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2021-03-31-accounts

ST JOHN’S WINCHESTER

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2021

Charity no 1174290 Registered Company no 10903970

ST JOHN’S WINCHESTER

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

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CONTENTS PAGE
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CONTENTS PAGE
TRUSTEES’ ANNUAL REPORT 1 - 14
REPORT OF THE INDEPENDENT AUDITOR 15-17
STATEMENT OF FINANCIAL ACTIVITIES 18
BALANCE SHEET 19
CASH FLOW STATEMENT 20
NOTES TO THE FINANCIAL STATEMENTS 21-31

ST JOHN’S WINCHESTER

THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

1. Reference and Administration Details of the Charity, its Trustees and Advisors

The Charity is registered with the Charity Commission under charity registration number 1174290 and is a company limited by guarantee (with registered company number 10903970) incorporated on 8 August 2017. In this report Charity or the Company means St John’s Winchester. St John’s Winchester is the sole corporate trustee of St John’s Winchester Charity, a linked charity which still holds the beneficial ownership of the Charity’s permanent endowment.

The Charity’s activities are governed by a scheme of the Charity Commissioners dated 14[th] April 1991, as amended, and by articles of association adopted on 8 August 2017. The Charity’s registered office and principal place of business are located at:-

32 St John’s South High Street The Broadway Winchester SO23 9LN

The Board of Directors/Trustees comprises persons who are Appointed Directors (co-opted by the Board or members) and Nominated Directors who are appointed respectively by Winchester City Council and by The Bishop of Winchester. The Directors and Trustees of the Charity who have served during the financial year and up to the date of this report (including those who have retired during the year) are listed below: -

Mr R Bright - Chair Mrs L Bonnin (appointed 14.12.2020) Mr R Brand Mr R Corden Mr C Day Mr P Gubb Mrs E Harrison (retired 08.12.2020) Mrs C Hayward (retired 08.12.2020) Ms K Learney Mr B Moore (appointed 14.12.2020) Ms E McNicholas (appointed 23.03.2021) Mr M Noakes (retired 08.11.2020) Mrs J Rich Mrs S Simmonds (appointed 14.12.2020) Mr M Suffield Mr M Willey

There are currently 13 trustees.

To better manage the affairs of the Charity, the Trustees operate the following four committees whose Chairs report regularly to the main meetings of the Trust Board which in turn take place approximately every quarter: -

AUDIT, RISK AND FINANCE

Mr C Day (Chair) Mr R Bright Mr P Gubb

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

CARE PROVISION

R Bright (Acting Chair)

Mr R Brand Mrs E McNicholas

Mr Bruce Moore Mr M Suffield

GOVERNANCE AND STAFF

Mr R Corden (Chair) Mr C Day Mrs J Rich

PROPERTY MANAGEMENT AND DEVELOPMENT

Mr P Gubb (Chair)

Mrs L Bonnin Mr R Bright Mr M Willey

The senior executive officers of the Charity are as follows: -

Chief Executive: Mr C Cook Head of Care Quality: Mrs S Weekes Finance Director: Mrs E Redmond Investment Property Manager: Mrs S Duxbury Facilities Manager: Mr A Ross

The Chief Executive Officer of the Charity leads the day-to-day management of the Charity reporting to the Chair and Board of Trustees who are responsible for the overall strategic direction of the Charity and ensuring that the Executive implements the agreed strategy and that the Charity’s operations are conducted in the most effective way complying with all laws and regulations in a manner consistent with best practice.

The Charity’s main advisors are as follows: -

Bankers: National Westminster Bank plc
105 High Street, Winchester SO23 9AW
Auditors: Nexia Smith and Williamson
4thFloor Cumberland House
15-17 Cumberland Place
Southampton SO15 2BG
Solicitors: Stone King
13 Queen’s Square
Bath
BA1 2HJ
Property Advisors: Carter Jonas
9a Jewry Street
Winchester SO23 8RZ

ST JOHN’S WINCHESTER

THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

2. Structure, Governance and Management

The Charity is a company limited by guarantee which from a charity law perspective is governed by a Charitable Scheme approved and established by the Charity Commission in 1991 and subsequently amended. The articles of association of the Charity reflect the Scheme.

The Charity’s strategy is determined by the Board of Trustees which meets quarterly. There are four sub-committees of trustees: Audit, Finance and Risk, Care Provision, Governance and Staff, and Property Management and Development. The Trustees of the Charity receive regular reports at these committee meetings from senior executive officers and from the CQC registered managers responsible respectively for the Almshouses and Moorside and from the Service Manager of the Charity’s Hand in Hand service.

The Trustees

The process for appointment of new Trustees is dependent upon whether it is for a Nominated or an Appointed Trustee. One Trustee is currently nominated by Winchester City Council, one by the Bishop of Winchester, and the balance are co-opted by resolution of the Trustees. It is the practice of Winchester City Council to determine at its own cabinet meetings whom to nominate as its Nominated Trustee, and that this person should normally be a serving City Councillor (but not in all cases). It is the Bishop of Winchester’s practice to consult the Charity when exercising his power of nomination of one Trustee.

The conduct and efficacy of the Board is underpinned by a Governance Policy that calls for the appraisal of individual trustees and the appraisal of the Board’s performance as a whole. The Governance Code adopted by the Charity in 2016 reflects the ‘Good Trustee Guide’ and other sources of good governance practice. The Charity is undertaking a Governance Review to ensure, amongst other things, its compliance with the Charity Commission’s Governance Code.

During the year, four new appointments were made to the Trustee Board. These were:

Linda Bonnin, a highly experienced housing professional who is the Head of Land and New Business Development at major regional housing provider, Vivid Homes.

Ellen McNicholas, who is Director of Quality and Board Nurse at West Hampshire Clinical Commissioning Group (CCG) she is also currently heading up the nursing contribution to the Hampshire Test and Trace Service.

Bruce Moore, CEO of National Housing Provider Housing 21. Bruce is dedicated to improving housing and care for older people. His previous roles include CEO of Hanover Housing Group and of Wolverhampton Homes and Deputy Chief Executive of Anchor Trust. He is also a recognised governance expert.

Suzie Simmons has deep expertise in fundraising and is the current Head of Corporate and Fundraising for Naomi House. Her previous roles include Fundraising Manager for Trinity Hospice and Head of Fundraising at Wessex Heartbeat.

The trustees consider that the current Board continues to reflect an appropriate skills mix including, a Chair who was the former Chief Executive of the Crown Estates, a retired head of planning and property investor, a retired property fund manager and investor, a former founder and Chief Executive of a highly successful charity, the Board Nurse for the West Hampshire CCG, CEO of a major social housing provider, Head of Business Development at a major regional housing association , the former CEO of a Hospital Trust, and a successful entrepreneur involved in social care.

