**Charity registration number 1172390**
## **HUMPHRYS' ALMSHOUSES CIO**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **HUMPHRYS' ALMSHOUSES CIO**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs A Virgo||
|---|---|---|
||Mr K Hobbs||
||Mrs V Forte||
||Mrs Noelle Jones||
||Mrs V Grubb||
||Mr J T Holden||
||Reverend D Renshaw||
||Mr Robin Rogers||
||Mrs D Foan||
||Reverend S Foster|(Appointed 11 February|
|||2021)|
|**Charity number**|1172390||
|**Independent examiner**|John Greaney FCCA||
||3 Carberry Rise||
||7 Leigham Vale Road||
||Southbourne||
||Dorset||
||BH6 3BZ||
|**Accountants**|The Martlet Partnership LLP||
||Martlet House||
||E1, Yeoman Gate||
||Yeoman Way||
||Worthing||
||West Sussex||
||BN13 3QZ||
## **HUMPHRYS' ALMSHOUSES CIO**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8|
|Notes to the financial statements|9 - 17|
## **HUMPHRYS' ALMSHOUSES CIO**
## **TRUSTEES REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution registered 3 April 2017 (as amended by Members' Resolutions dated 14 May 2020 and 13 August 2020), the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity's principal activity for the year is to provide a public benefit from the ownership and management of Humphrys' Almshouses, which provides accommodation for the poor. The trustees ensure the internal and external fabric of the accommodation is well maintained and cared for and kept up to modern day living standards and ensuring whenever work is carried out the Almspeople are not unnecessarily inconvenienced.
The solar panels, which were installed in 2012 at a cost of £25,000, continue to work effectively and are ecofriendly to our local environment. The trustees are satisfied with the investment and their carbon footprint contribution to wider climate change issues.
There are robust procedures in place on health and safety, fire risk management and clear guidelines for the Alms people by way of a residents' handbook.
Bi-annual surveys are conducted with regards to legionella causes, fire safety and health & safety. All aspects of the reports are actioned where necessary as a matter of urgency, even if the recommendation given is low risk. The next surveys are due in 2022 but all health & safety matters are under continuous review by the managing agents and trustees.
Every 5 years the trustees carry out a review of the trusts external providers including those providing administration and bookkeeping. This review will be carried out again in 2022 and 2023
The trustees have designated surplus reserves into an Extraordinary Building Fund, as shown in the notes to the accounts, and we continue to allow for additional emergency costing, as defined in the Charity Operations & Records Examination (C.O.R.E.) Report.
The Charity owns property situated at 50 Grafton Road, Worthing, which it rented out to a third party charity until December 2021 when the lessee vacated the premises. The most recent valuation, carried out in January 2020, as provided by a local firm of Chartered Surveyors, C G Spratt & Son Ltd, was £200,000. The trustees have provisionally decided to convert the property into 2 more almshouses and therefore the property has been reclassified at its book value of £200,000 in the accounts from being treated as an investment property to a tangible fixed asset under construction.
The Charity's residents continue to maintain themselves in an independent way and trustees would only visit them by appointment and invitation by the residents.
The Charity continues its process of diversity by ensuring the trustees are kept up to date on matters relating to Almshouses as well as bi-annual training. The trustees have different areas of knowledge covering finance, accountancy, governance, health & safety, pastoral, management administration and care needs. The Charity became a Charitable Incorporated Organisation (CIO) on 1 July 2018 and the trustees continue to seek to keep the charitable objectives up to date, with the help of the Charity Commissioners’ advice and guidance.
- 1 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees receive outside training to enhance their knowledge and understanding of Charity law, Commissioners' guidelines and law issues. Normally training sessions occur bi-annually, which is especially important for the newly elected trustees. Unfortunately the Covid pandemic meant that the earliest opportunity to reconvene was not until October 2021 when the Trustees had a successful awayday at hired premises in Steyning.
These sessions are provided by legal and charity professionals. Their work included enhancing our Trust Policy document, a long-term plan on charitable incorporation and asset management and a more advanced C.O.R.E (Charities Operations and Records Examination) document and working with the Managing Agent on a robust approach to resident contracts and affordability. Consequently, we can look forward to a more professional trust, but which will also rely on the trustees investing time in robust governance.
