstatement, whether due to fraud or error. tn preparing the fmancial statements, the board is responsilyle for assessing the association's ability io continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to Cease operations, or has no realisti¢ alternative but to do so. Auditor's responslbfilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the fmancial statements as a whole are free from material misststement, whether due to fraud or eOr, 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 ettor 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 fmancial statements. Irregularities, including fraud, are instsn¢es of non-compliance with laws and regulations. We design procedures in line with our respon5ibilÈtie5, Outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which tbese are Capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that Could reasonably be expected to have a material effect on the flliancial ststemenls from our experience and from discussions with management. We reviewed any related correspondence and records of trustee meetings to assess compliance with laws and regulations and discussed the cuent position with management. We ensured the audit team were alert for any indications of non-compliance throughout the audit work. The charitable company is managed by 8 management company which reduces the risk of fraud. We assessed the management company's poltcies and procedures on fraud risks. No instances of actual, suspected or alleged fraud were identified by us or the managing company in the year. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the fU¢La1 statements, even though we have properly planned and perfornied our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the fmancial statements, the less likely ihe inherently limited pn)cedures required by auditing standards would identify it. tn addition, as with any audit, there remained a higher risk of nonxqetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of controls. We are not responsible for preventing non•compliance and cannot be expected io detect compliance with all laws and regulations. A rther description of our responsibilities is available on the Financial Reporting Council's website at: https'.Ilwww.frc.org.uklOur-WorklAuditlAudit-and-assurance/Standards-and-guidancelStandards-and-guidance-for- auditorslAuditors-responsibilities-for-audiLIDescription-of-auditors-responsibilities-for-audit.aspx. This description fornis part of our auditor's report. Page 10

Independent Auditor's report to the Trustees of Kendal Almshouse Charity (continued) Use of this report This report is made solely to the association's boarf as a body> in accordance with Part 4 of the Charities (Accounts and Report5) Regulations 2008 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the association's board those matters we are required to state to them in an auditor's report and for no other PUTPOSe. To the fullest extent perniitted by law. we do not accept or assume T¢Sponsibility to anyon¢ oth¢r than the association and the association's board as a body, for our audil work, for this report, or for the opinions we have fonned. Stables Thompson & Briscoe Statutory Auditor Lowther House Lowther Street Kendal Cumbria LA9 4DX Date: If ao2; Slubles Thompson & Briscoe is eligible lo acl as an auditor in terms ofsection 1212 ofthe Compaities Act 2006. Pagell

KENDAL ALMSHOUSE CHARITY STATEMENT OF COMPREHENSIVE INCOME (INCLUDING INCOME AND EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2024 Year ended 3111212024 Year ended 3111212023 Notes Turnover Maintenance contributions from residents Less: losses from voids 241,443 (6,397) 221,910 (5,651) 235,046 216,259 Operating Costs Services Routine maintenance Cyclical maintenance Extraordinary repairs Management 35,988 26,389 21,810 12,421 41,572 32,741 29,050 25.578 33,934 36,000 (138,180) (157,303) Other illcome Donations and wayleave Grant received for Romleigb development 113 248,000 248,113 113 Operating Surplusl(Deficit) 344,979 59,069 ]ncome from fixed asset investments Interest receivable and similar income Interest and financing costs Movement in fair value of investments Downward revaluation of housing properties 3,698 2,904 (32,381) 17,928 (526,640) 3,570 2,326 (17,626) 25.411 Surplu51(Defi¢it) on Ordin2ry Aetivilies Before Taxation {R89,512) 72,750 Taxation on surplus on ordinary activities l (o) Surplus l (deficit) for the year (189,512) 72,750 Revaluation of tangible fixed assets 863,000 Total comprehensive incom¢ for the year 673,488 72,750 These fmancial statement5 were approved by the Trustees on 12 May 2025 and signed on their behalf by: P G Ducksbu Trustee Mrs J Hale Trustee The annexed notes foTm part of these fmancial statements. Page 12

