KENDAL ALMSHOUSE CHARITY Registered Charity Number 1172208 Homes England 5097 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Stables Thompson & Bris¢oe Chartered Aeeountants ststutory Auditor5 KENDAL ALMSHOUSE CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS Charity inforniation Trustees, Report Statement of Trustees, Responsibilities Independent Auditors, Report 9- 11 Statement of Comprehensive tncome 12 Statement of Changes in Reserves 13 Statement of Financial Position 14 Notes to the Financial Statements 15-23 KENDAL ALMSHOUSE CHARITY CHARITY INFORMATION Established as CIO 22 Ma￿h 2017 Principal Otyice Suite I, Cumbria Tourism Business Centre Windemiere Road Staveley LA8 9PL Registered Numbers Registered Charity Number l 172208 Homes and Communities Agency Registration Number A1059 Trustees Mr P G Duck5bury ( Chair) Ms C Roberson (Vice Chair) (resigned 20 October 2025) Mrs S J Barron Mrs H Fitch Ms L Gray Mrs J Hale Miss D Lund Mr J Stirling Mr C Thomson (appointed 21 May 2025) Managing agent H & H Land & Estates Suite I, Curnbria Tourism Business Centre Winderniere Road Slaveley LA8 9PL Tel.. 01539 721375 Bankers Barclays Bank PIC 9 Highgate Kendal Cumbria LA9 4DF Independent Auditors Stables Thompson & Briscoe Chartered Accountants Statutory Auditors Lowther House Lowther Street Kendal LA9 4DX Page I KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Trustees present their report and the audited fmancial statements for the year ended 31 December 2025. Governance, Aims, Structure and Management Governin Document The Kendal Almshouse Charity was originally five charitable organisations registered with the Charity Commission. In 1987, the charities were amalgamated to creale the Kendal Almshouse Charity under a Mernorandum of Association which established the objects and powers of the charitable organisation. dated 2 December 1987. In 2014 the assets and liabilities of Kendal War Memorial Trust were aquir¢d by the Kendal Almshouse Charity. In March 2017, Ihe Charity Commission approved the conversion to a Charitable Incorporated Organisation (CIO). AII the assets and operations were transfe￿ed into the CIO from June 2017. The Charity Number of the CJO is 1172208. Recruitment and A intment of Trustees There are eight Trustees at the date of this report. with one new trust¢e recruited during the last year. Mr P G Ducksbury remains Chair. Ms C Roberson resigned during the year and Mr C Thomson joined as Tn￿tee. Ten Trustees would be the ideal stNcture. Trustees are encouraged to "network" to find suitable new Trustees and the Chwity advertises positions available. The skills of the Trustees are regularly reviewed. and they are all encouraged to take a lead in an aspect of the Charity business. Each Trnstee is appointed to at least one of the three conllnittees; Finance, Buildings or Lettings. li is the policy of Ihe Charity to appoint Trustees with experience in the letting of residential property, care of the elderly and those in need, building construction, fjnance, investment and legal matter5. Trustee Induction and Trainin Prior to appointment of new Trustees. the candidates are provided wilh an induction pack which includes the Governing Instrument and minutes of recent quarterly meetings of the comrnittees and the thll Trustees. The Chair and Clerk meet candidates to discuss the background, history and policy of the Charity, together with the future plans and objectives of the organisalion, before thetr appointm¢nt. Ea¢h pot¢ntial Trustee attends a quarterly Trustee meetirJg* 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 Almshouse Management publication is made available for candidates. New Trustees are issued with a Trustee Handbook which d¢tails how the Charity is run and what is expecled of th¢m. The implications of being a Regist¢r¢d S￿la1 Housing Provider are also explained to new Truslees. Page 2 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER2025 nisational Structure The Finance Committee chaired by Mrs J Hale meets at least every quarter, before each quarterly TTUStee meeting. The Letting Committee and Building Committee meet regularly. All committees comprise a minimum of three Trnstees and operate under lern)s of reference. The Letting Committee chaired by Mrs H Finch meets to decide to appoimt applicants seeking a home. based on the aims and objectives of the Charity and the circumstances of the individual applicants. It also liaises wilh the Building Committee as regards upgrading of vacant units. The function of the Building Comrnittee ¢hatred by Miss D Lund is to advise the Trustees on majoT ijnprnvements, re￿￿)ishMent schemes and the conclusions of the quinquennial survey reports. Quinquennial reports are obtained on the geueral condition of the housing stock with recommendations on improvements and urgent repairs needed. These reports are undertaken by a professional Building Surveyor. Quinquennial inspections are underway. Pending their outcome, no significant building repairs have been undertaken but there is an ongoing programme of replacing boilers. internal upgrades and external decoration. In 2025 the Charity completed the construction of two new houses at Romleigb part funded by a grant from Homes England and a loan from the Charity Bank. In June 2025, the Charity repaid £200,000 of the loan from Charity Bank, earlier than scheduled. The charity follows the n]les and regulation5 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 nornially meets immediately prior to the full trustees meeling, providing accurate and timely reporting. The Accountants are Registered Auditors, and the Clerk is a member of the Royal Institute of Chartered Surveyors, H & H Land & Estates. Together with the existing management structure and administrative aTfdngernents in place, regular monitoring of the agreed risk management policy and applicable indemnily insuranee arrangements. the Trustees are Satisfi￿ that approprialc risk management practices are in place to meet the Deeds of the Charity and protect its activities. To address the potential risk associated with the in)pendiDg retirement of the Clerk, the Trustees have agreed and signed a Service Level Agreement with the Clerk's professional offices, Chartered Surveyors. The Clerk's Office has instigated the gryadual transfer and delegation of the Clerk's duties to colleagues, including the A¢¢ounts and Administration Department. The Service Level A￿CeMent was renewed from I st January 2024 for a three year period. The Trust regularly reviews its policies by looking at two to thre¢ at each quarterly meeting. During 2024, up to the present date, ahnost all the policies and the risk assessment have been reviewed and updated. Increases in interest rates are a risk and now that the fmal project costs are known, the Finance Committee will consider the merits of using some of the reserves lo reduce the loan. Page 3 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 Risk Mana ment continued Going fonvard, the main risks are repairs and maintenance required to properties, upgrades required to comply with legislation (particularly with regard to Minimum Energy Efficiency Standards) and breaches by occupieTS. Conflicts of Interest At the start of each meeting of Trnstees, including Committee ll3eetings, attendees are asked to declare any conflicts of interest as well a5 signing a declaration that they are not connected to any of the regular suppliers and contractors engaged by Ihe Charity. Objectives and Activities Public Benefit The Charity's principal objective is to provide a wide range of affordable unfurnished homes for those in need and who reside in the town of Kendal, Cumbria, and adjoining parishes, as defmed in the Charity's Governing Instrument. Depending on the level of interest from these a￿a$, it is perniissible to extend the defined region into the areas fornially within the District of South Lakeland and the Borough of Barrow-in-Furness (now within Westmorland & Furness Council). The Trustees confm that they have reviewed the Charity Commission's guidance on the provision of public benefit and consider that the public benefit requiremenl is duly satisfied by the activities carried out in achieving the Charity'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 forn]. All application5 are fomially considered by the Letting Committee, which will interview applicants as necessary. No restrictions are placed on applications by virtue of gender or for social. religious or ethnic reasons. Under the provisions of the Governing InstrumenL preference is given to persons aged 50 years or more. Westmorland and Furness Council works closely with the Charity to help identify those in need in the area. The Charity also liaises with Social Services to adapt properties for the benefit of occupiers. At the date of this reporL all housing stock is occupied. there are no vacancies and no significant arrears. Achievements and Performance Tar et Rents The weekly maintenance ¢ontributAons are nlaintained within the guidelines of the Homes and Communities Agency. All the housing stock are now at tsrget rents. The weekly maintenance contributions were reviewed and increased in line with the Homes England guidelines, with effect from January 2025. rovemenls 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 irnprovements and other work needed to maintain the buildings in a good state of long-terni repair. Additionally, the opportunity is nonnally taken, when a property become5 vacanL to improve the facilities as necessary. Supporting illitiatives involve upgrading the quality of the Charily's housing stock to achieve Decent Homes Standards. a requirement of the Homes England as Kendal A1rn5house Charity is a Registered Social Housing Provider {RSHP). Page 4 KENDALALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 overnents and Maintenance continued The lasl quinquennial building surveys were undertaken in 2020 and focused on the nine almshouses at Sandes Hospital and two at Romney Road. All items highlighted to be addressed in the medium tenn have been addressed. The other almshouses were surveyed prior to 2020 but the Sleddal Victoria Almshouses were substantially re￿rb1shed and restored after the 2015 floods, to comply 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 two new energy-efficient one-bedroom almshouses, completed November 2024. The two bungalows are now OCCUPAed. Exiernal decoration were completed in 2025. As properties have become vacant, they have undergone minor improvements and refuTbishment. The Charity adheres to regulatory requirements in respect of annual gas safety certificates and five yearly Electrical Installation Certificate Reports (EICRS). It take5 a pro-active approach to replacing boilers which are nearing the end of their life. Following completion of the new development at Roml¢igh, with the implkcations of the associated costs, it was decided to instigate quinquennial building surveys on all the housing stock, excluding Romleigh. The inspections for the surveys started in December 2025 and continues into 2026. The conclusion of the survey reports will provide the basis for forward planning during 