There are robust procedures in place regarding health and safety, fire risk management, and clear guidelines for the almspeople by way of a residents' handbook, which has recently been revised and re-issued to the residents.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The trustees have complied with the duty in section 4 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission.
The trustees, with the help of legal advice, produced a motion of amendment to our original trust document regarding the age and sex of potential Almspeople to be accepted by the trust. This move is to allow greater freedom of choice for all and conforms with the Equality Act. The trust constitution was updated accordingly by Members' Resolutions dated 14 May 2020 and 13 August 2020.
Covid-19 restrictions have put on hold plans to redecorate communal areas and replace old stair and floor vinyl with a fire-retardant carpet covering. It is expected the work may well be carried out in 2022, but this is reliant upon relaxation of HM Government restrictions.
The rental part of the weekly maintenance charge (WMC) has been fixed at £114.00 per week for over 10 years and the trustees have no plans to review this figure in the long term. A review was carried out in 2020 and the monthly cost of the utility element was found to be £104.39 per month for flats 1-6 and £63.72 per month for flats 7-8. However the trustees decided to leave the monthly cost as set in 2017 at £50.05 per month for flats 1-6 and £30.99 per month for flats 7-8, with the shortfall being absorbed by the CIO. The CIO will conduct another review in 2022.
The trustees have sought to enhance the Charity to be more robust and efficient. This has been possible by the dedication of the current trustees who have been guided by professional lawyers, accountants and property agents.
The trustees were required, due to a lack of planning consent over twenty years ago, to reinstate a 2 metre area of car park back to its original state. The Managing Agent and Local Authority have worked closely together and concluded, amicably, to a compromise in some aspects. This work was carried out during 2020. The area was reinstated with bushes placed at the entrance of the car park. An area stretching the width of the car park [north to south] and the depth of about 2 metres [east to west] has been re-laid to lawn – all to the satisfaction of the local authority planning department.
- 2 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
At the CIO meeting in July 2021, the trustees discussed the arrangements for the car park:
_”The CIO felt that there needed to be a re-evaluation of how the car park should be used. There has been a sharp increase in the need to park from: carers for the Almspeople, new residents with cars, contractors, family and friends visiting Almspeople, Trustees and Managing Agents and emergency vehicles. The trustees decided unanimously that the rented spaces should be withdrawn from hire”._
As a result at this meeting, the trustees further explained their decision to forgo the revenue from renting out spaces to commercial businesses, as the increased need of the residents, their visitors, and emergency workers and carers is more beneficially aligned to the objects of the charity than any revenue gained previously. The trustees made this decision after considering information from their accountants that this reduction in revenue from both sites should be sustainable in not adversely affecting the financial security of the CIO, but would remain under review as appropriate.
Another trustee has been appointed since the beginning of the year under review temporarily taking the total to 11. The total has reverted to 10 after a subsequent resignation. The number of trustees is enhancing the diversity required to take the Charity well into the 21st century.
## **Financial review**
The surplus for the year, before accounting for gains and losses on investments, as indicated in the Statement of Financial Activities was £7,533 (2020: £9,386).
There was a surplus for the year, after accounting for gains and losses on investments, as shown in the Statement of Financial Activities of £25,874 (2020: £19,909).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees monitor and review the Charity's activities and consider the risks to which it is exposed. As part of this process the trustees maintain a risk management strategy that comprises:
- An annual review of the risks that the charity may face;
- The establishment of systems and procedures to mitigate those risks identified should any of them materialise.
- 3 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Plans for future periods**
The lease on the property situated at 50 Grafton Road expired in December 2021. Legal advice to the CIO confirmed that the property known as Provident House could legitimately be converted from a Permanent Investment Endowment to a Permanent Functional Endowment, to be used as additional Almshouse accommodation, subject to the change of use application being successful. The Trustees discussed the benefit gained financially in renting the property to a business against the benefit in providing further accommodation to additional almspeople. Their conclusion was that, as the principle objects of the charity were to provide for the financially vulnerable, that the benefit and revenue in providing additional homes for almspeople, with the increased benefit of providing, in this case for some who may be disabled, outweighed any sole financial gain in renting the property to a business solely for income, even though this may be greater. However, the trustees agreed to proceed with the project for which the CIO has set aside a budget of £200,000, but due to the changeable situation affecting financial markets and investments, this decision would be reviewed at all stages of planning.