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

Newly appointed Trustees receive a detailed induction pack, visit the almshouses, and our Hand in Hand office and are given a tour of many of the properties which make up our investment property portfolio. Comprehensive reporting occurs now on a quarterly basis, with the Trustees being provided with quarterly management accounts and a quarterly CEO report. Trustees of the Charity are invited to training programmes arranged by The Almshouse Association and receive safeguarding, GDPR, Equality and Diversity and other training from a reputable outside provider.

Operational decisions e.g., the hiring of new staff and the management of the Charity’s property portfolio and care operations are delegated to the Senior Management of the Charity, although the Chief Executive will often draw upon the individual expertise and experience of the Chair and other Trustees. Major investments would be determined by the Trustee Board, following advice and recommendations from Senior Management and external advisors. It is the role of the Trustee Board to scrutinise management actions and determine the strategic direction of the Charity.

Key Management Personnel

Key management personnel are defined as the senior management team, comprising of the Chief Executive, Head of Care Quality and Service Development, Finance Director, Facilities Manager and Investment Property Manager. The members of the team are responsible for managing their respective departments.

The remuneration of the senior management team is reviewed by periodic benchmarking, carried out by the Staff and Governance Committee. Remuneration is benchmarked against equivalent positions in the charity and commercial sectors. The members of the senior management team are not directors of the charity.

Residents

Our Residents’ Forum was established in February of 2014 and meets quarterly to provide St John’s almshouse residents with the opportunity to express their views and concerns of both a dayto-day nature and more broadly. The Forum is chaired by a resident, chosen by the Forum. It also provides Senior Management with the opportunity to consult with residents on major initiatives. Usually, the meeting will be attended by at least one trustee. A full residents’ meeting also takes place twice in each calendar year. The pattern of meetings has been impacted by Covid, but the charity is looking to re-institute face to face meetings in a Covid secure manner.

3. Objectives, Public Benefit, Strategy and Fundraising

Objectives

Our objective is to house older people and provide them with the support to live independently, to provide care to those living with dementia and support older people in Winchester. We relieve poverty by the provision of accommodation for those of limited means, but our remit has been broadened by changes to our Scheme in 2016 which allow us to serve older people regardless of their means, including through the provision of accommodation and services; provided adequate provision has been made to serve those without significant means.

Public Benefit

The almshouses, our Moorside care home and to a lesser extent, St John’s Hand in Hand, benefit from significant subsidies which result in a very high standard of care and support. The numbers of residents benefitting vary from year to year but currently there are 81 flats which can accommodate 1 or 2 residents within the almshouses and 31 beds in our St John’s Winchester Moorside care home which sadly is in the process of being closed. Our St Johns Hand in Hand Scheme has received over 300 referrals, and we are currently supporting 36 Hand in Hand scheme members.

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

The aims and objectives of the Charity for the public benefit, as defined by the Charities Act 2011, are pursued. The guidance published by the Charity Commission in respect of the subject of public benefit has been followed. This annual report provides information as to the ways in which public benefit is achieved.

Strategy and future plans

In December 2019 the Board adopted an 8-year plan for the future St John’s. At its heart is a mission to help the older people of Winchester to Live Well. This involves three core goals:

These goals include ambitious plans to build new almshouses and bring meaningful support to those living with dementia in the wider community and their carers and families.

In February 2020 immediately before the start of the financial year, the charity found itself having to respond to the grave threat that Covid-19 presented to our residents and services. As a consequence, we have been highly focused during the reporting year on safeguarding our residents and doing all in our power to mitigate the impacts of the Pandemic by rigorous infection control in both Moorside and the almshouses and by seeking to ensure that our almshouse residents did not catch Covid or become isolated and were fully supported. This endeavour bore fruit, and we were largely successful in keeping Covid to a minimum although Moorside did suffer two Covid-related deaths during this year, with one resident dying in hospital.

In the light of the broad impact of Covid-19 on the Charity and society at large, a review of the Charity’s strategy began in January of 2021 and one of the outcomes of that review has been a decision to close Moorside (that decision was made post year-end). This has been very painful for the residents, their families and staff and the Charity at large. Moorside has been a great success with a strong and consistent reputation for great care.

The review continues and is likely to conclude before the end of calendar year – see our Future Developments.

Fundraising

The Charity receives income from various sources principally, commercial rental income, weekly maintenance charges, care fees and NHS support for its Hand in Hand service. It is not engaged in significant scale pro-active funding raising in recent years, but this will change as the Charity seeks to implement its ambitious plans.

Following the year-end, the Charity has formed a Fundraising Committee whose purpose is to create a fundraising strategy for the Charity to support the expansion of its Hand in Hand services and potentially the development of more almshouses. We expect to conclude this by the end of the 2021/2022 financial year.

The Charity's fundraising activities are administered by employees of the Charity, no third party is acting on the Charity’s behalf. The Charity is a member of the Institute of Fundraising. No complaints were received in the period regarding any fundraising activities. Any fundraising activities are kept under review by the Charity's management to ensure that vulnerable people are not unduly pressured, or activities are unreasonably persistent.

ST JOHN’S WINCHESTER

THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

4. Achievements and Performance

The Charity’s overall short-term objective during the year under review remained the provision of housing, accommodation, care and support for older people in Winchester of the highest possible standard whilst all the time mitigating the effects of the Pandemic.

Almshouses

To support our almshouse residents we employ a welfare team who provide a mix of registered care and welfare support 24 hours a day for 365 days a year which means our community members feel well supported, safe and secure. Our aim is to keep people living independently for as long as possible. In addition to welfare support we employ a therapist, who provides therapeutic massage, yoga and exercise classes. The community support officer provides support for individual residents by spending time with them by helping to ensure that they get the most out of the St John’s community. The Registered Care we offer was ranked as ‘Good’ by the CQC in June of 2019.

Due to the Lockdowns and other Covid-19 restrictions much of the usual community-based activity (normally face to face) could not take place. So, efforts were stepped up to ensure that our residents remained connected with charity staff and each other and did not become socially isolated. These measures included holding church services on zoom and assisting in arranging access to them, increased telephone calls and time to talk, finding volunteers to assist residents with shopping and telephone befriending. More frequent written communication and puzzles and quizzes. Handouts with pictures (of our residents) of exercises that can be done at home or in a chair, yoga leaflets and outdoor and zoom yoga and dance, walking bingo, community together and singing on doorsteps.

Our almshouse community has held together despite Covid through a mix of individual resilience and the great support provided by our almshouse welfare team. With support from our welfare team the residents continue to resume the long-standing community groups wherever possible. The Good Neighbours group, chaired by Anne Manley brings together residents and they support each other when needed. Denis Barret has chaired the residents Forum for many years, and we thank all the residents for their ongoing support for their community. As we move into the future new residents are actively engaged thinking of new ways to shape our community and its future.