2026, for improvemenls, repairs and any essential roof repla¢em¢nt5 and any structural wo￿. Financial Revlew An annual budget was considered and agreed by the Trustees at the 2025 and 2026 meetings, based on the recomrnendations from the National Association of Almshouses for annual amount5 for each of the three desI￿ated funds, being routine maintenance, extraordinary iepairs and cyclical maintenance. The outcome of the charity's operations for the year ended 31 st December 2025 shows an operating surplus in the Siatement of Comprehensive Income of £78.943 (2024 - £344,979 which included grants of £248,000). If grants for last year were excluded this would compare to £96,979 in 2024. Total comprehensive income was £73,652 (2024 - £673,488 for the year primarily due to the revaluation of the housing properties). Reserves Polic At 31 December 2025 the Charity had a sulplus on accumulated income of £24,434 (2024 - £100.103} befoTe the long terni mortgage of £265,323 (2024 - £468.269). The Trustees have adopted a reserves policy to build a free reserve equivalent to one year's income from weekly maintenance contributions (currently £235,000). The reserve set aside provides financial stability and the means to the developnient of the principle activity. The reserve level is set with the knowledge that significant void level8 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 flooding, although flood prevention measures are currently under Construction. The Trustees meet quarterly to review the amount of reserves that are required to ensure that they are adequate to Ifil ihe continuing obligations. Trustees will consider whether to use further reserves to reduce the balance of the loan at the next Trustees meeting in April 2026. Page 5 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EIYDED 31 DECEMBER 2025 Investment Polic The total investments at 31 December 2025 are £266,361 (2024 - £353,905). The Charity's objective for the investmenl of fi]nds not required for short-terni and medium-tenn operational reasons is to apply such fvnds so a5 to achieve a balance between income generatTron and capital growth oveT the longer terrn, consistent with the degree of risk considered acceptable by the Trustees. A¢¢ordingly, the funds are invested in CCLA'S Charities Investment Fund (COIF) and M & G's Charity Multi Asset Funds which aTe consideTed to provide an adequate spread of risk and an acceptable retun] and are n]onitored regularly by the Finance Committee. Value for money Kendal Almshouse Charity assesses how it is achieving value for money in delivering its purpose and objectives, in accordance with the Tegulator's standard on value for money. This means managing resources economically* effjcientty and effectively to provide qualiry services and homes. The TNstees review target rents, investment perfonnance, expenses and the charity'5 resources while seeking to achieve decent homes standard and maintain the level of service expected by tenants. Value for money metries Kendal Almshouse Charity is a small provider for the purposes of disclosure of the Value foT Money Metrics. Disclosures are as follows.. 2025 2024 2023 2022 2021 Reinvestment % New supply delivered Gearing EBITDA MRI Interest cover Headline Social Housing Cost per unit Operating margin Return on Capital Employed o/ o/ 0/0 8d/. 5800/0 3720/ 3080/0 331% -2860/0 £4,015 £3,370 1470/0 £3,837 £4,535 230/0 £5,033 The Value for Money Metrics are variable as this is a small RSL and any project will affect the ratios more than larger RSLS. Page 6 KEIYDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 ststement of complianee Kendal Almshouse 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 annuaj 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 20 April 2026 and signed on their behalf by., P G Dueksbury Chair Page 7 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EI¥4DED 31 DECEMBER 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Charities Acts and registered social housing legislation require the Trustees to prepare f]nancial statements for each financial year which give a true 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 Trustees are required to: select suitable accounting policies and apply them consistently. make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the f￿ancIal statements. and prepare the fmancial statements on the going concern basis unless it is inappTopriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the fmancial position of the Charity and enable them to ensure that the financial ststements comply with the Charities A¢t 2011, the Housing and Regeneration 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 tsking reasonable steps for the prevention and detection of fraud and other irregularities, Approved by the Trustees on 20 April 2026 and signed on their behalf by: P G Ducksbury Chair Page 8 Independent Auditor's report to Ihe Trustees of Kendal Almshouse Charity Opinion We have audiled the financial statements of Kendal Almshouse Charty foi the year ended 31 December 2025. which comprise the Statement of Comprehensive Income. the StalemenÉ of Changes in Reserves, the Statement of Financial Position and notes to ihe fmancial statements, including si￿LfiCant accounting policies. The fmancial reporting framework thai has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepied Accounting Practice), In our opinion the financial statements: give a true and fair view of the state of the association's affairs as at 31 December 2025, and of its incoming resources and application of resources, includÈng its income and expenditure, for the year then ended. - have been properly prepared An accordance with United Kingdom Generally Accepted Accounting Practice. and - have been prepared in accordance with the requirements of the Charities Act 201 l. the Housing and Regeneration Act 2008 and 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) USAS IUK)) 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 association in a¢cordan¢e with the ethical requirements that are relevant to our audit of the fmancial statements in the UK, including the FRC'S Ethical Standard, and we l)ave fulfilled our other ethical responsibilities in a¢¢ordance with these requirements. We believe that the audit evidence we have obtained is sufficienl and appropriate to provide a basis for our opinion. Conclusions relating to going contern In auditing the financial stalements, M'e have concluded that ihe 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 perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the association's ability to continue as a going concern for a period of at leasl twelve monihs from when the f￿ancial staten)ents are authorised for issue. Our responsibilities and the responsibilities of the board with respect to going concern are described in the relevant section5 of this report. Other information The other inforniation comprises the information included in the Trustees, Report , other ihan the financial statements and our auditor's report thereon. The board are responsible for the other infonnation contained Ivithin the Trustees, Report. Our opinion on the fllMncial statements does not cover the other inforniation and. except to the extent othenvise explicitly stated in our reporL we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other inforniation and, in doing so, consider whether the other iThforn]ation is rnaterially inconsistent with the fmancial statements or our knowledge obtained in the course of the audit. or othenvise appears to be materially misstated. If we idenlify such material inconsistencies or apparent inaterial misstatements, we are required to deterniine whether this gives rise to a material misstatement in the fmancial sLqtements themselves. If, based on the work we have perforn]ed, we conclude that there is a material misstalement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are requir￿ to reporl by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us lo report to you if, in our opinion: the infomJatlOD 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 tbe Trustees of Kendal Almshouse Charity (continued) Matters on which we are required to report by exception continued the fmancial siatethents 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 R¢generation Act 2008 requires us t4) report to you if, in our opinion: a satisfactory system of control over tran5action5 has not been maintained. Responsibilities of the board As explained more fvlly in the board's responsibilities statement set out on page 8, the board members {who are also the trustees of the association for the purposes of charity law) are responsible for the preparation of the financial statements and foi being satisfied that they give a true and fair view, and for such internal control as the board deterniine is necessary to enable the preparation of financial stalements that are free from malerial misstatemenL whether due to fraud or error. In preparing the fu)an¢ial statements, the board is responsible for assessing the association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using ihe going concern basis of accounting unless the board either inlends to liquidate the association or to cease operations, or has no realistic alternative but to do so. Auditor's responsibfilities for the audit of the financial statemenls Our objeclives are to obtain reasonable assurance about whether the fmancial statements as a whole are free from material misstatement, whether due lo fraud or ¢￿0[, 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 exlsts. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these fmancial ststements. ITregularities, including fraud, are instances of non-complian¢e with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. We identified areas of laws and regulalions that could reasonably be expected to have a rnaterial effect on the fmancial statenients from our experience and from discussions with management. We reviewed any related Co￿eSpondence and records of trustee meetings to assess compliance with laws and regulations and discussed the current 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 a managemenl company which reduces the risk of fraud. We assessed the management company's policies and procedures on fraud risks. No instsnces 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 misstatemenls in the financial statements, even though we have properly planned and perfonned our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and Tegulations (irregularities) is from the events and transactions reflected in the fmancial statements, the less likely the inherently limited procedures required by audtting standards would idenlify it. In addition, as with any audit, there remained a hi¥her risk of non-detection 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 cannoi be expected to detecl compliance with all laws and regulations. A fvrther description of OUT responsibilities is available on the Finan¢ial Reporting Council's website at: https:Ilwww.frc.org.uklOur-Work/AudiLIAudit-and-assurancelStandards-and-guidancelStandards-and-guidance-for- auditorslAuditors-responsibilities-for-audiUDescription-of-auditors-responsibilities-for-audit.aspx. This description fonns part of our audilor's report. Page 10 Independent Auditor's report to the Trustees of Kendal Aknishouse Charity (continued) Use of this report This report is made solely to the association's board, as a body, in accordance with Part 4 of the Charlties (Accounts and Reports) Regulations 2008 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we mighi state to the association's board those matters we are required to slaie to them in an auditor's report and for no other PUTpose. To the fullest extent permitted by law, we do not accept or assume responsibilty to anyone other than the association and the association's board as a body, for our audit worK for this report, or for the opinion5 we have fonned. Stables Thompson & Briscoe Statutory Auditor tA>Wther House IA>wther Street Kendal Cumbria LA9 4DX Date: Slables Thompson & Briscoe is eligible lo act as an ouditor in terms ofsection 1212 ofthe Copnpanies Aci 2006. Pagell KENDAL ALMSHOUSE CHARITY ST ATEMEIYT OF COMPREHEI¥4SIVE INCOME (INCLUDING INCOME AND EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2025 Year ended 3111212025 Year ended 3111212024 Notes Turnover Maintsnance contributions from residents Less: losses from voids 262,043 (3,192) 241,443 (6,397) 258,851 235,046 Operating Costs Services Routine maintenance Cyclical maintenance Extraordinary Tepairs Quinquennial reports Management 45,292 20,959 31.797 24,584 15,390 42,000 35.988 26,389 21,810 12.421 41,572 (180,022) (138,180) Other income Donations and wayleave Grant received for Romleigh development 114 113 248,000 114 248,113 Operating Surplu51(Defi¢it) 78,943 344.979 Income from fixed asset investments Interest receivable and similar income Interest and f￿ancing costs Movement in fair value of investments Downward revaluation of housing properties 3,835 1,894 (24,474) 13,454 3,698 2.904 {32,381) 17,928 (526,640) Surplu$/(Deficit) on Ordinary Aclivilies Before Taxation 73,652 (189.512) T￿ation on SUTplus on ordinary activities (n) Surplus l (deficit) for th¢ year 73.652 (189.512) Revaluation of tangible fixed assets 863.000 Total tompreheusive income for the year 73,652 673,488 ancial ststements were approved by the Trustees on 20 April 2026 and signed on their behalf by. JLnL4fv AlolL ksbury Mrs J Hale Trustee Trustee The annexed notes forn] part of these fmancial statements. Page 12 KENDAL ALMSHOUSE CHAIUTY STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2025 Property Investment Restricted Endowment Designated Revalu3tion Revaluation Ae¢umul*ted reserves reserves reserves r¢s¢rve rtserve income Total Al 31 De¢¢mb¢r 2023 and l January 2024 59,844 2,024,042 714,290 185,674 224,409 3,208,259 Surplus (deficit) for the year Transfers belween reseryes Revaluation 1.515 16,413 (207,440) (189.512) 83.134 (8.3,134} 863,000 863.000 Total eompreheDsive income 1,515 (83,1341 863.000 16,413 (124,306) 673,488 At 31 December 2024 and l January 2025 61,359 1.940,908 1.577.290 202.087 100.103 3,881,747 Surplus (deficit) for the year Transfers betsveen reserves Revaluation (437) 13.891 60.198 (135,867} 73,652 135,867 Total comprehensive income (437) 135,867 13,891 (75,669) 73,652 At 311)ecember 2025 60,922 2.076.775 1,577,290 215.978 24.434 3,955,399 The annexed notes form part of these financial statement5. Page 13 KENDAL ALMSHOUSE CHARITY STATEMEIYT OF FINANCIAL POSITIOIY AS AT 31 DECEMBER 2025 Notes 3111212025 3111212024 Fixed Assets Tangible fixed assets Investments 3,818,000 266,361 3,818,000 353,905 4,084,361 4,171,905 Current Assets Debtors Bank Current account Bank Deposit accounts 9,841 72.969 156,917 76,227 103,642 190,072 239,727 Creditors Amounts falling due within one year (53,711) (61,616) Net Current Assets 136,361 178,111 Total assets less current liabilities 4,220.722 4,350,016 Creditors Amounts falling due after one year {265,323} (468,269) Total Net Assets 15 £3,955.399 £3,881,747 The Funds of the Charity Pernianent endowment fimds Designated funds Prop¢ny revaluation reserve Investment revaluation reserve Accumulated income reserve io 60.922 2.076,775 1,577,290 215,978 24,434 61,359 1,940,908 1,577.290 202,087 100,103 12 13 14 £3,955.399 £3,881,747 These financial statements We￿ approved by the Trustees on 20 April 2026 si on thcir behalf by: PGDUC Trust¢e Mr5 J Hale Trustee The annexed notes forn] part of these financial statements. Page 14 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31 DECEMBER 2025 Principal Accounting Policies a) Legal status Kendal Almshouse Charity is a Charitable Incorporated Organisation (CIO} registered with the Charity Commission on 22 March 2017 (number l 172208) and is a private registered provider of social housing in the United Kingdom. The Charity constitutes a public benefit entity as defjned by FRS 102. b) Basis of aceounting The financial statements have been prepared in accordance wilh applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102), the Statement of Recommended 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 R¢generdtion Act 2008 and the Charities Act 2011. The fmancial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterlin& which is the tsnctional currency of the Registered Provider, and rounded to the nearest The significant accounting policies applied in the preparation of these fmancial statements are set out below. These policies have been consistently applied to all years presented unless othernvise stated. As a small entity, the Charity is not required to produce a Cash Flow Statement. ) Going concern The trustees consider that there are no material uncertainlies about the Charity's ability to conlinue as a going concern. d) Tangible fixed assets Tangible fixed assets (including social housing properties} are stated al cost or valuation less accumulated depreciation and accumulated impainnent losses as appropriate. Cost includes costs directly attributable to making the asset ¢apable of operating as intended such as the cost of acquiring land and buildings, development costs, interest charges on loans during the developmeni 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 Charity's tangible fixed assets are made up of housing properties which ate principally almshouses some of which were acquired in 1887 aJ)d 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 wa5 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 assets. at rates calculated to write off the cost, less estimated residual value. In the case of fhe housing properties held at valuation, depreciation is considered to be immaterial due to the high residual value and so is not provided. Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually. Page IS KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Principal Accounting Policies (continued) d) Tangible fixed assets (eontinued) As the housing properties are now shown al existing use valuation for social housin& 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 credilors receivable I payable within on¢ year Debtors and creditors with no stated intcrest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaiTment are recognised in the statement of comprehensive income in other administrative expenses. Rights of social landlords to have improvement works carried out to properties by a third paty (such as a local authority) are iecognised as prepayments where payment ha5 o¢¢urrcd in k￿vance of the works being ca￿]ed out and receipts in advance from the same third party recognised as liabilities. Assets and liabilities or income and expenditure are not offset. Investments tnvestments are reCO￿lS¢d initially at cosl. Subsequently, they are measured at fair value through the statement of comprehensive income if the shares are publicly trdded or their fair value can otherwise be measured reliably. Other investments are measured at cosl less impairnient. g) Loans and borrowings Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequenily, they are measured at amortised cost using the effective interest rate method. less Trmpairnient. If an arrangement 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 expenditure is matched against that expenditure by being included in turnover in the income and expenditure account. The related expenditure is included under operating costs. SHG is recognised in the same period as the related expenditure provided the conditions for its receipt have been satisfied and there is Teasonable assurance that the grant will be received. Capitsl grants are shown in liabilities until the project is completed and then released to turnover. i) Provisions Provisions are recognised when the ChaTity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. Provisions for cyclical maintenance or major WOTks to existing stock are not made unless they represent commitments or obligations at the Balanc¢ Sheet date where there is no discretion to avoid or delay the expenditure. Recycled CLWital Granls Fz4nd Capitsl grdnts 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 Communitie5 Agency (HCA) and they are credited to the Recycled Capital Grant Fund within liabilities. Page 16 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ST ATEMENTS FOR THE YEAR ENDED31 DECEMBER 2025 Principal Accounting Policies {¢ontinued) i) ProvisioDS (CODtinued) In certain circumstances, such as the sale of housing properties, capital grants may be repayable, and, in that event, is subordinated to the repaymenl of other loans by agreement with the Homes and Communities Agency (HCA). It is accounted for as soon as the liability arises within Creditors: Amounts falling due wiihin one year. When any grant to be rpxycled or repaid is less than the grant relating to the disposal, the difference is treated a5 abated grant. Abated capital grants are treated as a component of the surplus or deficit on disposal. j) Turnover and other income Tumover is measured al the fair value of the consideration received or receivable including VAT and net of trade discounts. The policies adopted for the recognition of turnover are as follows: Turnover represents rental and se￿1¢C charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and the Homes and Communities Agency. Prop¢rty MoA&Yged ty Agenls Where the Charity carries the financial risk on property managed by agents, all the income and expenditure arising from the property is included in the Statement of Comprehensive Income. Where the agen¢y carries the financial risk, the Statement of Comprehensive Income includes only that income and expenditure which relates solely to the Charity. Interesl and dividen(£s receivable tnterest income is recognised using the effective interest method and dividend income is Tecognised as the Charity's right lo 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 inCU￿ed. l) Extraordinary Repairs Costs of extraordinary repairs, unless representing capital improvements to the properties, ate charged to the Income and Expenditure Account in the year in which they are incuLTed. m) Value Added TAX Kendal Almshouse Charity is not registered for VAT. In these financial statements, 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 2025 Prineipal Aeeounting Policies (continued) o) Designated and Restrieted Funds General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been desi￿ated for other pury)oses. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fimd is set out in the notes to the fmancial statements. Restrlcted ￿ndS are funds which are to be used in accordance with specific restrictions imposed by donors or which have been Tais¢d by the Charity for particular purposes. The cost5 of raising and adminislering such nds are charged against the spe¢ific fund. The aim and use of each fund is set out in the notes to the fU￿)rIal statements. Endowment funds represent those assets which must be held pernianently by the Charity, principally investtnents. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unre5tri¢ted income. Any capital gains or losses arising on the investments forni part of the fund. Investment managemenl Charges and legal fees relating to the fund are charged against the fund. tnvestment income and gains are allocaled to the appropriate fund. There are three designated funds in these accounts: Property Fund This represents that proportion of the cost of properties which was fmanced by charitable donations and the Charity's own resources. Cyelieal Maintenance Fund This Fund Tepresents amounts set aside for cyclical maintenance to meet Costs in excess 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 and key management personnel remuneration Key management are defmed as the Trustees. None of the Trustees received any emoluments or benefits. Reimbursed expense5 to trustees amounted to £619.53 of which £503.53 were travel expenses, £86 were DBS checks and £30 was a gift voucher. The Trustees have a service agreement wilh H&H Land & Estates who manage the properties on a day to day b&sis. The management fees payable were as follows: 3111212025 3111212024 Management fees £42,000 £41,572 Page 18 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Surplus on Ordinary Activities 3111212025 3111212024 Surplus on ordinary activities is stated after charging.. Auditors, remuneration in their Capacity as Auditors Surplus/(deficit) on fair value movement of investments £7,260 £13,454 £6,350 £17,928 Auditors, remuneration includes £3,654 for preparlng the accounts. 4 Fixed As5cts: Freehold Housing Property Sledall Victoria and Aynam Chapel Nobles Rest Sandes Hospital John Aston Watkins Romleigh and War Total -hfi.pmnri2 Gardens Valuation I January 2025 1.845.000 1,013,000 470,000 250,000 240,000 3,818,000 Transfer (Ijnpairnient) Revaluation Valuation as at 3111212025 £1,845,000 £1.013,000 £470,000 £250,000 £240,000 £3,818,000 The properties were independently valued as ai 31 December 2024 by Edwin Thompson on 17 April 2025. The valuations reflect the almshouse and resid¢n¢y restrictions which equates to existing use value - social housing as required by the Housing SORP 2018. The discount on open market value was between 350/o- 500/0 depending on the property. The properties were all held for letting and represented 42 general housing units. General works to properties amollnled to £77,340 (2024 - £60,620). The original cost of the properties is a mix of the valuation at the time of transfer to the charity and subsequent development WOTk and amounts to £3,582,047 (2024 - £3,582,047) less Social Housing grants of £449,120. Last year the redevelopment of the Romleigh site was completed and was transferred into Freehold Housing Property from Asset in the course of construction in November 2024. This propety was independently re- valued at 31 December 2024 using the same valuation rnethodology (existing use value minus social housing) and as such the valuation has been capped at £240,000. An impairnient of £526,640 was recognised as th¢ difference between historic cost including redevelopment and the value as at 31 December 2024. Page 19 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 3] DECEMBER 2025 Investments Extraordinary Permanent Cyclical Repairs Endowment Maintenance Fund Fund Fund Total Historical cost at l January 2025 46,102 13,714 44,357 104,173 Historical cost at 31 December 2025 £46,102 £13,714 £44,357 £104,173 Market value at l January 2025 Disposals Unrealised surplusl(deficit) 215.069 (100,998) 8,704 61,359 77,477 353,905 (100,998) 13,454 (437) 5.187 Market value at 31 December 2025 £122,775 £60.922 £82,664 £266,361 All the investment5 are placed wlth CCLA'S Charities Invesknent Fund (COIF) and M & G's Charity Mulli Asset Funds. 6 Debtors: Amounts Falling Due Within One Year 3111212025 3111212024 Weekly maintenance contributions Other debtors Prepayments 560 1,477 9,643 8,364 £10,203 £9,841 Creditors: Amounts Falling Due Within One Year 3111212025 3111212024 Trade creditors Bank loan due within one year Grant received for asset in the COUTse of construction Asset in the course of constrnction contracted expenses Accrnals and deferred income 41,130 5.321 45,863 9,153 7,260 6,600 £53,711 £61.616 Page 20 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 8 Creditors: Amounts Falling Due After One Year 3111212025 3111212024 Bank loan due after one year 265,323 468,269 £265,323 £468,269 Th¢ loan is repayabl¢ ov¢r 25 y¢ars, interest only for th¢ r￿St twelve months, with interest Charged at base rate +2.10/0. The loan 15 secured by a legal charge on the freehold housing property at Nobles Rest. Debt analysis Based on the lenders earliest repayment date, borrowings are repayable as follows.. 3111212025 3111212024 Within one yeaT or on demand One year or more but less than two years Two years or more but less than five years Five years or more 5,321 5,321 15,964 244,038 9,153 9,240 27,720 431.309 £270,644 £477,422 Capital grants received The charity has received assistance in renovation projects from the Homes and Community Agency and Westmorland and Furness Council by way of grants which would only be repayable if the 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 been made in these accounts. The amounts involved are as follows.. 3111212025 3111212024 Sleddall Victoria and Aynam Chapel Nobles Rest Sandes H05Pital John Aston Watkins Romleigh and War Memorial Gardens 618.960 115,423 102,197 27.540 282,028 618,960 115,423 102,197 27,540 282,028 £1,146.148 £1,146,148 This does not include grants received shown in Creditors: due within OT]e year. Page 21 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 10 Permanent Endowment Funds Permanent Investment Endowment R¢valualion Fund Fund Total Balance at l January 2025 Unrealised surylus 13,714 47,fv15 (437) 61,359 (437) Balance at 31 December 2025 £13,714 £47,208 £60,922 I l Designated Funds Extraordinary Repain Fund Cyclical Maintenanee Fund Property Fund Total Balance at l January 2025 Trfs (toyfrom Accumulated Income reserve Investment in property Transfer for Decent Homes Standard 1,654,858 172,156 2,758 (100,998) 7,500 113,894 12,329 1.940,908 15,087 105,780 15,000 206,778 7,500 Balance at 31 December 2025 £1,861,636 £81,416 £133,723 £2.076,775 The Property fund represents interna] funds invested in property. The other funds represent funds set aside for future works on property. 12 Property Revaluation Reserve Social Housing Revaluation Reserve Total Balance at l January 2025 Movement in the year 1,577,290 1,577,290 Balance at 31 December 2025 £1,577,290 £1.577,290 13 Investment Revaluation Reserve Extraordinary Repairs Revaluation Cyclical Maintenance Revaluatio Total Balance at l January 2025 Unrealised surplus 168,967 8,704 33.120 5,187 202,087 13,891 Balan¢¢ at 31 December 2025 £177,671 £38,307 £215,978 Page 22 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31 DECEMBER 2025 14 Accurnulated Income Reserve Balance at l January 2025 100,103 Surylus for the year excluding movement in fair value of investments 60,198 Transfer froml(to)'. Investtnent in property - loan repayment5 From extraordinary repair fund Designated ￿ndS - extraordinary repair tsnd under spend Designated funds . cyclical mainlenance ￿nd under spend Designated ￿ndS - Decent Homes Standard (206,778) 100,998 (2,758) (12,329) (15,000) (135.867) Balance at 31 December 2025 24,434 15 Analysis of net assets between funds Tangible Fixed Assets Investments Creditors due after one year Total Net Current Assets 3111212025 Pernianent endowment funds Designated fund5 Property revaluation reserve Investment revaluation rcserve Accumulated income reserve 60,922 (10.539) 60,922 2,076,775 1,577,290 215,978 24,434 2.240.710 1.577,290 111,927 (265.323) 215,978 24.434 £3,818,000 £266,361 136,361 (265,323) £3,955,399 The net current liability position is covered by ￿tllre loan drdwdowns and promised grants. Tangible Fixed Assets Investments Creditors due after one year Total Net Current Liability Comparatives: 3111212024 Pernianenl endowment funds Designated funds Property revaluation r¢s¢rv¢ Investment revaluation reserve Accumulated income reserve 61,359 90.459 61,359 1.940.908 1,577,290 202,087 50.103 2.190.710 1.577.290 128.008 (468,269) 202,087 50.103 £3,768,000 £353,905 178,111 (468,269} £3,831,747 Page 23 KENDAL ALMSHOUSE CHARITY Registered Charity Number 1172208 Homes England 5097 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Stables Thompson & Bris¢oe Chartered Aeeountants ststutory Auditor5 KENDAL ALMSHOUSE CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS Charity inforniation Trustees, Report Statement of Trustees, Responsibilities Independent Auditors, Report 9- 11 Statement of Comprehensive tncome 12 Statement of Changes in Reserves 13 Statement of Financial Position 14 Notes to the Financial Statements 15-23 KENDAL ALMSHOUSE CHARITY CHARITY INFORMATION Established as CIO 22 Ma￿h 2017 Principal Otyice Suite I, Cumbria Tourism Business Centre Windemiere Road Staveley LA8 9PL Registered Numbers Registered Charity Number l 172208 Homes and Communities Agency Registration Number A1059 Trustees Mr P G Duck5bury ( Chair) Ms C Roberson (Vice Chair) (resigned 20 October 2025) Mrs S J Barron Mrs H Fitch Ms L Gray Mrs J Hale Miss D Lund Mr J Stirling Mr C Thomson (appointed 21 May 2025) Managing agent H & H Land & Estates Suite I, Curnbria Tourism Business Centre Winderniere Road Slaveley LA8 9PL Tel.. 01539 721375 Bankers Barclays Bank PIC 9 Highgate Kendal Cumbria LA9 4DF Independent Auditors Stables Thompson & Briscoe Chartered Accountants Statutory Auditors Lowther House Lowther Street Kendal LA9 4DX Page I KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The Trustees present their report and the audited fmancial statements for the year ended 31 December 2025. Governance, Aims, Structure and Management Governin Document The Kendal Almshouse Charity was originally five charitable organisations registered with the Charity Commission. In 1987, the charities were amalgamated to creale the Kendal Almshouse Charity under a Mernorandum of Association which established the objects and powers of the charitable organisation. dated 2 December 1987. In 2014 the assets and liabilities of Kendal War Memorial Trust were aquir¢d by the Kendal Almshouse Charity. In March 2017, Ihe Charity Commission approved the conversion to a Charitable Incorporated Organisation (CIO). AII the assets and operations were