The fabric of the Almshouses is under continuous review. Covid restrictions prevented the periodic surveyors inspection in 2020 but this is planned for 2022. The fabric of the buildings are well maintained and the CIO does not expect high expenditure. There is a possibility the roof will need replacing at 50 Grafton Road. The CIO may well have to replace the tiled roof, which is in a conservation area, at an estimated cost of £50,000. But this will be decided later in 2022 when and if the planning permission is sought and given for the conversion of that property.
## **Structure, governance and management**
The charity is incorporated as a Charitable Incorporated Organisation (CIO) and is a registered charity, number 1172390. It was previously registered as an unincorporated charity (no: 216253). In order to provide more protection to the trustees the CIO was set up in April 2017 and the assets and rights were transferred on 30 June 2018.
The trustees who served during the year and up to the date of signature of the financial statements were: Mrs A Virgo Mr K Hobbs Mrs V Forte Mrs Noelle Jones Mrs V Grubb Reverend G J Daly (Resigned 23 June 2021) Mr J T Holden Reverend D Renshaw Mr Robin Rogers Mrs D Foan Reverend S Foster (Appointed 11 February 2021)
All decisions of the charity are made by the board of trustees who currently plan to meet four times a year. During 2021 there was 1 virtual and 5 in person trustees meetings
The board of trustees must constitute at least five members. When a vacancy arises this will be filled only after full consideration by the board of trustees in order to ensure the appointee will benefit the charity and complement the skills set of the existing trustees.
The only persons eligible to be members of the CIO are its charity trustees. In the event of the CIO being wound up the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
- 4 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **TRUSTEES REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Board are supported in their role by a local firm of accountants who deal with the bookkeeping and bank accounts and who assist the treasurer by preparing financial information for the trustees' meetings.
In circumstances when the trustees require legal charity advice they consult H3 Solicitors Limited, and for other non-charitable advice, Miller Parris Solicitors LLP. For the services of a surveyor they consult with C G Spratt & Son Ltd, who also act as the trust's managing agent. The trustees utilise the services of Mrs J Hobbs as 'Clerk' and she handles all administrative duties and advises on governance, but receives no remuneration.
## **Compliance**
The charity has ensured that it is compliant with the General Data Protection Regulations (GDPR) introduced in May 2018.
The trustees report was approved by the board of trustees.
## **Mr K Hobbs**
Dated: 16 June 2022
- 5 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF HUMPHRYS' ALMSHOUSES CIO**
I report to the trustees on my examination of the financial statements of Humphrys' Almshouses CIO (the charity) for the year ended 31 December 2021.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **John Greaney FCCA**
3 Carberry Rise 7 Leigham Vale Road Southbourne Dorset BH6 3BZ
Dated: .........................