In 2016, the Charity adopted a development plan (Option A) to build new almshouses (31 in total on our Colebrook and Chesil sites) and reform 20 of its existing stock on the Southside. The new developments were to take place on our sites on Chesil Street and Colebrook Street. Delays relating to a joint venture impacting the Chesil Street land led to a significant increase in the construction costs making the development uneconomic. In November 2020, contracts were concluded to sell the plot with three separate purchasers for a total sale price of £860,000. One contract completed in the year, and two of the contracts remain to be completed (as contemplated) but are unconditional other than as to the passage of time.

In February 2021, work on the Colebrook development of 15 new almshouses began as projected in our 2019/2020 Annual Report. A delay of some four months to the original timetable occurred as a result of Covid-19. To date the construction works are proceeding to timetable and on budget although as a result in subsequent changes in legislation, we are in discussions with Hampshire Fire Officers which could lead to additional fire prevention/ mitigations costs. It is also now hoped that the Moorside site once vacant (see below St John’s Moorside) can provide a further 18 almshouses and this is dealt with below in ‘Future Plans’ below.

During the year, one more almshouse was reformed to provide wet rooms, level access, and a wheelchair friendly environment. We have now completed reformations of 15 of 20 almshouses that can be reformed. These reformed almshouses have enabled residents to remain in our

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

community for longer with support avoiding the need to move to new accommodation or into care homes.

St John’s Moorside

Moorside dementia home benefitted from a ‘Good’ Care Quality Commission (CQC) rating overall and an Outstanding rating in terms of being ‘Responsive’.

During the Pandemic the management and staff were largely successful in keeping Covid-19 at bay although the Home and families did suffer two deaths which fell within the definition of a ‘Covidrelated death’. We are greatly sorry for the loss suffered by relatives of those who died. We are also grateful that no staff member has, to date, been taken seriously ill with Covid.

During the early stages of the Pandemic huge efforts were made to keep Covid out of the Home. This was done by working hard to capture reliable sources of effective PPE, avoiding the use of agency staff wherever possible because of their potential exposure to the virus in other care homes, and staff and management’s dedication, skill and resilience.

One of the greatest challenges the Home faced was the issue of visiting which at time was not possible under Regulations and guidance, but we did our utmost to facilitate visits for loved ones as safely as possible through window visiting, garden visiting and allotting designated areas in the Home once that was permitted.

Our staff continued to care for residents (and indirectly) their families throughout the Pandemic at considerable personal risk. For this the charity and family members will be forever grateful. A small selection of comments from family members appear below:

‘ Whenever I come to Moorside I can feel the love. I also have no doubt in my mind that Dad is receiving the best care! I am so happy and grateful that he is in such a happy and loving home ’

‘ We always knew that Mum was in safe loving hands, which was especially important during the lockdown and limited or no access at times over the last year. The sure knowledge of the standard of care she received when we could not see her was such a relief to us ’

‘ May I say how much we appreciate the care and compassion you and your wonderful staff give every day to help my Mum and other residents to enjoy their time with you. It must have been stressful and enormously challenging during the last twelve months especially and I can only say a huge thank you to you (our Matron) and your wonderful team ’.

‘ As a family we cannot thank the staff enough for the hard work, dedication and loving care that they provided for my mother and other residents during this very difficult time and for keeping families informed of what was going on throughout the year’

Very sadly, post the fiscal year end, a decision was taken by the Board, subject to consulations, to recommend the closure of Moorside. Following consultations with residents, staff and other stakeholders a final decision was taken to close the Home in June, 2021.

This closure decision was taken largely for financial reasons. The Home has always been subsidised to ensure a level of staffing which would underpin the high level of care provided by St John’s. This subsidy was derived largely from our property investment portfolio and during the year ended 31 March 2021 our net income form our property portfolio dropped by 25% from £1.38m to £1.03m compared to the prior fiscal year.

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

We consider that net income from our property investment portfolio will remain depressed for the foreseeable, resulting in significantly lower funding for Moorside. The Pandemic has increased operating costs and some of those costs are likely to be permanent or at least be incurred for the foreseeable future. On this basis the Home cannot be run on a sustainable financial basis and to continue to run at the current level of subsidy would significantly and materially impact the overall financial position of the Charity in the long term.

The charity now plans to convert the site to almshouses. Please refer to ‘Future Plans’ for more information about the charity’s plans for the Moorside site.

St John’s Hand in Hand

The aim of Hand in Hand is to support older people in the wider community to live independently for as long as possible and to relieve loneliness and social isolation. We have worked in conjunction with the three Doctors’ Surgeries in Central Winchester, St Clements, Friarsgate and St Pauls throughout the year. Those surgeries refer older patients to us who may be experiencing social problems (e.g., loneliness and isolation) which may impact on their health and wellbeing. We employ a Team Manager, Volunteer Coordinator and two Wellbeing Co-ordinators. During the year, the team also provided a clinic-based service within the GP surgeries providing social prescribing and, if required, arranged a home visit under our Hand in Hand service. The surgeries took this service back in-house as part of an overall re-organisation in April 2021 and St John’s working arrangement with them as to the social prescribing clinics came to an end. The primary service continues.

In many cases within the Hand in Hand service we may introduce a volunteer who will befriend the scheme member and help the individual to achieve what they want to achieve. These individuals have been supported by the team to access services and advice by sign posting or by providing volunteer support and befriending. We currently provide more than 20 volunteer hours of support a week.

Covid proved a huge challenge for the Team, who have had to adapt the service delivery as the service was no longer able to carry out home visits. We adapted our training for volunteers to include telephone befriending. Our aim was to ensure that continued support and connection was given to our most isolated scheme members. Some volunteers also supported scheme members by shopping and medication collection/delivery and when allowed, started doorstep visits. More recently the volunteers have been providing a walking support service post Covid to allow members to get out and about again whilst building confidence after long periods of self-isolation.

We also worked alongside GP surgeries in Winchester with contacting patients on their shielding lists. Our Team assessed patients’ circumstances to determine if they had adequate support in place (i.e.) shopping delivery, medication delivery and prescription delivery and, if not, put them in touch with agencies and providers who could advise on emergency groups to assist with certain issues, and create family or friendship support networks. The staff also carried out check in calls to scheme members on a weekly basis. Simple, targeted interventions brought about positive benefits e.g., for a scheme member to stay connected with the community we sourced a Chromebook so she could access the internet. She joined an online Yoga class and various online courses throughout the pandemic. Thus helping to build her confidence and IT skills. Volunteers are a key part of our service.