transfe￿ed into the CIO from June 2017. The Charity Number of the CJO is 1172208. Recruitment and A intment of Trustees There are eight Trustees at the date of this report. with one new trust¢e recruited during the last year. Mr P G Ducksbury remains Chair. Ms C Roberson resigned during the year and Mr C Thomson joined as Tn￿tee. Ten Trustees would be the ideal stNcture. Trustees are encouraged to "network" to find suitable new Trustees and the Chwity advertises positions available. The skills of the Trustees are regularly reviewed. and they are all encouraged to take a lead in an aspect of the Charity business. Each Trnstee is appointed to at least one of the three conllnittees; Finance, Buildings or Lettings. li is the policy of Ihe Charity to appoint Trustees with experience in the letting of residential property, care of the elderly and those in need, building construction, fjnance, investment and legal matter5. Trustee Induction and Trainin Prior to appointment of new Trustees. the candidates are provided wilh an induction pack which includes the Governing Instrument and minutes of recent quarterly meetings of the comrnittees and the thll Trustees. The Chair and Clerk meet candidates to discuss the background, history and policy of the Charity, together with the future plans and objectives of the organisalion, before thetr appointm¢nt. Ea¢h pot¢ntial Trustee attends a quarterly Trustee meetirJg* 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 Almshouse Management publication is made available for candidates. New Trustees are issued with a Trustee Handbook which d¢tails how the Charity is run and what is expecled of th¢m. The implications of being a Regist¢r¢d S￿la1 Housing Provider are also explained to new Truslees. Page 2 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER2025 nisational Structure The Finance Committee chaired by Mrs J Hale meets at least every quarter, before each quarterly TTUStee meeting. The Letting Committee and Building Committee meet regularly. All committees comprise a minimum of three Trnstees and operate under lern)s of reference. The Letting Committee chaired by Mrs H Finch meets to decide to appoimt applicants seeking a home. based on the aims and objectives of the Charity and the circumstances of the individual applicants. It also liaises wilh the Building Committee as regards upgrading of vacant units. The function of the Building Comrnittee ¢hatred by Miss D Lund is to advise the Trustees on majoT ijnprnvements, re￿￿)ishMent schemes and the conclusions of the quinquennial survey reports. Quinquennial reports are obtained on the geueral condition of the housing stock with recommendations on improvements and urgent repairs needed. These reports are undertaken by a professional Building Surveyor. Quinquennial inspections are underway. Pending their outcome, no significant building repairs have been undertaken but there is an ongoing programme of replacing boilers. internal upgrades and external decoration. In 2025 the Charity completed the construction of two new houses at Romleigb part funded by a grant from Homes England and a loan from the Charity Bank. In June 2025, the Charity repaid £200,000 of the loan from Charity Bank, earlier than scheduled. The charity follows the n]les and regulation5 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 nornially meets immediately prior to the full trustees meeling, providing accurate and timely reporting. The Accountants are Registered Auditors, and the Clerk is a member of the Royal Institute of Chartered Surveyors, H & H Land & Estates. Together with the existing management structure and administrative aTfdngernents in place, regular monitoring of the agreed risk management policy and applicable indemnily insuranee arrangements. the Trustees are Satisfi￿ that approprialc risk management practices are in place to meet the Deeds of the Charity and protect its activities. To address the potential risk associated with the in)pendiDg retirement of the Clerk, the Trustees have agreed and signed a Service Level Agreement with the Clerk's professional offices, Chartered Surveyors. The Clerk's Office has instigated the gryadual transfer and delegation of the Clerk's duties to colleagues, including the A¢¢ounts and Administration Department. The Service Level A￿CeMent was renewed from I st January 2024 for a three year period. The Trust regularly reviews its policies by looking at two to thre¢ at each quarterly meeting. During 2024, up to the present date, ahnost all the policies and the risk assessment have been reviewed and updated. Increases in interest rates are a risk and now that the fmal project costs are known, the Finance Committee will consider the merits of using some of the reserves lo reduce the loan. Page 3 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 Risk Mana ment continued Going fonvard, the main risks are repairs and maintenance required to properties, upgrades required to comply with legislation (particularly with regard to Minimum Energy Efficiency Standards) and breaches by occupieTS. Conflicts of Interest At the start of each meeting of Trnstees, including Committee ll3eetings, attendees are asked to declare any conflicts of interest as well a5 signing a declaration that they are not connected to any of the regular suppliers and contractors engaged by Ihe Charity. Objectives and Activities Public Benefit The Charity's principal objective is to provide a wide range of affordable unfurnished homes for those in need and who reside in the town of Kendal, Cumbria, and adjoining parishes, as defmed in the Charity's Governing Instrument. Depending on the level of interest from these a￿a$, it is perniissible to extend the defined region into the areas fornially within the District of South Lakeland and the Borough of Barrow-in-Furness (now within Westmorland & Furness Council). The Trustees confm that they have reviewed the Charity Commission's guidance on the provision of public benefit and consider that the public benefit requiremenl is duly satisfied by the activities carried out in achieving the Charity'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 forn]. All application5 are fomially considered by the Letting Committee, which will interview applicants as necessary. No restrictions are placed on applications by virtue of gender or for social. religious or ethnic reasons. Under the provisions of the Governing InstrumenL preference is given to persons aged 50 years or more. Westmorland and Furness Council works closely with the Charity to help identify those in need in the area. The Charity also liaises with Social Services to adapt properties for the benefit of occupiers. At the date of this reporL all housing stock is occupied. there are no vacancies and no significant arrears. Achievements and Performance Tar et Rents The weekly maintenance ¢ontributAons are nlaintained within the guidelines of the Homes and Communities Agency. All the housing stock are now at tsrget rents. The weekly maintenance contributions were reviewed and increased in line with the Homes England guidelines, with effect from January 2025. rovemenls 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 irnprovements and other work needed to maintain the buildings in a good state of long-terni repair. Additionally, the opportunity is nonnally taken, when a property become5 vacanL to improve the facilities as necessary. Supporting illitiatives involve upgrading the quality of the Charily's housing stock to achieve Decent Homes Standards. a requirement of the Homes England as Kendal A1rn5house Charity is a Registered Social Housing Provider {RSHP). Page 4 KENDALALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 overnents and Maintenance continued The lasl quinquennial building surveys were undertaken in 2020 and focused on the nine almshouses at Sandes Hospital and two at Romney Road. All items highlighted to be addressed in the medium tenn have been addressed. The other almshouses were surveyed prior to 2020 but the Sleddal Victoria Almshouses were substantially re￿rb1shed and restored after the 2015 floods, to comply 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 two new energy-efficient one-bedroom almshouses, completed November 2024. The two bungalows are now OCCUPAed. Exiernal decoration were completed in 2025. As properties have become vacant, they have undergone minor improvements and refuTbishment. The Charity adheres to regulatory requirements in respect of annual gas safety certificates and five yearly Electrical Installation Certificate Reports (EICRS). It take5 a pro-active approach to replacing boilers which are nearing the end of their life. Following completion of the new development at Roml¢igh, with the implkcations of the associated costs, it was decided to instigate quinquennial building surveys on all the housing stock, excluding Romleigh. The inspections for the surveys started in December 2025 and continues into 2026. The conclusion of the survey reports will provide the basis for forward planning during 2026, for improvemenls, repairs and any essential roof repla¢em¢nt5 and any structural wo￿. Financial Revlew An annual budget was considered and agreed by the Trustees at the 2025 and 2026 meetings, based on the recomrnendations from the National Association of Almshouses for annual amount5 for each of the three desI￿ated funds, being routine maintenance, extraordinary iepairs and cyclical maintenance. The outcome of the charity's operations for the year ended 31 st December 2025 shows an operating surplus in the Siatement of Comprehensive Income of £78.943 (2024 - £344,979 which included grants of £248,000). If grants for last year were excluded this would compare to £96,979 in 2024. Total comprehensive income was £73,652 (2024 - £673,488 for the year primarily due to the revaluation of the housing properties). Reserves Polic At 31 December 2025 the Charity had a sulplus on accumulated income of £24,434 (2024 - £100.103} befoTe the long terni mortgage of £265,323 (2024 - £468.269). The Trustees have adopted a reserves policy to build a free reserve equivalent to one year's income from weekly maintenance contributions (currently £235,000). The reserve set aside provides financial stability and the means to the developnient of the principle activity. The reserve level is set with the knowledge that significant void level8 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 flooding, although flood prevention measures are currently under Construction. The Trustees meet quarterly to review the amount of reserves that are required to ensure that they are adequate to Ifil ihe continuing obligations. Trustees will consider whether to use further reserves to reduce the balance of the loan at the next Trustees meeting in April 2026. Page 5 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EIYDED 31 DECEMBER 2025 Investment Polic The total investments at 31 December 2025 are £266,361 (2024 - £353,905). The Charity's objective for the investmenl of fi]nds not required for short-terni and medium-tenn operational reasons is to apply such fvnds so a5 to achieve a balance between income generatTron and capital growth oveT the longer terrn, consistent with the degree of risk considered acceptable by the Trustees. A¢¢ordingly, the funds are invested in CCLA'S Charities Investment Fund (COIF) and M & G's Charity Multi Asset Funds which aTe consideTed to provide an adequate spread of risk and an acceptable retun] and are n]onitored regularly by the Finance Committee. Value for money Kendal Almshouse Charity assesses how it is achieving value for money in delivering its purpose and objectives, in accordance with the Tegulator's standard on value for money. This means managing resources economically* effjcientty and effectively to provide qualiry services and homes. The TNstees review target rents, investment perfonnance, expenses and the charity'5 resources while seeking to achieve decent homes standard and maintain the level of service expected by tenants. Value for money metries Kendal Almshouse Charity is a small provider for the purposes of disclosure of the Value foT Money Metrics. Disclosures are as follows.. 