- 6 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Unrestricted Endowment**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Charitable activities
**3**
48,809
-
Investments
**4**
26,642
-
Other income
**5**
2,853
-
**Total income**
78,304
-
**Expenditure on:**
Charitable activities
**6**
70,771
-
Net gains on
investments
**10**
18,341
-
**Net incoming**
**resources before**
**transfers**
25,874
-
Gross transfers between
funds
341
(341)
**Net movement in funds**
26,215
(341)
Fund balances at 1
January 2021
615,281
26,255
**Fund balances at 31**
**December 2021**
641,496
25,914|**Total**
Unrestricted
Endowment
funds
funds
**2021**
2020
2020
**£**
**£**
**£**
48,809
54,781
-
26,642
12,698
-
2,853
2,321
-
78,304
69,800
-
70,771
60,414
-
18,341
10,523
-
25,874
19,909
-
-
341
(341)
25,874
20,250
(341)
641,536
595,031
26,596
667,410
615,281
26,255|Total
2020
**£**
54,781
12,698
2,321|
|---|---|---|
|||69,800|
|||60,414|
|||10,523|
|||19,909
-|
|||19,909
621,627|
|||641,536|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 7 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
Investment properties
**12**
Investments
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets
**Total assets less current liabilities**
**Capital funds**
Endowment funds - general
**Income funds**
Unrestricted funds
Designated funds:
Building fund
**16**
General unrestricted funds
Revaluation reserve|**2021**
**£**
33,982
111,923
145,905
(15,935)
200,000
200,000
157,091
284,405|**£**
270,155
-
267,285
537,440
129,970
667,410
25,914
641,496
667,410|**2020**
**£**
22,793
162,851
185,644
(17,070)
200,000
200,000
147,548
267,733|**£**
47,070
200,000
225,892|
|---|---|---|---|---|
|||||472,962
168,574|
|||||641,536|
|||||26,255
615,281|
|||||641,536|
The financial statements were approved by the trustees on 16 June 2022
Mr K Hobbs **Trustee**
- 8 -
**HUMPHRYS' ALMSHOUSES CIO**
**NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Humphrys' Almshouses CIO is a Charitable Incorporated Organisation (CIO), which was formed on 3 April 2017. On 30 June 2018 the assets (except as referred to in note 11), liabilities and undertaking of the unincorporated charity 'Humphrys' Almshouse' (charity no: 216253) were transferred by formal agreement to the CIO, which until that date had been dormant.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's constitution registered 3 April 2017 (as amended by Members' Resolutions dated 14 May 2020 and 13 August 2020), the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 9 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Income from residents is measured at the fair value of the consideration received or receivable and represents the weekly management charges to residents and parking rent.
## **1.5 Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
·expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
·expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
·other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Almshouses 1% SL Property fittings 15% SL New care line 20% SL
Assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## **1.8 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured using their bid price at the balance sheet date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
- 10 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.10 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.11 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
- 11 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Charitable activities**
||**Unrestricted**|
Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Weekly maintenance charge|46,924|51,781|
|Parking rent|1,885|3,000|
||48,809|54,781|
## **4 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Rental income|11,633|12,500|
|Dilapidations settlement|15,000|-|
|Interest receivable|9|198|
||26,642|12,698|
## **5 Other income**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Solar panel income|2,853|2,321|
- 12 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **6 Charitable activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Depreciation and impairment|7,058|6,671|
|Rates and water|2,381|2,097|
|Light and heat|3,190|4,559|
|Maintenance costs|16,338|12,673|
|Property insurance|4,552|3,501|
|Garden maintenance|1,080|1,860|
|Health and safety|540|960|
|Managing agent's fees|12,299|8,528|
|Cleaning|1,300|1,515|
|Subscriptions|-|182|
|Resident's welfare|450|400|
|Sundry expenses|46|20|
||49,234|42,966|
|Share of support costs (see note 7)|1,766|1,638|
|Share of governance costs (see note 7)|19,771|15,810|
||70,771|60,414|
- 13 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**7**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Bank charges
97
-
Investment manager's
fees
1,669
-
Accountancy
-
3,912
Legal and professional
-
9,899
Trustees' meeting costs
including Awayday
-
2,130
Independent examination
fee
-
400
Bookkeeping and
administration
-
3,430
1,766
19,771
Analysed between
Charitable activities
1,766
19,771|**2021**Support costs Governance
costs
**£**
£
£
97
60
-
1,669
1,578
-
3,912
-
3,924
9,899
-
7,928
2,130
-
118
400
-
400
3,430
-
3,440
21,537
1,638
15,810
21,537
1,638
15,810|2020
£
60
1,578
3,924
7,928
118
400
3,440|
|---|---|---|
|||17,448|
|||17,448|
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **9 Employees**
There were no employees during the year or the preceding year.