KENDAL ALMSHOUSE CHAIUTY STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2024 Property Investment Reslrleted EndowmeDt DesigDat¢d Revaluation Revaluation Attumulaied reserves reserves reserves reserve restrve ineome Total At 31 December 2022 and l January 2023 55,814 2,097,103 714.290 164,293 104,009 3,135,509 Surplus (deficit) for the year Transfers between reserves Investment in property 4,030 21,381 47,339 73,061 72,750 (73.061) Total cornpreheDsive iD¢ome 4.030 (73.061) 21.381 120,400 72,750 At 31 December 2023 and l January 2024 59.844 1024,042 714,290 185,674 224.409 3,208,259 Surplus (deficit) for the year Transfers between reserves Revaluation 1,515 16.413 (207,440) (189,512) 83,134 (83,134) 863,000 863,000 Total compr¢hen5ive income 1,515 {83.134) 863,000 16,413 {124,306) 673,488 At 31 Deeember 2024 61.359 1,940,908 1,577.290 202,087 100.103 3.881,747 The annexed notes forni part Df these financial statements. Page 13

KENDAL ALMSHOUSE CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 Notes 3111212024 3111212023 Fixed Asset5 Tangible fixed assets Asset in the course of consttvction tnvesttllents 3,818,000 2,795,000 641,486 335,977 353,905 4,171,905 3,772,463 Current Assets Debtors Bank Current account Bank Deposit accounts 9,841 72,969 156,917 10,472 32,794 210,320 239,727 253,586 Creditor5 Amounts falling due within one year (61.616) (526.527) Iyet Current Assets 178,111 (272,941) Total assets less eurrent liabilities 4,350,016 3.499.522 Creditors Amounts falling due after one year (468.269) (291.263) Total Net Assets 15 £3,881,747 £3,208,259 The FuDds of the Charity Pennanent endowment funds Designated funds Property revaluation reserve Investment revaluation reserve Accumulated income TeseTve 10 61,359 1,940,908 1,577,290 202,087 100,103 59,844 2,024,042 714,290 185,674 224,409 12 13 14 £3,881,747 £3,208259 These financial statements were approved by the Trustees on 12 May 2025 and n their b¢balf by: P C Dueksbury Trust¢¢ Mrs J Hale Trust¢¢ The annexed notes forni part of these fmancial statements. Page 14

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Principal Accounting Policie5 a) Legal status Kendal AEmshouse Charity is an Charitable Incorporated Organisation (CIO) r¢gistered with the Charity Commission on 22 March 2017 (number 1172208) and is a private registered provider of social housing in the United Kingdom. The Charity constitutes a public benefit entity as defmed by FRS 102. b) Basis of accounting The fmancial slatements have been prepared in accordance with applicable accounting standards including Financial Reporting Stsndard 102 "The Financial Reportlng Standard Applicable in the UK and Republic of Jreland" (FRS 102), the Statement of Recomn)eDded Practice for Social Housing Providers 2018, and with the Accounting Direction for Private registered providers of social housing in England 2022. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Charities Act 2011. The fancial statements have been prepared on a going Concern basis under the historical cost convention, modified to include certain items at fair value. The fmancial slatements are prepared in sterlin& which is the functional currency of th¢ Registered Provider, and round¢d to the nearest The significant accounting policies applied in the preparation of these ffftancial staten]ents are set out below. These policies bave been consistently applied to all years presented unless otherwise stated. As a small entity, the Charity is not required to produce a Cash Flow Stat¢ment. ¢) Golng concern The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going ¢on¢ern. d) Tangible fixed assets Tangible red assets (including social housing properties) are stated at cost or valuation less accumulated depreciation and accumulated impairnient losses as appropriate. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, development costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be ¢apitalised 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. The Charitys tangible f]xed assets are made up of housing properties which are principally almshouses some of which were acquired in 1887 and have previously been recorded in the accounts at cost, which was well below the existing use value as social housing {EUV - SH) or open market value. When the properties were transferred to the CIO the opportunity was taken to value the properties and the EUV-SH value has been brought into these accounts (see note 4). Depreciation is provided on all tangible fixed assels, al rates calculated to write off the ¢osL less estimated residual value. In the case of the housing properties held at valuation, depreciation is considered to be inunalerial due to the high residual value and so is not provided. Freehold land 15 not depreciated. Housing properties under conslruction are not depreciated until they are in use and the useful economic lives of all tangible fixed &8sets are Teviewed annually. Page 15