Some quotes from our Scheme Members appear below:

“Though I was shielding I still felt part of the community”

“ Couldn’t be without my befriender”

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

“Do not know what I would do without my volunteer, we have developed a lovely friendship”

We now plan to expand our service to support those living with dementia and their carers, see our ‘Future Plans’ below.

Charitable Property

Special expenditure on Charitable

During the financial year reported on, a total of £156K was spent on ‘special expenditure’ (maintenance and repair costs not incurred in normal operations) and maintenance in our almshouses and Moorside. This work comprised of roof and wall repairs at Northside and Christes Hospital.

Reformation of Southside Almshouses

To date, a total of 15 almshouses have been substantially reformed to meet the needs of older people by creating level access, wet rooms and other features designed to support independent living for as long as possible. The Charity has expended the sum of £57.5K (1 property) on these reformation efforts in 2020/2021 which make a significant difference to the lives of our residents.

Colebrook Development of New Almshouses

As detailed in the previous Annual Report work began on the Colebrook site (15 new almhouses) in February 2021. Work is presently proceeding to timetable and in budget. Fire safety requirements under new legislation may push up costs beyond the levels of our current contingency sum. The site is directly contiguous to our existing Southside almshouse community, and this will mean that existing almshouse accommodation will now benefit from the lifts in one of the new blocks. We strive to keep our own almshouse residents and impacted residents fully informed in partnership with our contractor Feltham Construction. At present we expect the development to be completed on time in June of 2022.

Investment Property

The Charity benefits from income generated from a property portfolio, the majority of which is located within Winchester City Centre. Consisting of 29 properties (30 properties in the year to 31 March 2020) across all property sectors and providing 53 lettable units the portfolio currently generated a total income of £1.79m in the year (£1.03m net of related expenditure), which is reinvested for the benefit of the Charity.

As a result of the impacts of the Pandemic on our tenant base and on the market in general our gross rental income for the fiscal year dropped to £1.79m as compared to £1.98m for the year ended 31 March 2020, and from £1.38m to £1.03m on a net basis. This 25% reduction in net income has resulted from a mixture of property voids, rent holidays and alternative charging structures such as turnover rents. During this period, we have maintained regular contacts with our tenants to agree rent structures to support them to continue to operate where possible. Whilst we expect the Winchester High Street to prove resilient and the market to improve in due course, the Pandemic has hastened structural changes to the commercial property market, and we expect this reduction in income to prevail for a number of years.

During 2020/21 period we exchanged on the sale of a retail asset in The Square, Winchester, and anticipate completing the sale in late 2021 following the completion of some minor works, this will realise the Charity £610K in sales proceeds.

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

In 2017/2018 the Charity benefited from a legacy of a substantial residential property located in Barnes Close, Winchester. The Charity has now disposed (2021/2022 financial year) of the property on the open market, realising net proceeds of £1.37m.

5. Financial Review

The Charity incurred a net deficit (before realised and unrealised gains on investments) in the year ended 31 March 2021 of £(580)K, compared with a net surplus during 2019/2020 of £135K. The Charity had budgeted for a deficit of £(1,046)K in the fiscal year. The decreased final deficit figure was mainly due to higher investment income from properties than budget as agreements made with some retail tenants were more favourable than anticipated, and the net cost of running Moorside nursing home were lower as we received funding from the Government via the local authority to cover some increase in costs.

Total income decreased by 23% from £4,722K (including profit on disposal of £932K from the sale Devenish House) to £3,639K.

A major proportion of the Charity’s income is derived from its investment in commercial property, consisting of primary and secondary retail units and office premises, mostly in the Winchester area. It is a central objective of the Trustees to optimise the rental income from these properties whilst keeping them in a good state of repair. During the year many of the businesses that occupied these premises could not operate due to the national lockdowns. This resulted in a decrease in income, as vacant premises were difficult to fill, and agreements were reached with some occupiers for reduced or rent-free periods reflecting the financial position of their businesses.

The Charity’s other investments are in unitised funds and cash deposits with an overall strategy of obtaining a reasonable return without incurring high risk. These funds have performed well in the in the year in the year recovering the unrealised loss of £1,809K from the previous year (due largely to the significant impact of the Pandemic on global financial markets), and further growth. As the year-end there was an unrealised gain of £3,041K recorded on these investments. This is an increase in value of 28% against the previous year end value.

However, there was a fall in the property value due to a downward shift in the uncertain commercial property market during and at the end of the year, this totalled an unrealised loss of £(3,514)K (10.2% decrease in the year).

The Charity’s expenditure decreased by 8% to £4,219K (2019/20: £4,587K), there were costs incurred in the previous year of a one off write off £181K for costs incurred on the Chesil Street project that is no longer going ahead. These were professional design and survey fees that were capitalised over several years. The Charity incurred increased costs in the current year in relation to the property portfolio as the bad debt provision was substantial. There were decreased costs for charitable activities as maintenance works on charitable properties were delayed as there was limited access to properties as a result of the pandemic.

The Charity’s total net assets decreased by 2% from £52,659K to £51,606K. This decrease was largely accounted for by the net revaluation of the Charity's commercial property and listed investments, and the deficit incurred the year.

Reserves

As detailed below in plans for future periods, significant investment is expected in both our Charitable and Investment properties. During these periods, deficits and substantial capital expenditure are expected, but upon completion, the projects are expected to enable the Charity to

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

be more financially sustainable in the future. The Trustees draw on designated reserves for extraordinary property repairs, as necessary.

Existing designated reserves are as follows:

Major repairs and rebuilding reserve - investment property : This was established to provide funds for extraordinary property repairs and improvements on investment properties.

Extraordinary repairs reserve - charitable property : This was established to provide funds for extraordinary repairs on the almshouses and nursing homes.

Minibus replacement reserve : This was established to provide fund for a replacement minibus when required.

At the year end the Charity held £16,685K unrestricted reserves, of this £7,212K was designated as detailed above. The remaining unrestricted reserves consist of £6,235K charitable fixed assets and £3,238K accumulated income reserve.

The Charity also held £31K of restricted reserves where the donor of funds has stipulated the use, and £34,890K represent the permanent endowment made to St John’s Winchester Charity (St John’s Winchester is sole corporate trustee), it is included within these financial statements under a linking directive issued by the Charity Commission.

During 2021/2022 the Trustees will review the Charity’s reserves position and set a reserve policy reflecting the funding position after the closure of Moorside and the utilisation of funds on the developments of the Colebrook Street site.

The Trustees monitor the balance between funding the work of the Charity and maintaining necessary reserves for extraordinary expenditure. They remain satisfied that the Charity’s assets attributable to each of its individual funds are available and adequate to fulfil its obligations in relation to those funds.

Investment powers, policy and performance

Monies of the Charity not immediately required for its charitable purposes, and funds held as part of the permanent endowment fund are invested into assets and for a term as the Trustees think fit and suitable in the context of all relevant circumstances of the charity.

