Page 1
## **BUTLIN AND ELBOROW HOUSING TRUST A Charitable Incorporated Organisation REGISTERED CHARITY No 1174921**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **INDEX**
Page 1 Trustees Annual Report Page 2 Independent Examiner's Report Page 3 Profit and loss and cash flow statements Page 4 Balance Sheet and movement in reserves Page 5 Cost to the trust of unrecovered withdrawals by the former clerk between 2006 and Feb 2022 Page 6 Notes to the Financial Statements
## **TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31[ST] MARCH 2022**
## **Trustees in the year**
Mr Roger Evans (Chairman) Rev Edmund Newey Mr Paul Smith Mr Adrian Thacker Mrs Ruth Wagstaffe (From 21 Sept 2021)
## **Objects**
The objects of the charity are to provide housing accommodation for poor persons who reside in the Borough of Rugby. Such charitable activity and objectives is commonly referred to as the supply of "Almshouses".
## **Governing Instruments**
The Charity is governed by a constitution dated 2nd October 2017, last amended in April 2018 and is registered as a Charitable Incorporated Organisation
## **Review of the Period**
For almost the whole of the year all of the 12 properties were occupied The Clerk, who had held that position for over 20 years, resigned near the end of the year having confessed to borrowing money from the Charity over a lengthy period. The records of financial dealings were in many cases incomplete but the amount involved has been provisionally calculated as accurately as possible having regard to the information available.
## **Financial Review**
The trustees believe that proper accounting records have been established following the resignation of the former clerk across the year to 31 March 2022. The balance sheet, profit and loss, cash flow and statement of cost associated with the unauthorised cash withdrawals made by the former clerk between 2006 and 2022, fairly reflect the trusts state of affairs as at 31 March 2022, the financial activity across that year then ended and an estimate of the impact of the former clerk’s unauthorised and concealed cash withdrawals, net of the amounts repaid to the trust.
In the last few days another Charity, Lawrence Sheriff Almshouses, has indicated it wants to claim £35,579.41 from the Charity representing money paid to the Charity from Lawrence Sheriff Almshouses by the former Clerk as part repayment of the money he owed. The trustees do not think the claim is legally valid.
Roger Evans
Chairman
Page 2
# **BUTLIN AND ELBOROW HOUSING TRUST A Charitable Incorporated Organisation REGISTERED CHARITY No 1174921**
## **INDEPENDENT EXAMINER'S REPORT**
## **Independent Examiner's Report to the Trustees of the Butlin and Elborow Housing Trust**
I report on the accounts of Butlin and Elborow Housing Trust for the year ended 31st March 2022 as set out on pages 1 - 6
**Basis of Independent Examiner's Repor** is report relates to an independent examination carried out under section 145 of the Charities Act 2011 and the examination has been
conducted in accordance with the Directions given by the Charity Commission. For this financial year of the accounts to which their report relates, This charitable Incorporated organisation does
not require an audit in accordance with Part 16 of the Companies Act 2006.
## **Independent Examiner's Statement**
I have examined the accounting records and the corresponding accounts reported herein and I believe that,
following the resignation of the former clerk and a total cessation of his administration of the trust’s financial affairs:
1. The accounting records of this charitable incorporated organisation, for the year ended 31 March 2022, have been established by the trustees and are in accordance with section 386 of the Companies Act 2006.
2. The unauthorised sale of trust investments and corresponding cash withdrawals by the former clerk across the period 2006 to 2022 have been specifically identified from the underlying bank and investment holding records by the trustees
3. The loss of investment returns due to the unauthorised sale of those investments across the period 2006 to the previous year ended 31 March 2021 is reported as an accounting reserve adjustment during the year ended 31 March 2022. That accounting estimate fairly reflects the dividend yields and capital appreciation of those investments that the trust would have benefited from had those investments not been sold, up to that accounting cut-off date of the 31 March 2021.
4. The accounts accord with the accounting records
5. The accounts are prepared on an accruals basis for a charity and comply with section 396 of the Companies Act and the methods and principles of the applicable SORP.
Iain Richard Smith BA, FCCA.