## **10 Net gains on investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Revaluation of investments|18,341|10,523|
- 14 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **11 Tangible fixed assets**
|**Almshouses**
**Assets under**
**construction**
**£**
**£**
**Cost**
At 1 January 2021
34,074
-
Additions
-
-
Transfer from investment property
-
200,000
At 31 December 2021
34,074
200,000
**Depreciation and impairment**
At 1 January 2021
7,819
-
Depreciation charged in the year
341
-
At 31 December 2021
8,160
-
**Carrying amount**
At 31 December 2021
25,914
200,000
At 31 December 2020
26,255
-|**Property**
**fittings**
**New care line**
**£**
**£**
98,803
2,982
30,143
-
-
-
128,946
2,982
77,988
2,982
6,717
-
84,705
2,982
44,241
-
20,815
-|**Total**
**£**
135,859
30,143
200,000|
|---|---|---|
|||366,002|
|||88,789
7,058|
|||95,847|
|||270,155|
|||47,070|
The Investment property - 50 Grafton Road was rented out to a third party until the lease expired in December 2021. The trustees have provisionally made a decision to convert the property into two more Almshouses. The property is now transferred to tangible fixed asset as a property under construction at its current value £200,000 .
The charity has chosen not to adopt a policy of revaluation of any class of its tangible fixed assets including the almshouses, and instead continues to include its tangible fixed assets at cost less depreciation, less any provision for impairment. Consequently the net book value of the almshouses would bear very little resemblance to their market value if such a market value was ascertained.
## **12 Investment property**
||**2021**|
|---|---|
||**£**|
|**Fair value**||
|At 1 January 2021|200,000|
|Transfers to tangible fixed assets|(200,000)|
|At 31 December 2021|-|
The investment property comprised of freehold property at 50 Grafton Road. Its fair value had been arrived at on the basis of a valuation carried out in January 2020 by C G Spratt & Son, a local independent firm of chartered surveyors, who also act as the Charity's managing agent but who are otherwise not connected with the charity.
Following the trustees provisional decision to convert the property it has been transferred to tangible fixed asset as a property under construction at its current value £200,000 . It has no cost attributed to it because it was originally donated to the charity.
- 15 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **13 Fixed asset investments**
||**Investment**|
|---|---|
||**funds**|
||**£**|
|**Cost or valuation**||
|At 1 January 2021|225,892|
|Additions|24,721|
|Valuation changes|18,341|
|Management fees|(1,669)|
|At 31 December 2021|267,285|
|**Carrying amount**||
|At 31 December 2021|267,285|
|At 31 December 2020|225,892|
## **Fixed asset investments revalued**
The listed investments are valued using closing bid prices as at 31 December 2021. The historical cost of the investments are £182,880 (2020: £158,159). The excess of the year-end valuation over the historical cost is included in the revaluation reserve and is £84,405 (2020: £67,733.).
## **14 Debtors**
|**Amounts falling due within one year:**
Accounts receivable
Other debtors
Prepayments and accrued income|**2021**
**£**
10,244
8,148
15,590
33,982|2020
£
11,938
6,993
3,862|
|---|---|---|
|||22,793|
## **15 Creditors: amounts falling due within one year**
|Deferred income
Accounts payable
Other creditors
Accruals and deferred income|**2021**
**£**
2,473
8,374
-
5,088
15,935|2020
£
2,893
6,140
4,993
3,044|
|---|---|---|
|||17,070|
- 16 -
## **HUMPHRYS' ALMSHOUSES CIO**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **16 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|||**Movement**||**Movement**||
|---|---|---|---|---|---|
|||**in funds**||**in funds**||
||**Balance at**|**Incoming**|**Balance at**|**Incoming**|**Balance at**|
||**1 January**|**resources**|**1 January**|**resources**|**31**|
||**2020**||**2021**||**December**|
||**£**|**£**|**£**|**£**|**2021**
**£**|
|Building fund|200,000|-|200,000|-|200,000|
||200,000|-|200,000|-|200,000|
The fund is to allow for additional emergency costing, as defined in the Charity Operations & Records Examination (C.O.R.E.) Report.
## **17 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Endowment**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Tangible assets
244,241
25,914
Investment properties
-
-
Investments
267,285
-
Current assets/(liabilities)
129,970
-
641,496
25,914|**Total**
Unrestricted
funds
Endowment
funds
**2021**
2020
2020
**£**
£
£
270,155
20,815
26,255
-
200,000
-
267,285
225,892
-
129,970
168,574
-
667,410
615,281
26,255|Total
2020
£
47,070
200,000
225,892
168,574|
|---|---|---|
|||641,536|
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none).
- 17 -