The Charity’s invested funds are currently invested in cash and marketable equities. Trustees have adopted an investment policy which is medium risk, investing in cash funds and equities, and to this end has also issued a statement of the Charity’s investment policy, the terms of reference for the investment managers.

The Charity’s investment policy is predicated on the Trustees’ obligation to safeguard its assets.

Trustees consider that the performance of its investment portfolio was in line with its policies and overall global stock market conditions in 2020/21 and against a suitable benchmark for this policy.

In 2021/2022 the Trustees will start a review of the current investment portfolio focusing on the risk profile and asset class balance of investments held.

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THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

Principal risks and uncertainties

A risk management framework is used for the assessment and management of major risks to which the charity is exposed. This framework uses a detailed risk register as the main tool.

For each major risk that is identified a member of the senior management team is assigned responsibility for identifying the steps needed to manage or mitigate the risk. All identified risks are reviewed by the senior management team on a quarterly basis to ensure that any new risks are identified, and that appropriate actions proposed to mitigate or manage risks are being undertaken. The risks are also reviewed and assessed by the Trustees annually and more frequent updates where material changes are identified. Each sub-committee of the Charity reviews relevant sections of the Risk Register on a quarterly basis.

The major risks that the Trustees and senior management team have identified in the relevant financial year include the following:

Going forward it is hoped that the impact of the pandemic will recede, and the major risks that the Trustees and senior management team have identified for the future include the following:

Going concern

After reviewing relevant forecasts and projections, the current level of reserves and future plans, the Board has concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and that it remains appropriate to prepare the financial statements on the going concern basis .

6. Future Plans

Revisiting our Strategic Plan

The Charity agreed a new ambitious Strategic Plan in December 2019, but it’s implementation has been impacted by Covid-19, the fight against, which has been the Charity’s main focus in the reporting year and beyond.

The reduction in our income has resulted in a decision to close our Moorside care home post the year-end. This very sad decision was taken after consultation with relatives of our Moorside residents, staff and other stakeholders and its implementation is ongoing.

The Board is reviewing all elements of our Strategic Plan but during the year ending 31 March 2021 the Board is looking to advance the following key initiatives:

ST JOHN’S WINCHESTER

THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

would benefit from care and support provided by the charity. The aim would be to complete this project by end of 2023.

Statement of Trustees’ Responsibilities

The trustees (who are also directors of St John’s Winchester for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires the trustees to prepare financial statements for each financial year which gives a true and fair view of the state of affairs of the charitable company, and the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ST JOHN’S WINCHESTER

THE TRUSTEES’ ANNUAL REPORT 2020/2021 INCORPORATING A STRATEGIC REPORT

Statement of disclosure of information to the auditor

In so far as the trustees/directors are aware:

Roger Bright

Roger Bright (Nov 1, 2021 10:13 GMT)

ON BEHALF OF THE TRUSTEES

Roger Bright – Chair

Dated 01/11/2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST JOHN’S WINCHESTER

Opinion

We have audited the financial statements of St John’s Winchester (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ Annual Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report contained within the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 13 the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We obtained a general understanding of the charitable company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the charitable company’s industry and regulation.

We understand that the charitable company complies with the framework through:

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the charitable company’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the charitable company:

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

These areas were communicated to the other members of the engagement team not present at the discussion.

The procedures we carried out to gain evidence in the above areas included:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nexia Smith & Williamson

Nexia Smith & Williamson (Nov 1, 2021 14:45 GMT) Julie Mutton Senior Statutory Auditor, for and on behalf of Nexia Smith & Williamson 4th Floor Cumberland House 15-17 Cumberland Place Southampton SO15 2BG

Date 01/11/2021

ST JOHN’S WINCHESTER

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted Endowment Total Total
funds funds funds Funds Funds
Notes 2021 2021 2021 2021 2020
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 4 4 - - 4 5
Income from charitable activities -
housing and care provision
Contributions from charges due 2 1,734 - - 1,734 1,739
Grants - 33 - 33 29
Investments 3 1,821 - - 1,821 2,017
Other income
Profit on disposal of fixed assets 47 - - 47 932
______ ______ ______ ______ _____
Total income and endowments 3,606 33 - 3,639 4,722
Expenditure
Expenditure on raising funds
Cost of managing investments 5 758 - - 758 597
_ __ _ ______ _____
Expenditure on charitable activities
Housing and care provision 6 3,428 33 - 3,461 3,799
Other costs
Loss on disposal of fixed assets - - - - 191
_ _ ______ ______ _____
3,428 33 - 3,461 3,990
_ __ _ ______ _____
Total expenditure 4,186 33 - 4,219 4,587
__ _ _ ______ _____
Net (expenditure)/income before
gains on investments 8 (580) - - (580) 135
Net unrealised gains/(losses)
**on investments ** 10 1,799 - (2,272) (473) (3,754)
______ ______ ______ ______ _____
Net income/(expenditure) 1,219 - (2,272) (1,053) (3,619)
_ _ _ ______ _____
Net movement in funds 1,219 - (2,272) (1,053) (3,619)
Reconciliation of funds
Funds brought forward at 01 April 18 15,466 31 37,162 52,659 56,278
Transfers 18 - - - - -
______ ______ ______ ______ _____
Funds carried forward at 31 March 18 16,685 31 34,890 51,606 52,659
---------- --------- ---------- --------- ---------

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.

Accounting policies and other notes on pages 21-31 form part of these financial statements.

ST JOHN’S WINCHESTER BALANCE SHEET AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible fixed assets
9
Investments
10
Total fixed assets
Current assets
Cash at bank and in hand
Debtors and prepayments
11
Creditors amounts falling due
in one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
13
Total net assets
Funds
Permanent endowment and
associated reserves
Permanent endowment
fund
18
Capital recoupment reserve
18
Investment revaluation reserve
18
Restricted funds
Moorside reserve
18
Hand in Hand reserve
18
Unrestricted funds
Charitable property reserve
18
Other designated reserves
18
Accumulated income reserve
18
Total charity funds		 Unrestricted
Funds
2021
£’000
5,502
10,673
___
16,175
1,173
403
__
1,576
(1,013)
__
563
_
16,738
(53)
_
16,685
=======
-
-
-
_
-
-
-
_
-
6,235
7,212
3,238
_
16,685
_
16,685
=======		 Unrestricted
Funds
2021
£’000
5,502
10,673
___
16,175
1,173
403
__
1,576
(1,013)
__
563
_
16,738
(53)
_
16,685
=======
-
-
-
_
-
-
-
_
-
6,235
7,212
3,238
_
16,685
_
16,685
=======		 Restricted
Funds
2021
£’000
-
-
___
-
31
-
__
31
-
__
31
_
31
-
_
31
=======
-
-
-
_
-
29
2
_
31
-
-
-
_
-
_
31
=======		 Restricted
Funds
2021
£’000
-
-
___
-
31
-
__
31
-
__
31
_
31
-
_
31
=======
-
-
-
_
-
29
2
_
31
-
-
-
_
-
_
31
=======		 Endowment
Funds
2021
£’000
872
34,018
__
34,890
-
-
_
-
-
_
_
-
_
_
34,890
-
_
_
34,890
=======
=
31,043
3,553
294
_
_
34,890
-
-
_
__
-
-
-
-
_
_
-
_
_
34,890
=======
=		 Endowment
Funds
2021
£’000
872
34,018
__
34,890
-
-
_
-
-
_
_
-
_
_
34,890
-
_
_
34,890
=======
=
31,043
3,553
294
_
_
34,890
-
-
_
__
-
-
-
-
_
_
-
_
_
34,890
=======
=		 Total
Funds
2021
£’000
6,374
44,691
______
51,065
1,204
403
______
1,607
(1,013)
______