38 Sandford Way, Dunchurch, Rugby. CV22 6NB
Page 3
**BUTLIN & ELBOROW HOUSING TRUST PROFIT ON ORDINARY CONTINUING OPERATIONS IN THE YEAR ENDING 31 March 2022**
|**ENDING 31 March 2022**|||
|---|---|---|
||**Not**
**e**|**1**|
|Maintenance charges collected on properties let in
the year||47,407|
||||
|Expenses in the year|||
|Utilities|1,307||
|Bank Charges|207||
|Insurance|1,179||
|Annual regulatory fees|1,390||
|Council Property Tax|785||
|Repairs|6,583||
|Charity Bank Loan Interest|8,707||
|Total||20,159|
||||
|Net proft on ordinary continuing operations in the year||27,248|
||||
|**CASH FLOW IN THE YEAR 31 March**
**2022**|||
||||
|Net proft on ordinary continuing operations in the year||27,248|
||||
|Property refurbishment loan repayments in the year|||
|Charity Bank Ltd - 25 years 4.5% above base interest|8,966||
|Almshouse Association - 10 years interest free|9,450||
|Total||(18,416)|
||||
|**Net cash fows from ordinary continuing operations**
**in the year**||**8,833**|
||||
|Unauthorised cash withdrawals by the former clerk|Unauthorised cash withdrawals by the former clerk||46,351
(9,900)
45,284
13,796
(12,729)
1,067
46,351
45,284|46,351
(9,900)
45,284
13,796
(12,729)
1,067
46,351
45,284|
|---|---|---|---|---|
|Withdrawals between April 2021 and February 2022||(14,670)|||
|Amount repaid by the former clerk in the year to 31
March 2022||61,021|||
|Total net recovered in the year to 31 March 2022||**4**|||
||||||
|2019/20 Property renovation cost fnal settlement paid in
the year|||||
||||||
|Total net cash fows during the year to 31 March 2022|||||
||||||
|Net movement in cash balances in the year to 31 March
2022|||||
|Reported Lloyds bank balance as at 01 April 2021|||||
|Lloyds Bank current account March 2021 balance over stated by former
clerk
**4**|||||
|Actual Lloyds Bank balance as at 1 April 2021|||||
||||||
|Closing Lloyds Bank balance as at 31 March 2022|||||
||||||
|Net movement in cash balances in the year to 31
March 2022|||||
||||||
||||||
|Page
4|||||
|**BUTLIN & ELBOROW HOUSING TRUST**|**2022**|||**2021**|
|**BALANCE SHEET 31 March 2022**|**(Restated actuals)**|||**(Report**
**ed)**|
|Fixed Assets|**Note**||||
|Freehold Property at market value 2022 (repaired cost
2021)|1,800,000
**2**|||491,177|
|Less Homes England grants repayable if properties
are sold|(243,423)
**2**|||0|
|Investments|0
**4**|||150,648|
|Total realisable value|1,556,577|||641,825|
|Current Assets|||||
|Debtors|0|||1,984|
|Prepayments|0|||925|
|Investments|0|||1,500|
|Cash at Bank and in Hand|46,351|||13,796|
|Total|46,351|||18,205|
|Long term liabilities - property refurbishment loans|||||
|Charity Bank Ltd - 25 years 4.5% above base interest|231,609||240,574|
|---|---|---|---|
|Almshouse Association - 10 years interest free|47,250||54,000|
|Total|278,859||294,574|
|Council Tax liability||||
|Forperiodsproperties are unoccupied|63,524|**3**|58,029|
|Reported Net Assets|1,260,545||307,427|
|**MOVEMENT ON RESERVES IN THE YEAR**||||
|Reported Net Assets as at 1 April 2021|||307,427|
|Proft on ordinary continuing operations in the year to 31 March 2022|||27,248|
|Restatement of properties from historical repairS cost to current market
value||1,308,82
3||
|Less Homes England grants repayable if properties
are sold||(243,423
)||
|Extra provision for rates liability on properties unoccupied but not being
claimed||(5,495)|??|
|2019/20 Property renovation cost fnal settlement||(9,900)||
|Total accounting restatements to pre 31 March 2021
events|||1,050,0
05|
|Cost of unauthorised withdrawals by the former clerk between 2006 and
**4**||Feb 2022|(124,13
5)|
|Reported Net Assets as at 31 March 2022|||1,260,5
45|
## **Approved by the trustees on 18[TH] January 2023**
**Roger Evans ____Roger Evans______________________ Chairman**
Page 5
## **BUTLIN & ELBOROW HOUSING TRUST**
**Cost to the trust of unrecovered unauthorised withdrawals by the former clerk between 2006 and Feb 2022 See Note 4**
|**See Note 4**||||
|---|---|---|---|
||**To 31 Mar**|**To 31**|**Mar**|
||**2022**|**2021**||
|Unauthorised cash withdrawals by the former||||
|clerk between 2006 and February 2022 largely||||
|funded by the unauthorised and concealed sale||||
|of trust investments|184,715||170,045|
|Falsely reported investment returns for the||||
|period 2006 to March 2021 = Dividends||||
|reinvested and investment unit trust valuation||||
|appreciation, relating to investments the||||
|trustees understood that the trust owned, but||||
|which had been sold by the former clerk.|119,753||119,753|
|Payment made by the clerk personally to the
building contractor for renovation works during
2019/20, thereby concealing the fact that the
investments, which the trustees assumed
existed and could be applied to that work, had
been previously misappropriated by the clerk|(119,312)|(119,312)|
|---|---|---|
|Repayments made by the former clerk in the
year to 31 March 2022|(61,021)||
|Net cost to the trust of the former clerk’s actions|124,135|170,486|
|The above 31 March 2021 cost being concealed at that balance sheet date by way of
the following reported assets|||
|1570 NAACIF accumulation shares on the March
2021 balance sheet that had been sold between
2006 and 2014||150,648|
|Lloyds Bank current account March 2021
balance over stated||12,729|
|Understatement of Almshouse Association Loan||2,700|
|Other trust asset restatements||4,409|
|Total value of trust asset misstatements as at 31
March 2021||170,486|
## Page 6 **BUTLIN & ELBOROW HOUSING TRUST NOTES TO THE ACCOUNTS TO 31 March 2022**
1. The accounts have been drawn up under the historical cost convention with items recognised at cost or accrued transaction value.
The accounts have been prepared in accordance with 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 (FRS102) issued 2019 and the Charities Act 2011
2. To report fairly the ongoing solvency and viability of the charity, the freehold almshouses properties are stated at their estimated market value rather than the historical repairs cost that had accumulated up to the end of the previous accounting year.
The trust has received various grants from Homes England going back as far as 1970 totalling £243,423. These are repayable to Homes England in the event that the trust properties are sold or the trust ceases.
3. The properties’ liability for council tax during periods that they were unoccupied amounts to £63,524. The Council have registered a charge on the properties to protect this liability but have taken no further action recently. The Trustees plan to resolve this in the very near future.
4. In early 2022 it was discovered that the former clerk had been selling trust investments and withdrawing the cash proceeds with other money as what he called a loan. The trustees believe the total cash withdrawals to be £184,715 between 2006 and February 2022. The clerk concealed this activity by -
- falsely reporting that the trust still owned the various investments and cash bank balances within the year end accounts
- -and fabricating an independent examiner’s report thereon.