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 I Principal Accounting Polieies (continued) d) Tanglble fjxed assels (continued) As the housing properties are now shown at existing use valuation for social housing, and the open market value of these properties is roughly twice the EUV-SH value, the residual value of the properties is considered to be higber than the Carrying value and as such depreciation is not provided. The valuations will be reviewed on a regular basis. e) Debtors and creditors reteivable I payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairnient aTe recogni$ed in the statement of comprehensive income in other administrative expenses. Rights of social landlords to have improvement works Caied out to properties by a third party (5ucb as a Local authority) are recognised as prepayments where payment has oCcued in advance of the works being Caled out and receipts in advance from the same third paty recognised as liabilities. Assets and liabilities or income and expenditure are not offseL Investmenls Investments are recognis¢d initially at cost. Subsequently, they are measured at fair value through the statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliabty. Other investments are measured at cost less impairnient. g) Loans and borrowings Loans and boWingS are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impainnent, If an aangement constitutes a fmancing transaction it is measured at present value. h) Soeial Housing Grants (SHG) and Other Grants SHG received as a grant towards revenue expeDditt]re is matched against that expenditure by being included in ttwnover in the income and expenditure account. The related expenditure is included under operating costs. SHG is Tecognised in the same period as the related expenditure provided the conditions for its receipt have been satisfied and there is reasonable assurance that the grant will be received. Capital grants are shown in liabilities until the project 15 completed and then released to turnover. i) Provisions Provisions are recognised when the Charity bas an obligation at the balance sheei date as a result of a past event. it is probable that an oufflow of economic benetits will be required in settlement and the amount can be reliably estimated. Provisions for cyclical maintenance or major works to existing stock are not made unless ihey represent commitments or obligations at the Balanc¢ Sheet date where there is no discretion to avoid or delay the exp¢nditure. Re(ycled Capilul Granls Fund Capital grants can be recycled under certain condition, if a property is sold, or if another relevant event takes place. Recycled grants can be used for projects approved by the Homes and Communities Agency (HCA) and ihey are credited to the Recycled Capital Grant Fund within liabilities. Page 16

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 DECEMBER 2024 Principal Accounting Polieies (conlinued) ?) ProV10n5 (continued) In certain cirCunlanCes, such as the sale of housing properties, capital grant5 may be repayable, and, in that evenl is subordinated to the repayment of other loans by agreement with the Homes and Communities Agency (HCA). It is accounted for as soon as the liability arises wiihin Creditors: Amounts falling due within one year. When any grant to be recycled or repaid is less than the grant relating to the disposal, the difference is treated as abated grant. Abated capital grants are treated as a component of the surplus or defictt on disposal. j) Turnover and other income Turnover is measured at the fair value of the consideration received or receivable including VA T and net of trade discounts. The policies adopted for the recognition of turnover are as follows: Turnover represents rental and service charges income receivable in the year net of rent and service chtwge losses from voids. revenue grants from the government (local authorities) and the Hom¢s and Communities Agency. Property Managed by Agents Where the Charity carries the financial risk on propety managed by agents, all the income and expenditure arising from the property is included in the Statement of Comprehensive Income. Where the agency carries the fmancial risk, the Statement of Comprehensive Income includes only that income and expenditure which relates solely to the Charity. Ip7leras1 and dividends peceivable tnterest income is recognised using the effective interest method and dividend income is recognised as the Charity's right to receive payment is established. k) Routine Repairs and Maintenance The costs of routine repairs and maintenance are charged to the Income and Expenditure Account in the year in which they are incurred. l) Extraordinary Repairs Costs of extraordinary repairs, unless representing capital improvements to the properties, are charged to th¢ Income and Expenditure Account in the year in which they are incurred. m) Value Added Tax Kendal Almshouse Charity is not registered for VAT. In th¢5¢ fmancial statemeDls, where applicable, expenditure Is shown inclusive of VAT. n) Current Taxation No taxation is payable by Kendal Almshouse Charity since it has charitable status and its charitable activities are exempt from tax. Page 17