594
______

51,659
(53)
______

51,606
======
=
31,043
3,553
294
______

34,890
29
2
_

31
6,235
7,212
3,238
______
_
16,685
______
51,606
======
 Total
Funds
2020
£’000
6,109
45,048
______		 Total

___ ___ __

__
__
_
_
=
__
___


=		 __
__
_
_
=

__

_
=		 _
_
_
_
==




==		 _
_
_
_
=

__

_
=		 51,157
2,079
391
__
2,470
(915)
_
1,555

52,712
(53)

52,659
======
34,137
2,765
260

37,162
29
2
__
31
5,938
5,775
3,753
__
15,466
____
52,659
======

The accounting policies and other notes on pages 21-31 form part of these financial statements

01/11/2021

The financial statements were approved by the Trustees on……………….

Roger Bright Roger Bright (Nov 1, 2021 10:13 GMT) ………………………….. Roger Bright- Chair ST JOHN’S WINCHESTER

Christopher Day (Nov 1, 2021 11:52 GMT)

……………………….. Christopher Day- Trustee

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes 2021 2020
£’000 £’000
£’000
£’000
Cash used in operating activities 1 (2,255) (2,430)
-------
_____
Cash flows from investing activities
Investment income 1,821 2,017
Purchase of tangible fixed assets (460) (329)
Purchase of investments (116) (116)
Receipts from the sale of investments - -
Receipts from the sale of fixed assets 135 1,853
-------- --------
Cash provided by investing activities 1,380 3,425
_____ ______
(Decrease)/increase in cash and cash equivalents in the year (875) 995
-------- ---------
Cash and cash equivalents at the beginning of the year 2,079 1,084
______ ______
Total cash and cash equivalents at the end of the year 1,204 2,079
---------- ----------
1.
Reconciliation of net movement in funds to the net cash		 flow from operating activities
Net (expenditure)/income before
gains/(losses) on investments (580) 135
Investment income included in investing activities (1,821) (2,017)
Depreciation charge 107 110
Profit on disposal on the sale of fixed asset (47) (932)
Write off of fixed assets - 191
(Increase)/Decrease in debtors (12) 16
Increase/(Decrease) in short- term creditors 98 67
_ _
Net cash used in operating activities (2,255) (2,430)
----------- -----------

2. Analysis in changes in net debt

Cash and cash equivalents
Cash
Borrowings
Due in more than 1 year
Total		 At 1 April 2020
Cash flows
At 31 March
2021
2,079
(875)
1,204
(53)
-
(53)
(53)
-
(53)
2,026
(875)
1,151

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. PRINCIPAL ACCOUNTING POLICIES

St John’s Winchester ("the Charity") is a private company limited by guarantee and is incorporated in England and Wales; the registered office address is 32 St John’s South, Winchester SO23 9LN and the registered number is 10903970. The company is also a registered charity number 1174290.

The accounts have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102"), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS 102(effective 1 January 2019) (the SORP) and the Companies Act 2006.

(a) Basis of accounting

The accounts include the results of both St John’s Winchester and the Permanent Endowment Fund of St John’s Winchester Charity, which are combined for reporting purposes under the linking direction issued by the Charity Commission on 9 May 2019.

The Charity meets the definition of a public benefit entity under FRS102. Under this definition financial statements are prepared on the historical cost basis of accounting with the exception of the valuation of the freehold investment property and investments.

The accounts are prepared on a going concern basis. The Trustees have carefully reviewed the future prospects of the Charity and its future cash flows and have reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future being at least the next 12 months from the signing of these accounts.

Charitable income represents maintenance contributions receivable in the case of the almshouses, and carehome charges due at Moorside. Income is recognised in the period to which it relates. All income is included in The Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy, except for grants and donations where the donor:

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Charity that a distribution will be made, or when a distribution is received from the estate. Receipt of the legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

.

(c) Fixed Assets

Properties acquired are included in the balance sheet at cost less depreciation. Historic assets i.e. properties constructed prior to 1900 are not included in the balance sheet as their costs, which have been fully written off, are not possible to ascertain. These freehold properties have not been included at a valuation due to the impracticality of such valuation. The Charity's policy is to maintain the properties to a good standard through a continuing programme of refurbishment and maintenance. Depreciation is charged on a straight-line basis over 50 years.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

PRINCIPAL ACCOUNTING POLICIES (Continued)

(ii) Equipment

Equipment and fittings are included in the balance sheet at cost and depreciated at 10%- 20% straight line per annum.

(d) Investments

(i) Investments

Investments are included in the balance sheet at market value. Investment income is recognised in the period to which it relates (property) and when receivable (listed).

(ii) Investment properties

These are included in the balance sheet at the Trustees' valuation based upon professional advice. The surpluses or deficits on revaluation of individual properties are transferred to the permanent endowment fund. Depreciation is not provided in respect of freehold investment properties.

(e) Defined Contribution Pension Schemes

The pension costs charged to the Statement of Financial Activities represent the amount of contributions payable to the schemes in respect of the accounting period.

(f) Charitable property reserve

This capital reserve represents that proportion of the cost of properties, net of depreciation which was financed from the Charity's accumulated income reserve.

(g) Capital recoupment reserves

These reserves represent the recoupment from revenue over an extended period of that proportion of the costs of properties purchased or receiving major improvements in past years which was financed from permanent endowment funds.

(h) Repairs and rebuilding reserves

These reserves represent amounts set aside to carry out future major repairs and rebuilding of charitable and investment properties. The policy for investment in these reserves is the purchasing of units in NAACIF on a quarterly basis.

(i) Value added tax

The Charity was registered for value added tax in July 2005 for the purpose of acquiring the industrial unit in Totton. This is the only property that has been ‘opted to tax’. In these financial statements, where applicable, all other expenditure is shown inclusive of VAT.