2025 2024 2023 2022 2021 Reinvestment % New supply delivered Gearing EBITDA MRI Interest cover Headline Social Housing Cost per unit Operating margin Return on Capital Employed o/ o/ 0/0 8d/. 5800/0 3720/ 3080/0 331% -2860/0 £4,015 £3,370 1470/0 £3,837 £4,535 230/0 £5,033 The Value for Money Metrics are variable as this is a small RSL and any project will affect the ratios more than larger RSLS. Page 6 KEIYDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 ststement of complianee Kendal Almshouse 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 annuaj 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 20 April 2026 and signed on their behalf by., P G Dueksbury Chair Page 7 KENDAL ALMSHOUSE CHARITY TRUSTEES, REPORT FOR THE YEAR EI¥4DED 31 DECEMBER 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Charities Acts and registered social housing legislation require the Trustees to prepare f]nancial statements for each financial year which give a true 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 Trustees are required to: select suitable accounting policies and apply them consistently. make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the f￿ancIal statements. and prepare the fmancial statements on the going concern basis unless it is inappTopriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the fmancial position of the Charity and enable them to ensure that the financial ststements comply with the Charities A¢t 2011, the Housing and Regeneration 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 tsking reasonable steps for the prevention and detection of fraud and other irregularities, Approved by the Trustees on 20 April 2026 and signed on their behalf by: P G Ducksbury Chair Page 8 Independent Auditor's report to Ihe Trustees of Kendal Almshouse Charity Opinion We have audiled the financial statements of Kendal Almshouse Charty foi the year ended 31 December 2025. which comprise the Statement of Comprehensive Income. the StalemenÉ of Changes in Reserves, the Statement of Financial Position and notes to ihe fmancial statements, including si￿LfiCant accounting policies. The fmancial reporting framework thai has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepied Accounting Practice), In our opinion the financial statements: give a true and fair view of the state of the association's affairs as at 31 December 2025, and of its incoming resources and application of resources, includÈng its income and expenditure, for the year then ended. - have been properly prepared An accordance with United Kingdom Generally Accepted Accounting Practice. and - have been prepared in accordance with the requirements of the Charities Act 201 l. the Housing and Regeneration Act 2008 and 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) USAS IUK)) 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 association in a¢cordan¢e with the ethical requirements that are relevant to our audit of the fmancial statements in the UK, including the FRC'S Ethical Standard, and we l)ave fulfilled our other ethical responsibilities in a¢¢ordance with these requirements. We believe that the audit evidence we have obtained is sufficienl and appropriate to provide a basis for our opinion. Conclusions relating to going contern In auditing the financial stalements, M'e have concluded that ihe 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 perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the association's ability to continue as a going concern for a period of at leasl twelve monihs from when the f￿ancial staten)ents are authorised for issue. Our responsibilities and the responsibilities of the board with respect to going concern are described in the relevant section5 of this report. Other information The other inforniation comprises the information included in the Trustees, Report , other ihan the financial statements and our auditor's report thereon. The board are responsible for the other infonnation contained Ivithin the Trustees, Report. Our opinion on the fllMncial statements does not cover the other inforniation and. except to the extent othenvise explicitly stated in our reporL we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other inforniation and, in doing so, consider whether the other iThforn]ation is rnaterially inconsistent with the fmancial statements or our knowledge obtained in the course of the audit. or othenvise appears to be materially misstated. If we idenlify such material inconsistencies or apparent inaterial misstatements, we are required to deterniine whether this gives rise to a material misstatement in the fmancial sLqtements themselves. If, based on the work we have perforn]ed, we conclude that there is a material misstalement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are requir￿ to reporl by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us lo report to you if, in our opinion: the infomJatlOD 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 tbe Trustees of Kendal Almshouse Charity (continued) Matters on which we are required to report by exception continued the fmancial siatethents 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 R¢generation Act 2008 requires us t4) report to you if, in our opinion: a satisfactory system of control over tran5action5 has not been maintained. Responsibilities of the board As explained more fvlly in the board's responsibilities statement set out on page 8, the board members {who are also the trustees of the association for the purposes of charity law) are responsible for the preparation of the financial statements and foi being satisfied that they give a true and fair view, and for such internal control as the board deterniine is necessary to enable the preparation of financial stalements that are free from malerial misstatemenL whether due to fraud or error. In preparing the fu)an¢ial statements, the board is responsible for assessing the association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using ihe going concern basis of accounting unless the board either inlends to liquidate the association or to cease operations, or has no realistic alternative but to do so. Auditor's responsibfilities for the audit of the financial statemenls Our objeclives are to obtain reasonable assurance about whether the fmancial statements as a whole are free from material misstatement, whether due lo fraud or ¢￿0[, 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 exlsts. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these fmancial ststements. ITregularities, including fraud, are instances of non-complian¢e with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. We identified areas of laws and regulalions that could reasonably be expected to have a rnaterial effect on the fmancial statenients from our experience and from discussions with management. We reviewed any related Co￿eSpondence and records of trustee meetings to assess compliance with laws and regulations and discussed the current 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 a managemenl company which reduces the risk of fraud. We assessed the management company's policies and procedures on fraud risks. No instsnces 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 misstatemenls in the financial statements, even though we have properly planned and perfonned our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and Tegulations (irregularities) is from the events and transactions reflected in the fmancial statements, the less likely the inherently limited procedures required by audtting standards would idenlify it. In addition, as with any audit, there remained a hi¥her risk of non-detection 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 cannoi be expected to detecl compliance with all laws and regulations. A fvrther description of OUT responsibilities is available on the Finan¢ial Reporting Council's website at: https:Ilwww.frc.org.uklOur-Work/AudiLIAudit-and-assurancelStandards-and-guidancelStandards-and-guidance-for- auditorslAuditors-responsibilities-for-audiUDescription-of-auditors-responsibilities-for-audit.aspx. This description fonns part of our audilor's report. Page 10 Independent Auditor's report to the Trustees of Kendal Aknishouse Charity (continued) Use of this report This report is made solely to the association's board, as a body, in accordance with Part 4 of the Charlties (Accounts and Reports) Regulations 2008 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we mighi state to the association's board those matters we are required to slaie to them in an auditor's report and for no other PUTpose. To the fullest extent permitted by law, we do not accept or assume responsibilty to anyone other than the association and the association's board as a body, for our audit worK for this report, or for the opinion5 we have fonned. Stables Thompson & Briscoe Statutory Auditor tA>Wther House IA>wther Street Kendal Cumbria LA9 4DX Date: Slables Thompson & Briscoe is eligible lo act as an ouditor in terms ofsection 1212 ofthe Copnpanies Aci 2006. Pagell KENDAL ALMSHOUSE CHARITY ST ATEMEIYT OF COMPREHEI¥4SIVE INCOME (INCLUDING INCOME AND EXPENDITURE) FOR THE YEAR ENDED 31 DECEMBER 2025 Year ended 3111212025 Year ended 3111212024 Notes Turnover Maintsnance contributions from residents Less: losses from voids 262,043 (3,192) 241,443 (6,397) 258,851 235,046 Operating Costs Services Routine maintenance Cyclical maintenance Extraordinary Tepairs Quinquennial reports Management 45,292 20,959 31.797 24,584 15,390 42,000 35.988 26,389 21,810 12.421 41,572 (180,022) (138,180) Other income Donations and wayleave Grant received for Romleigh development 114 113 248,000 114 248,113 Operating Surplu51(Defi¢it) 78,943 344.979 Income from fixed asset investments Interest receivable and similar income Interest and f￿ancing costs Movement in fair value of investments Downward revaluation of housing properties 3,835 1,894 (24,474) 13,454 3,698 2.904 {32,381) 17,928 (526,640) Surplu$/(Deficit) on Ordinary Aclivilies Before Taxation 73,652 (189.512) T￿ation on SUTplus on ordinary activities (n) Surplus l (deficit) for th¢ year 73.652 (189.512) Revaluation