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Principal Accounting Policie5 (eontinued) o) Designated and Restrieted Funds General funds are unrestricted funds which are available for use at the discretion of the Twstees in furtherance of the general objectives of the Charity and which have not been desiated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees foi particular purposes. The aim and use of each designated fund is set out in the notes to the fmancial statements. Restricted ndS are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of rdising and administering such funds are charged against the specific fund. The aim and use of each fund is set out in the notes to the fmancial statements. Endowment funds represent those assets which must be held pernianently by the Charity, principally investhients. Income arising on the endowment funds can be used in accordance with th¢ object5 of the Charity and is included as unrestrictsd income. Any capital gains or losses arising on the investments forni part of the fund. Invesknent managemenl charges and legal fees relating to the fund are charged against the fund. Investment income and gains are allocated lo the appropriate fund. There are three designat¢d ndS in these accounts.. Property Fund Thi5 represents that proportion of the cost of properties which was fmanced by charitable donations and the Charity's own resources. Cyclical Maintenance Fund This Fund Tepre5ents amounts set aside for cyclical maintenance to meet costs in exces5 of budgeted expenditure for any year. Extraordinary Repairs Fund This Fund represents amounts set aside to carry Out unexpected repairs and capital improvements on housing properties. Board alld key management personnel ren)uneration Key management are defmed as the Trustees. None of the TN5tee5 received any emoluments or had reimbursed expenses except for J Stirling who was reimbursed £6.30 travel expenses. The Tnlstees have a service agreement with H&H Land & Estates who manage the properties on a day to day basis. The management fees payable were as follows.. 3111212024 3J11212023 Management fees £41,572 £40,200 Page 18

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Surplus on Ordinary Activities 3111212024 3J11212023 Surplus on ordinary activities Is Stated after charging: Auditors, retnuneration in their capacity as Auditors Surplusl{deficit) on fair value movement of inveslrnents £6,350 £17,928 £6,350 Auditors, remuneration includes £3,654 for preparing the arxounts. 4 Fixed Assets: Freehold Housing Property Sledall Victoria and Ajnam Chapel Nobles Rest Sandes Hospital John Aston Watkins RDmleigh and War Memorial Gardens Totsl Valuation I January 2024 1,370,000 715.000 450,000 180.000 80,000 2.795,000 Transfer 686,640 686,640 (Impairnlent) (526.fv10) (526,640) Revaluation 475,000 298,000 20,000 70,000 863,000 Valuation as at 3111212024 £1,845,000 £1,013,000 £470,000 £250,000 £240,000 £3,818,000 The properties were independently valued as at 31 December 2024 by Edwin Thompson on 17 April 2025. The valuations reflect the almshouse and residency restrictions which equates to existing use value - social housing as required by the Housing SORP 2018. The discount on open rnarket value was between 350/0- 50L/¥o depending on the propety. The properties were all held for letting and represented 42 general housing units. General works to properties amounted to £60.620 (2023 - £88,562). The original cost of the properties is a mix of the valuation at the time of transfer to the charity and subsequent developmenl work and amounts to £3,582,047 (2023 - £2.895,407) less Social Housing grants of £449,120. During the year, the redevelopment of the Romleigh site was completed and was tranSfed into Freehold Housing Property from Asset in the Course of construction in November 2024. This property was independently re-valued at 31 December 2024 using the same valuation methodology (existing use value minus social housing) and as such the valuation has been capped at £240,000. An impairn]ent of £526,640 has been recognised a5 the difference between historic cost including redevelopment and the value as at 31 December 2024. Page 19

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ST ATEMEIYTS FOR THE YEAR ENDED 31 DECEMBER 2024 Asset in the course of constructlOD Romleigh Total Historical Cost at l January 2024 Additions 641,486 641,486 45,154 45,154 Transfer to Freehold Housing Property (686,640) Cost at 31 December 2024 £686,640 Grants of £208,000 were received from Homes England towards this development and a further £40,000 was received from We51morland and Furlless Council. Investments Extraordinary Permanent Cyclical Repairs Endowment Maintenance Fund Fund Fund Total Historical cost at l January 2024 46,102 13,714 44,357 104,173 Historical cost at 31 December 2024 £46,102 £13,714 £44.357 £104.173 Market value at l January 2024 Unrealised SUTplusl(deficit) 201.916 13,153 59.844 1,515 74,217 3,260 335,977 17,928 Market value at 31 December 2024 £215,069 £61,359 £77,477 £353,905 All the investments ar¢ plac¢d with COIF and M&G. Debtors." Amounts Falling Due Within One Year 3111212024 3111212023 Weekly maintenance contributions Other debtors Prepayments 1,477 1,553 1,284 7,635 8,364 £9,841 £10.472 Creditors: Amounts Falling Due Within One Year 3111212024 3111212023 Trade creditors Bank loan due within one year Grant received for asset in the course of construction Asset in the course of construction contracted expenses Accruals and deferred income 45,863 9,153 68,243 6,417 156,000 289,267 6,600 6,600 £61,616 £526.527 Page 20