(j) Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. PRINCIPAL ACCOUNTING POLICIES (Continued)

(k) Allocation of overhead and support costs

Overhead and support costs relating to charitable activities have been apportioned at 65% and the costs of managing investments at 35%, based on staff time and salaries.

(l) Financial instruments

The Charity has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans and mortgages which are subsequently measured at amortised cost using the effective interest method.

In the application of the charity’s accounting policies, described in the accounting policies above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The Trustees consider that the following are key estimates;

(n) Exemption from preparing consolidated accounts

As permitted under Section 405 of the Companies Act, the charitable company has taken the exemption from the requirement to prepare consolidated financial statements as the exclusion of its subsidiary, St John’s Community Housing Limited, is not material for the purposes of giving a true and fair view.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2
3
4
5
6		 INCOME FROM CHARITABLE ACTIVITIES
Almshouse weekly maintenance charge
Care home fees
Grants community services
_
=
INVESTMENT INCOME
Investment property rental income
Common investment funds
Other income
___
===
INCOME FROM DONATIONS AND LEGACIES
Donations
Legacies
__
===
COST OF MANAGING INVESTMENTS
Professional fees
Property repairs and maintenance
Irrecoverable rent arrears
Support costs
__
===
EXPENDITURE ON CHARITABLE ACTIVITIES
Staff and agency costs
Property and equipment costs
Direct costs
Support costs
Charitable property mortgage
__
===		 2021
£’000
498
1,236
33
_____
1,767
=====
2021
£’000
1,789
30
2
____
1,821
====
2021
£’000
4
-
_____
4
====
2021
£’000
62
216
274
206
_____
758
====
2021
£’000
1,695
722
658
383
3
_____
3,461
====		 2020
£’000
520
1,219
29
_
1,768
=======
2020
£’000
1,980
31
6
_
2,017
=======
2020
£’000
5
-
_
5
======
2020
£’000
76
297
20
204
_
597
=======
2020
£’000
1,696
1,078
644
378
3
_
3,799
=======

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7
8		 SUPPORT AND GOVERNANCE COSTS
Charitable
Investment
Activities
Management
£’000
£’000
Staff costs
268
144
Office equipment and IT
28
15
Legal fees
12
6
Strategic, PR and HR
consultancy
8
5
Repairs and renewals
17
9
Sundries
12
6
Governance
38
21
__
__
___
383
206
========
========
===
Charitable
Investment
Activities
Management
£’000
£’000
Staff costs
277
149
Office equipment and IT
30
16
Legal fees
8
4
Strategic, PR and HR
consultancy
12
8
Office
repairs
and
utilities
17
9
Sundries
9
6
Governance
25
12
__
__
___
378
204
========
========
===
NET INCOME/EXPENDITURE
2021
Surplus is stated after charging-
£’000
Depreciation- tangible fixed assets
107
Auditor’s remuneration (including VAT)
-in their capacity as auditor
14
-other services
-
========
===		 2021
Total
£’000
412
43
18
13
26
18
59
_____
589
=====
2020
Total
£’000
426
46
12
20
26
15
37
_____
582
=====
2020
£’000
110
14
2
=====

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9 TANGIBLE FIXED ASSETS Charitable Equipment Total
Property
£’000 £’000 £’000
Cost or valuation
At 1 April 2020 6,728 660 7,388
Additions 450 10 460
Disposals (91) - (91)
_ _ _
At 31 March 2021 7,087 670 7,757
======= ======= =======
Depreciation
At 1 April 2020 790 489 1,279
Charge for the year 65 42 107
Disposals (3) - (3)
_ _ _
At 31 March 2021 852 531 1,383
======= ======= =======
Net book value at 31 March 2021 6,235 139 6,374
======= ======= =======
Net book value at 31 March 2020 5,938 171 6,109
======= ======= =======
All charitable properties are freehold.
10
INVESTMENTS		 Investment Listed Cash or Total
properties investments Cash
Equivalents
£’000 £’000 £’000 £’000
At 1 April 2020 34,151 10,872 25 45,048
Additions - 116 - 116
Change in market value (3,514) 3,041 - (473)
_ _ __ __
Valuation at 31 March 2021 30,637 14,029 25 44,691
======= ======= ======== =======
Investment Listed Cash or Total
properties investments Cash
Equivalents
£’000 £’000 £’000 £’000
At 1 April 2019 36,096 12,565 25 48,686
Additions - 116 - 116
Change in market value (1,945) (1,809) - (3,754)
_ _ __ __
Valuation at 31 March 2020 34,151 10,872 25 45,048
======= ======= ======== =======

The investment properties form part of the permanent endowment of the Charity and generate the principal revenues with which to finance its charitable activities. The properties have been revalued by the Trustees as at 31 March 2021 after consultation with Carter Jonas.

Subsidiary undertakings

St John’s Community Housing Limited was incorporated on 14 January 2021 and has not traded since its incorporation. St John’s Community Housing Limited was incorporated as a private company limited by guarantee without share capital, incorporated in England & Wales. Its registered office is 32 St. Johns South, The Broadway, Winchester, United Kingdom, SO23 9LN.

At 31 March 2021, St John’s Winchester holds 100% of the voting rights and the power to appoint or remove a majority of the board of directors of St John’s Community Housing Limited hence this constitutes significant control under FRS102 and St John’s Community Housing Limited is therefore considered a 100% subsidiary of the company. The aggregate amount of St John’s Community Housing Limited capital and reserves as at 31 March 2021 was £nil.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11
DEBTORS

Investment property rents
Other debtors and prepayments
____
====
12
CREDITORS: Amounts falling due within one year

Trade creditors
Other creditors
PAYE and other taxes
Accruals and deferred income
____

====
12.b Deferred income (included in note 12)


Balance as at 1 April
Amounts released to investment income
Amounts released to income from charitable activities
Amounts deferred in the year
------
Balance as at 31 March
===		 2021
2020
£’000
£’000
259
272
144
119
____
_
403
391
====
=======
2021
2020
£’000
£’000
172
142
48
53
37
37
756
683
____
_
1,013
915
====
=======
2021
2020
£’000
£’000
515
423
(398)
(378)
(117)
(45)
475
515
--------
----------
475
515
=====
=======

13. CREDITORS: Amounts falling due after more than one year

The loan from The Housing Corporation is secured by charges on the Charity’s housing properties and is repayable in annual instalments with interest rates and final repayment date as follows: -

Housing Corporation -
Final repayment date 30.09.2044		 Interest
Rate
2021
£’000
10.250%
53

----------
--		 2020
£’000
53
--------

14. TRUSTEES’ REMUNERATION AND EXPENSES

The Trustees neither received nor waived any emoluments during the year (2020: Nil). Trustees were reimbursed expenses of £ Nil (2020: £Nil).