of tangible fixed assets 863.000 Total tompreheusive income for the year 73,652 673,488 ancial ststements were approved by the Trustees on 20 April 2026 and signed on their behalf by. JLnL4fv AlolL ksbury Mrs J Hale Trustee Trustee The annexed notes forn] part of these fmancial statements. Page 12 KENDAL ALMSHOUSE CHAIUTY STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 DECEMBER 2025 Property Investment Restricted Endowment Designated Revalu3tion Revaluation Ae¢umul*ted reserves reserves reserves r¢s¢rve rtserve income Total Al 31 De¢¢mb¢r 2023 and l January 2024 59,844 2,024,042 714,290 185,674 224,409 3,208,259 Surplus (deficit) for the year Transfers belween reseryes Revaluation 1.515 16,413 (207,440) (189.512) 83.134 (8.3,134} 863,000 863.000 Total eompreheDsive income 1,515 (83,1341 863.000 16,413 (124,306) 673,488 At 31 December 2024 and l January 2025 61,359 1.940,908 1.577.290 202.087 100.103 3,881,747 Surplus (deficit) for the year Transfers betsveen reserves Revaluation (437) 13.891 60.198 (135,867} 73,652 135,867 Total comprehensive income (437) 135,867 13,891 (75,669) 73,652 At 311)ecember 2025 60,922 2.076.775 1,577,290 215.978 24.434 3,955,399 The annexed notes form part of these financial statement5. Page 13 KENDAL ALMSHOUSE CHARITY STATEMEIYT OF FINANCIAL POSITIOIY AS AT 31 DECEMBER 2025 Notes 3111212025 3111212024 Fixed Assets Tangible fixed assets Investments 3,818,000 266,361 3,818,000 353,905 4,084,361 4,171,905 Current Assets Debtors Bank Current account Bank Deposit accounts 9,841 72.969 156,917 76,227 103,642 190,072 239,727 Creditors Amounts falling due within one year (53,711) (61,616) Net Current Assets 136,361 178,111 Total assets less current liabilities 4,220.722 4,350,016 Creditors Amounts falling due after one year {265,323} (468,269) Total Net Assets 15 £3,955.399 £3,881,747 The Funds of the Charity Pernianent endowment fimds Designated funds Prop¢ny revaluation reserve Investment revaluation reserve Accumulated income reserve io 60.922 2.076,775 1,577,290 215,978 24,434 61,359 1,940,908 1,577.290 202,087 100,103 12 13 14 £3,955.399 £3,881,747 These financial statements We￿ approved by the Trustees on 20 April 2026 si on thcir behalf by: PGDUC Trust¢e Mr5 J Hale Trustee The annexed notes forn] part of these financial statements. Page 14 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31 DECEMBER 2025 Principal Accounting Policies a) Legal status Kendal Almshouse Charity is a Charitable Incorporated Organisation (CIO} registered with the Charity Commission on 22 March 2017 (number l 172208) and is a private registered provider of social housing in the United Kingdom. The Charity constitutes a public benefit entity as defjned by FRS 102. b) Basis of aceounting The financial statements have been prepared in accordance wilh applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102), the Statement of Recommended 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 R¢generdtion Act 2008 and the Charities Act 2011. The fmancial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterlin& which is the tsnctional currency of the Registered Provider, and rounded to the nearest The significant accounting policies applied in the preparation of these fmancial statements are set out below. These policies have been consistently applied to all years presented unless othernvise stated. As a small entity, the Charity is not required to produce a Cash Flow Statement. ) Going concern The trustees consider that there are no material uncertainlies about the Charity's ability to conlinue as a going concern. d) Tangible fixed assets Tangible fixed assets (including social housing properties} are stated al cost or valuation less accumulated depreciation and accumulated impainnent losses as appropriate. Cost includes costs directly attributable to making the asset ¢apable of operating as intended such as the cost of acquiring land and buildings, development costs, interest charges on loans during the developmeni 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 Charity's tangible fixed assets are made up of housing properties which ate principally almshouses some of which were acquired in 1887 aJ)d 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 wa5 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 assets. at rates calculated to write off the cost, less estimated residual value. In the case of fhe housing properties held at valuation, depreciation is considered to be immaterial due to the high residual value and so is not provided. Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually. Page IS KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Principal Accounting Policies (continued) d) Tangible fixed assets (eontinued) As the housing properties are now shown al existing use valuation for social housin& 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 credilors receivable I payable within on¢ year Debtors and creditors with no stated intcrest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaiTment are recognised in the statement of comprehensive income in other administrative expenses. Rights of social landlords to have improvement works carried out to properties by a third paty (such as a local authority) are iecognised as prepayments where payment ha5 o¢¢urrcd in k￿vance of the works being ca￿]ed out and receipts in advance from the same third party recognised as liabilities. Assets and liabilities or income and expenditure are not offset. Investments tnvestments are reCO￿lS¢d initially at cosl. Subsequently, they are measured at fair value through the statement of comprehensive income if the shares are publicly trdded or their fair value can otherwise be measured reliably. Other investments are measured at cosl less impairnient. g) Loans and borrowings Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequenily, they are measured at amortised cost using the effective interest rate method. less Trmpairnient. If an arrangement 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 expenditure is matched against that expenditure by being included in turnover in the income and expenditure account. The related expenditure is included under operating costs. SHG is recognised in the same period as the related expenditure provided the conditions for its receipt have been satisfied and there is Teasonable assurance that the grant will be received. Capitsl grants are shown in liabilities until the project is completed and then released to turnover. i) Provisions Provisions are recognised when the ChaTity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. Provisions for cyclical maintenance or major WOTks to existing stock are not made unless they represent commitments or obligations at the Balanc¢ Sheet date where there is no discretion to avoid or delay the expenditure. Recycled CLWital Granls Fz4nd Capitsl grdnts 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 Communitie5 Agency (HCA) and they are credited to the Recycled Capital Grant Fund within liabilities. Page 16 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL ST ATEMENTS FOR THE YEAR ENDED31 DECEMBER 2025 Principal Accounting Policies {¢ontinued) i) ProvisioDS (CODtinued) In certain circumstances, such as the sale of housing properties, capital grants may be repayable, and, in that event, is subordinated to the repaymenl of other loans by agreement with the Homes and Communities Agency (HCA). It is accounted for as soon as the liability arises within Creditors: Amounts falling due wiihin one year. When any grant to be rpxycled or repaid is less than the grant relating to the disposal, the difference is treated a5 abated grant. Abated capital grants are treated as a component of the surplus or deficit on disposal. j) Turnover and other income Tumover is measured al the fair value of the consideration received or receivable including VAT and net of trade discounts. The policies adopted for the recognition of turnover are as follows: Turnover represents rental and se￿1¢C charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and the Homes and Communities Agency. Prop¢rty MoA&Yged ty Agenls Where the Charity carries the financial risk on property managed by agents, all the income and expenditure arising from the property is included in the Statement of Comprehensive Income. Where the agen¢y carries the financial risk, the Statement of Comprehensive Income includes only that income and expenditure which relates solely to the Charity. Interesl and dividen(£s receivable tnterest income is recognised using the effective interest method and dividend income is Tecognised as the Charity's right lo 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 inCU￿ed. l) Extraordinary Repairs Costs of extraordinary repairs, unless representing capital improvements to the properties, ate charged to the Income and Expenditure Account in the year in which they are incuLTed. m) Value Added TAX Kendal Almshouse Charity is not registered for VAT. In these financial statements, 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 2025 Prineipal Aeeounting Policies (continued) o) Designated and Restrieted Funds General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been desi￿ated for other pury)oses. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fimd is set out in the notes to the fmancial statements. Restrlcted ￿ndS are funds which are to be used in accordance with specific restrictions imposed by donors or which have been Tais¢d by the Charity for particular purposes. The cost5 of raising and adminislering such nds are charged against the spe¢ific fund. The aim and use of each fund is set out in the notes to the fU￿)rIal statements. Endowment funds represent those assets which must be held pernianently by the Charity, principally investtnents. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unre5tri¢ted income. Any capital gains or losses arising on the investments forni part of the fund. Investment managemenl Charges and legal fees relating to the fund are charged against the fund. tnvestment income and gains are allocaled to the appropriate fund. There are three designated funds in these accounts: Property Fund This represents that proportion of the cost of properties which was fmanced by charitable donations and the Charity's own resources. Cyelieal Maintenance Fund This Fund Tepresents amounts set aside for cyclical maintenance to meet Costs in excess 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 and key management personnel remuneration Key management are defmed as the Trustees. None of the Trustees received any emoluments or benefits. Reimbursed expense5 to trustees amounted to £619.53 of which £503.53 were travel expenses, £86 were DBS checks and £30 was a gift voucher. The Trustees have a service agreement wilh H&H Land & Estates who manage the properties on a day to day b&sis. The management fees payable were as follows: 3111212025 3111212024 Management fees £42,000 £41,572 Page 18 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Surplus on Ordinary Activities 3111212025 3111212024 Surplus on ordinary activities is stated after charging.. Auditors, remuneration in their Capacity as Auditors Surplus/(deficit) on fair value movement of investments £7,260 £13,454 £6,350 £17,928 Auditors, remuneration includes £3,654 for preparlng the accounts. 