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Creditor5: Amounts Falling Due After ORe Year 3111212024 3111212023 Bank loan due after one year 468,269 291,263 £468,269 £291,263 The loan is Tepayable over 25 years, interest only for the fjrst twelve months, with interest charged at base rate +2.1¢/+o. The loan is secured by a legal charge on the freehold housing property at Nobles Rest. Debt analysis Based on the lenders earliest repa)qnent date, borrowings are repayable as follows- 3111212024 3111212023 Within one year or on demand One year or more but less than two years Two year5 or more but less than five years Five years or more 9,153 9,240 27,720 431,309 6,417 15,400 61,600 214,263 £477,422 £297,680 Capital grants received The charity has received assistance in renovation projects from the Homes and Conimullity Agency and Westmorland and Furness Council by way of grants which would only be repayable ifthe charity were to sell the properties or cease acting as a social housing trust. As this is a remote possibility no provision for these has b¢¢n mad¢ in th¢se accounts. The amounts involved are as follows.. 3111212024 3111212023 Sleddall Victoria and Aynam Chapel Nobles Rest Sandes Hospital John Aston Watkins Romleigh and War Memorial Gardens 618,960 115,423 102,197 27.540 282,028 618,960 115.423 102.197 27,540 34,028 £1,146,148 £898,148 This does not include grants received shown in Creditors: due within one year. Page 21

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 10 Permanent Endowment Funds Permanent Investment Endowment Revaluation Fund Fund Total Balance at l January 2024 Unrealised surplus 13.714 46,130 1.515 59,844 1,515 Balance at 31 December 2024 £13.714 £47,645 £61,359 11 Designaled Funds Extraordinary RepaRrs Fund Cyclical Mainlenance Fund Property Fund Total Balance at l January 2024 Trfs (lo)/from Accumulated Income reserve Investment in propety Transfer for Decent Homes Standard 1,789,447 150,239 14,417 84,356 22,038 2,024,042 36,455 (134,589} 15,000 (134,589) 7,500 7,500 Balance at 31 December 2024 £1.654.858 £172,156 £113,894 £1,940,908 The Property fund represents internal funds invested in property. The other funds represent funds set aside for fvture works on property. 12 Property Revaluation Reserve Social Housing Revaluvdtion Reserve Total Balance at l January 2024 Movement in the year 714.290 863,000 714.290 863,000 Balance at 31 December 2024 £1,577,290 £1,577,290 13 Investment Revalugtion Reserve Eitraordinary Cyclical Repairs Maintenance Revaluation Revaluation Total Balance at l January 2024 Unrealised sury)Ius 155,814 13.J53 29,860 3,260 185,674 16,413 Balance at 31 December 2024 £168,967 £33,120 £202,087 Page 22

KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14 Accumulated Income Reserve Balance at l January 2024 224,409 Surplus for the year excluding movement in fair value of inveslments (207,440) Transfer from/(to).' Investment in propety - loan movements tnvestment in property - additions DeSIgated funds - extraordinary repair nd under spend Designated funds - cyclical maintenance fund under spend Designated funds - Decent Homes Slandard 179,743 (45,154) (14,417) (22,038) (15,000) 83,134 Balance at 31 December 2024 100,103 15 Analysis of net assets between funds Tangible Fixed Assets Investments Creditors due after Total Net Current Assets one year 3111212024 Pern]anent endowment funds Designated funds Property revaluation reserve Investment revaluation reserve Accumulated incom¢ r¢s¢ry¢ 61,359 90,459 61.359 1,940,908 1.577,290 202,087 100,103 2,240,710 1.577.290 78.008 (468,269) 202.087 100,103 £3,818,000 £353,905 (468,269} £3,881,747 The net current liability position is covered by future loan drawdowns and promised grants. Tangible Fixed Assets Investmenls Creditors due after Total Net Current Liability Compardtives: one year 3111212023 Pennanent endowment funds Designated funds Property Tevalualion reserve Investment revaluation reserve Accumulated income reserve 59,844 90,459 59.844 2,024,042 714.290 185,674 224,409 2,080,710 714,290 144.136 (291.263) 185,674 fv11,486 (417,077) £3,436,486 £335,977 (272,941) (291,263) £3,208,259 Page 23