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

STAFF COSTS

The average number of employees (both full and part time)
employed by the Charity during the year was
Charitable activities
Management and administration
--

Wages and salaries
Social Security costs
Pension costs
--
=
The number of employees whose emoluments as defined for

taxation purposes amounted to over £60,000 in the year was:
£60,000 - £70,000
Pension contributions paid in respect of higher paid
Employees
15.		 2021
2020
78
76
12
11
--------
----------
90
87
=====
======
£’000
£’000
1,863
1,807
157
152
106
105
--------
----------
2,126
2,064
=====
======
2021
2020
2
1
£’000
£’000
11
5

The Key management personnel of the Charity comprise the trustees, the Chief Executive Officer, Head of Care Quality, Finance Director, Facilities Manager and Investment Property Manager. The total employee benefits (including employers’ national insurance) of the key management personnel of the Charity were £300,465 (short term benefits £280,332, long term benefits £20,133) (2020: £ 294,559 (short term £ 274,821, long term benefits £19,738)).

All pension costs are charged against unrestricted funds.

16. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Capital commitments at the balance sheet date totalled £4,171,659, this is a contract with Feltham Construction Limited for the renovation and build of 15 new almshouses at 108 Colebrook Street, Winchester (2020: Nil).

17 . TAXATION STATUS

St John’s Winchester is a registered charity whose income is generally exempt from liability to corporation tax by virtue of its charitable objectives and activities. As explained in Note 1 (i), the charity is unable to recover the majority of VAT charged on purchases of goods and services.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18 STATEMENT OF FUNDS
At 1 April
Income
Expenditure
Investment
Transfers
At 31 March
2020
gains/(loss)
2021
£’000
£’000
£’000
£’000
£’000
£’000
Unrestricted funds
Charitable property
reserve
5,938
-
-
-
297
6,235
Minibus replacement
reserve
31
-
-
-
-
31
Major repairs and rebuilding reserve-
Investment property
3,448
-
-
988
59
4,495
Extraordinary repairs reserve-
charitable property
2,296
-
-
660
(270)
2,686
Accumulated income
reserve
3,753
3,608
(4,186)
156
(91)
3,238
_
_
_
_
_
_
15,466
3,606
(4,186)
1,804
(5)
16,685
=======
=====
=======
=======
=======
=======
Restricted funds
Donations Moorside
29
-
-
-
-
29
Donations Hand in Hand
2
-
-
-
-
2
Grant- Hand in Hand
-
33
(33)
-
-
-
_

_
_
_
_
Total restricted funds
31
33
(33)
-
-
31
=======
=====
=======
=======
=======
=======
Endowment funds
Permanent endowment
funds
34,137
-
-
(3,099)
5
31,043
Investment revaluation
reserve
260
-
-
34
-
294
Capital recoupment
reserves
2,765
-
-
788
-
3,553
_

_
______
__
_
Total endowment funds
37,162
-
-
(2,277)
5
34,890
=======
=====
=======
========
========
=======
Total funds
52,659
3,639
(4,219)
(473)
-
51,606
=======
=====
=======
=======
=======
=======

Funds

Unrestricted funds comprise of those funds with the Trustees are free to use in accordance with the charitable activities.

Charitable property fund represents the net book value of charitable property held as fixed assets.

Designated funds

Major repairs and rebuilding reserve- investment property: This was established to provide funds for extraordinary property repairs and improvements on investment properties.

Extraordinary repairs reserve- charitable property: This was established to provide funds for extraordinary repairs on the almshouses and nursing homes.

Minibus replacement reserve: This was established to provide fund for a replacement minibus when required.

The Endowment Fund represents those assets which must be held permanently by the Charity, principally investment properties. Income arising on the endowment fund can be used in accordance with the objectives of the Charity and is included as unrestricted income. Any gains or losses arising on the investments form part of the fund.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. FINANCIAL INSTRUMENTS

Financial instruments measures at fair value

Financial instruments measures at fair value
2021 2020
£’000 £’000
Investments measured at fair value 44,691 45,048
====== ======

20. RELATED PARTY TRANSACTIONS

The charity has a working relationship with Winchester City Council (“WCC”) and the Council has the right to nominate 2 of our trustees (see the Trustees’ Annual Report). During the year there was 1 trustee nominated by the Council, Kelsie Learney.

During the year £90,271 (2020: £60,881) of payments were made to WCC for the payment of council tax and planning fees. All of these conducted on an arm’s length basis based upon standard charges levied by way of a set calculation by WCC

Details of compensation payable to key management is disclosed in note 15.

21. POST BALANCE SHEET EVENTS

At a Board meeting on 27 April 2021 a proposal was made to close Moorside Nursing Home which is operated by the Charity. After consultation the Board approved this proposal on 14 June. It is anticipated that the home will close by 30 September 2021. Due to the uncertainty of the timing of the re housing current residents it is not possible to make a reliable estimate on the financial impact on the Charity.

ST. JOHN’S WINCHESTER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

Unrestricted Restricted Endowment Total Total
funds funds funds Funds Funds
Notes 2020 2020 2020 2020 2019
£’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 4 1 4 - 5 114
Income from charitable activities -
housing and care provision
Contributions from charges due 2 1,739 - - 1,739 1,593
Grants - 29 - 29 -
Investments 3 2,017 - - 2,017 1,950
Other income
Profit on disposal of fixed assets 932 - - 932 -
______ ______ ______ ______ _____
Total income and endowments 4,689 33 - 4,722 3,657
Expenditure
Expenditure on raising funds
Cost of managing investments 5 597 - - 597 629
_ __ _ ______ _____
Expenditure on charitable activities
Housing and care provision 6 3,770 29 - 3,799 3,382
Other costs 6
Loss on disposal of fixed assets 191 - - 191 -
_ _ ______ ______ _____
3,961 29 - 3,990 3,382
_ __ _ ______ _____
Total expenditure 4,558 29 - 4,587 4,011
__ _ _ ______ _____
Net income/ (expenditure) before
gains on investments 8 131 4 - 135 (354)
Net unrealised (losses) on
investments 10 (1,097) - (2,657) (3,754) (448)
______ ______ ______ ______ _____
Net (expenditure)/ income (966) 4 (2,657) (3,619) (802)
_ _ _ ______ _____
Net movement in funds (966) 4 (2,657) (3,619) (802)
Reconciliation of funds
Funds brought forward at 01 April 18 16,432 27 39,819 56,278 57,080
Transfers 18 - - - - -
______ ______ ______ ______ _____
Funds carried forward at 31 March 18 15,466 31 37,162 52,659 56,278
---------- --------- ---------- --------- ---------