4 Fixed As5cts: Freehold Housing Property Sledall Victoria and Aynam Chapel Nobles Rest Sandes Hospital John Aston Watkins Romleigh and War Total -hfi.pmnri2 Gardens Valuation I January 2025 1.845.000 1,013,000 470,000 250,000 240,000 3,818,000 Transfer (Ijnpairnient) Revaluation Valuation as at 3111212025 £1,845,000 £1.013,000 £470,000 £250,000 £240,000 £3,818,000 The properties were independently valued as ai 31 December 2024 by Edwin Thompson on 17 April 2025. The valuations reflect the almshouse and resid¢n¢y restrictions which equates to existing use value - social housing as required by the Housing SORP 2018. The discount on open market value was between 350/o- 500/0 depending on the property. The properties were all held for letting and represented 42 general housing units. General works to properties amollnled to £77,340 (2024 - £60,620). The original cost of the properties is a mix of the valuation at the time of transfer to the charity and subsequent development WOTk and amounts to £3,582,047 (2024 - £3,582,047) less Social Housing grants of £449,120. Last year the redevelopment of the Romleigh site was completed and was transferred into Freehold Housing Property from Asset in the course of construction in November 2024. This propety was independently re- valued at 31 December 2024 using the same valuation rnethodology (existing use value minus social housing) and as such the valuation has been capped at £240,000. An impairnient of £526,640 was recognised as th¢ difference between historic cost including redevelopment and the value as at 31 December 2024. Page 19 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 3] DECEMBER 2025 Investments Extraordinary Permanent Cyclical Repairs Endowment Maintenance Fund Fund Fund Total Historical cost at l January 2025 46,102 13,714 44,357 104,173 Historical cost at 31 December 2025 £46,102 £13,714 £44,357 £104,173 Market value at l January 2025 Disposals Unrealised surplusl(deficit) 215.069 (100,998) 8,704 61,359 77,477 353,905 (100,998) 13,454 (437) 5.187 Market value at 31 December 2025 £122,775 £60.922 £82,664 £266,361 All the investment5 are placed wlth CCLA'S Charities Invesknent Fund (COIF) and M & G's Charity Mulli Asset Funds. 6 Debtors: Amounts Falling Due Within One Year 3111212025 3111212024 Weekly maintenance contributions Other debtors Prepayments 560 1,477 9,643 8,364 £10,203 £9,841 Creditors: Amounts Falling Due Within One Year 3111212025 3111212024 Trade creditors Bank loan due within one year Grant received for asset in the COUTse of construction Asset in the course of constrnction contracted expenses Accrnals and deferred income 41,130 5.321 45,863 9,153 7,260 6,600 £53,711 £61.616 Page 20 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 8 Creditors: Amounts Falling Due After One Year 3111212025 3111212024 Bank loan due after one year 265,323 468,269 £265,323 £468,269 Th¢ loan is repayabl¢ ov¢r 25 y¢ars, interest only for th¢ r￿St twelve months, with interest Charged at base rate +2.10/0. The loan 15 secured by a legal charge on the freehold housing property at Nobles Rest. Debt analysis Based on the lenders earliest repayment date, borrowings are repayable as follows.. 3111212025 3111212024 Within one yeaT or on demand One year or more but less than two years Two years or more but less than five years Five years or more 5,321 5,321 15,964 244,038 9,153 9,240 27,720 431.309 £270,644 £477,422 Capital grants received The charity has received assistance in renovation projects from the Homes and Community Agency and Westmorland and Furness Council by way of grants which would only be repayable if the 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 been made in these accounts. The amounts involved are as follows.. 3111212025 3111212024 Sleddall Victoria and Aynam Chapel Nobles Rest Sandes H05Pital John Aston Watkins Romleigh and War Memorial Gardens 618.960 115,423 102,197 27.540 282,028 618,960 115,423 102,197 27,540 282,028 £1,146.148 £1,146,148 This does not include grants received shown in Creditors: due within OT]e year. Page 21 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 10 Permanent Endowment Funds Permanent Investment Endowment R¢valualion Fund Fund Total Balance at l January 2025 Unrealised surylus 13,714 47,fv15 (437) 61,359 (437) Balance at 31 December 2025 £13,714 £47,208 £60,922 I l Designated Funds Extraordinary Repain Fund Cyclical Maintenanee Fund Property Fund Total Balance at l January 2025 Trfs (toyfrom Accumulated Income reserve Investment in property Transfer for Decent Homes Standard 1,654,858 172,156 2,758 (100,998) 7,500 113,894 12,329 1.940,908 15,087 105,780 15,000 206,778 7,500 Balance at 31 December 2025 £1,861,636 £81,416 £133,723 £2.076,775 The Property fund represents interna] funds invested in property. The other funds represent funds set aside for future works on property. 12 Property Revaluation Reserve Social Housing Revaluation Reserve Total Balance at l January 2025 Movement in the year 1,577,290 1,577,290 Balance at 31 December 2025 £1,577,290 £1.577,290 13 Investment Revaluation Reserve Extraordinary Repairs Revaluation Cyclical Maintenance Revaluatio Total Balance at l January 2025 Unrealised surplus 168,967 8,704 33.120 5,187 202,087 13,891 Balan¢¢ at 31 December 2025 £177,671 £38,307 £215,978 Page 22 KENDAL ALMSHOUSE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31 DECEMBER 2025 14 Accurnulated Income Reserve Balance at l January 2025 100,103 Surylus for the year excluding movement in fair value of investments 60,198 Transfer froml(to)'. Investtnent in property - loan repayment5 From extraordinary repair fund Designated ￿ndS - extraordinary repair tsnd under spend Designated funds . cyclical mainlenance ￿nd under spend Designated ￿ndS - Decent Homes Standard (206,778) 100,998 (2,758) (12,329) (15,000) (135.867) Balance at 31 December 2025 24,434 15 Analysis of net assets between funds Tangible Fixed Assets Investments Creditors due after one year Total Net Current Assets 3111212025 Pernianent endowment funds Designated fund5 Property revaluation reserve Investment revaluation rcserve Accumulated income reserve 60,922 (10.539) 60,922 2,076,775 1,577,290 215,978 24,434 2.240.710 1.577,290 111,927 (265.323) 215,978 24.434 £3,818,000 £266,361 136,361 (265,323) £3,955,399 The net current liability position is covered by ￿tllre loan drdwdowns and promised grants. Tangible Fixed Assets Investments Creditors due after one year Total Net Current Liability Comparatives: 3111212024 Pernianenl endowment funds Designated funds Property revaluation r¢s¢rv¢ Investment revaluation reserve Accumulated income reserve 61,359 90.459 61,359 1.940.908 1,577,290 202,087 50.103 2.190.710 1.577.290 128.008 (468,269) 202,087 50.103 £3,768,000 £353,905 178,111 (468,269} £3,831,747 Page 23 STABLESTHOMPSON & BRISCOE WWW.Stb-accountants.co.uk Our reference.. HFUKEN120 8 April 2026 The Trustees Kendal Almshouse Charity clo 36 Finkle Street Kendal LA9 4AB Dear Ladies and Gentlemen, Kendal Almshouse Chari ort to Mana ement for the eriod ended 31 December 2025 It is nornial procedure on compl¢tion of our audit work to write to inforn] you of the results of our audit and any findings where we consider that changes should be made to your accounting procedures. The general findin&ys of our audit wcrc ihat the charity's financial transactions had been well controlled and tliai the accounting records had been accurately maintained. There were a number of matters which arose during the course of our audit which we consider should be brought to your attention, or recommendations for possible improvements which could be made. These matters came to light during the course of our norn]al audit tests which are designed to assist us in forming7 our opinion on the financial statements. Our tests may not necessarily disclose all errors or irregularities and should noi be relied upon to do so. However, if any irregularity did come to our ttention during our audit tests, we would, of course, infonn you immediately. We would be grateful if you could enter your comments against each point under the "comments column of ihe memorandum and return it to us in due course. We have complied with the Ethical Siandard 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 thal we wish to draw to your attention, and we confirni that we are independent and able to express an objective opinion on the financial statements. This report has been prepared for the sole use of the trustees of the Kendal Almshouse Charity and with the exception of the Homes and Communities Agency Regulation Committee must not be shown to third parties without our priorconsent. No responsibilities are accept¢d by Stables Thompson & Briscoe towards any party acting or refraining from action as a result of this report. Finally. we would lik¢ to express our thanks to all members of the charity's Staff who assisted us in carying out our work. Yours sincerely Lowiher House, Lowiher SireLJI, KondLII, Cuml)ria LA9 4DX Tel: 1015391720465 Email.. enquiriesCa)sib-accouiilaiils.co.uk Unil 2 7, Cumberland H()use, Kirkhy Stephen Business Park, Si Luke's Road, Kirkby StL'phen, Cumbria C417 4HT Tel..1017683171272 Email: kirkby@sib-accounlanls.co.uk SiiiblL?5Thutni)s1)n & BriscoL. Lid- Regi41erL'(l in Enktrland- CumpLiny numl)oi 1).32I?{1lll Rekjjsii'reil i)fiiiL'. L()wiliL'r Hc)U5L'. L(Jiviher Sireei. Kendiil. Cumbria LA¢1 4DX A li51 c)1 Dirocinr5 is avJil,Ihle Ji Wivw.sih-aLcnunl¥ill15.cn.uVi7boLJI-uOoLJr-direclor5 SIGNIFICA￿ MATTERS RELEVANT TO OUR AUDIT FOR THE YEAR ENDED 31 DECEMBER 2025 Audit approach There were no changes to our audit approach as set out in our meeting with you, POINTS NOTED, IMPLICATIONS AND RECOMMENDATIONS COMMENTS Seven related paty transactions (RVD were identified totalling £619.53. Any reimbursed expenses to t￿￿tee$. however small. need identifying for disclosure in the accounts. There were some invoices dated incorrectly on QuickBooks (United Utility bills in February 2025). This ha5 not impacted the a￿oUnts as they were in the Correct period. however, it is best practiLY to ensure the date is correct. Internal conlrols The purpose of the audit was for us to express an opinion on the financial statements. The audit inGlud¢d consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstsnc¢s, but not for the purpose of expressin8 an opinion on the effectiveness of internal ￿ntrOl. Our audit is, therefore, not designed to identify all control weakn&sses and the matters reported are limited to those defi¢ien¢i¢s that we have identifi¢d during the audit. Summary ofaudlt dlffereneL4 and draft letter of representalloD The totsl unadjusted misstatements identified in our audit work amounted to £662. We have sent a draft letter of management representations required in Lx)nn¢ction with our audit to you separatsly for approval. Anllelpated audlt report We anticipat¢ that we will issue an unmodified audit report for the year. subject to the satisfactory clearance of any outstandinyjunresolved the matters outlinpAI in this report.