STABLE< THOMPSON & BRISCOE www.stb-accountants.co.uk Our thrence: HHIKENI 20 19 May 2025 The Trustees Kendal Almshous¢ Charity ¢10 36 Finkle Street Kendal LA9 4AB Dear Ladies and Gentlemen. Kendal Almshou8e Chari rt to Mana ment for the eriod ended 31 December 2024 It is nornial procedure on completion of our audit work to write to inforn] you of the results of OUT audit and any findings where w¢ wnsider that changes should be made to your a¢counting pmc¢dures. The general findings of our audit were that the charity's financial transactions had been well eontrolled and that the accounting r¢¢ords had been accurately rn&intain¢d. Th¢re were a number of matters which arose during the course of our audit which we ¢onsider should be brought to your attention, or ¢0MMendatiOnS for wssible improv¢ments which could be mad¢. These matters came to light during the course of our nornial audit tests which are designed to assist us in forniing our opinion on the financial stat¢m¢nts. Our tests may not nec¢ssarily disGlose all ¢rrors or irregularilies and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of Course, inforni you immediately. We would be grateful if you could enter your comments against each point under the 'comments" column of the m¢morandum and return it to us in due cour. We have complied with the Ethical Standard for Auditors and all threats to our independence have been properly addressed through appropriate safeguards. No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention, and we confirm that we are independent and able to ¢xpress an objective opinion on the financial statemcnts. This report has been prepared for the sole use of the trustees of the Kendal Almshouse Charity 8nd with the exception of the Homes and Comrnunities Agency Regulation Committee must not be shown to third parti¢s without our prior cons¢nt. No Tcsponsibilities ar¢ accepted by Stables Thompson & Briscoe towards any party acting or refraining from action as a result of Ihis report. Finally, we would like to express our thanks to all members of the charity's staff who assisted us in carying out our work. Yours sincerely KvThtki ofrl.w. Loher HDU5e, Lowther Slreel, Kendal, Cumhria L.49 4DX Tel: IOI 539) 720465 Email: enquiriesQsilhaccovntants.co.uk Krikby Syh•7 offL,. Ur)il 27, Lumberlatbd House. Kirkby Stephen Bv5inc55 Park, 5t Luke'5 R()ad. Kirkby Stephen, Cumbria CA17 4HT Tpl: 1017683171272 Email: kirkby@5tb-accountants.co.uk Ltd . RtyoI¢J in Engand- Compa¥ty T 632961tl Re8e oifKe- Ltther H$, Llhrther *reet. Kendal. r.umbria LA9 4DX A list of Diwlor5 15 a¥ai13hle aiwW-aCt0UtI15.t.UkjatM-uDUI&ITeaos

KEIqDAL ALMSHOUSE CHARITY SIGNIFICANT MArrERS RELEVANT TO OUR AUDIT FOR THE YEAR ENDED 31 DECEMBER 2024 Audit gpproAcb There wer¢ no changes to our audit approach as set out in our meeting with you. poIF¥rs NOTED, IMPLICA TIONS AND RECOMMENDATIONS COMMENTS The bank reconciliation and pur¢has¢ procedur¢ system notes need updating as these still mention old software Landmark instead of QuiGkBooks. One RPT noted. There was a payment of £6.30 to trustee John Stirling for reimbursement of travel expenses to a urSe. Any amoun( howevcr small needs identifying for disclosure in the accounts. Internal controls The PUTpose of the audit was for us to express an opinion on the financial statem¢nts. The audit included ¢onsideration of intemal controls relevant to the preparation of the financial stst¢ments in order to design audit procedures that ar¢ appropriate in the circumstances, but not for the purpose of expr¢ssing an opinion on the effectiveness of internal Control. Our audit i& therefore, not desIed to identify all ¢ontrol weaknesses and the matters reported ar¢ limited to those defici¢ncies that we have identified during the audit. Summary of audit differenw and draft letter of representgtion The total unadjusted misstatements identified in our audit work amounted to £1,206. We have sent a draft letter of management representations required in cOnntIon with our audit to you separately for approval. Anti¢ipatsd audit report We anticipate that we will issue an unmodifted audit port for the year, subject to the satisfactory clearance of any outstandintyunresolved the matters outlined in this report.