REGISTERED CHARITY NUMBER: 1175027 Report of the Trt00$ and Unaudltsd Flnanclal Statsmonts for the Year Ended 31 December 2023 THE BERROW GOTTAGE HOMES KNOX CROPPER
THE BERROW COAGE HOWIES Contents of the Flnanclal Ststements for thg Yoar Endod 31 December 2023 Page Rfrference and Admlnlstratlve Detalls Roport of tho Trustees Indapendont Examln•r'8 Report statèment of Flnanclal Actlvltlos Balance Sh•et 10 Notss to the Flnanclal Statements 11 to 21 D•talled Statoment of Flnanclal Actlvltles 22 to 23
ThE BERROW COTTAGE HOMES Roferencg and Admlnlstrallve Detall8 for the Year Ended 34 December 2023 TRUSTEES N J Cameron Chairman {appoinled 23.5.23) T J Corns Dr J A Hagon VIGe Chairman (appointed 23.5.23) Mrs J Hogg Mrs C Lewthwaile R WPill C E Pontifex A.C.A Treasurer Mrs E M Wilkin D Whiling Rev G Lanham Ex-Offi¢lo Trustee PRINCIPAL ADDRESS Mary Galloway House 2 Kenilworth Road Knowle Solihull West Midlanés B93 OJA REGISTERED CHARITY NUMBER 1175027 INDEPENDENT EXAMINER Knox crOpr LLP Chartgred Accountants Office Suite 1 Haslemere Hous8 Lower Street Haslemere Surrey GU27 2PE SOLICITORS Standley & Co 1612-1618 High Street Knowle Solihull Wesl Midland8 893 OJU BANKER8 Barclays Bank plG 19-21 Mell Square Mill Lane Solihull Wesl Midland5 B913AR Page 1
ThE BERROW COThAGE HOMES Report of the Truste•s for tho Year Ended 31 Doogmber 2023 The trustees preser)I their report wlth the financial statements of the charlty for the year ended 31 Drnber 2023. The trustees have adopted the provisions of Arxounlin9 and Reporting by Charities.. statement of ReGommenéed Practice applicable to charf(ies preparing their accounts in accordance with the Financial Reportlng Standard applicable in th8 UK and Republic of Ireland IFRS 102) leffeclive 1 January 2019). OBJECTIVES AND ACTIVITIES Objectlvos and alms The Charity exists to maintaln and manage 30 almshouses lincludlng 1 cKcupied by the warden} in its ownership for the benefit and welfare of people in need of housing provlsion, princlpally in the village of Knowle and the surrounding areas, in accordan with the orlginal Trust deed, Slgniflcanl a¢tlvltles The trustees have the objodlve8 of keeplng all the properties and gardens in good ¢ondltion, Iher8by providing a comfortable and safe environment for each resident., complying with the Decent Homos Standards and ensuring that the properties are in demand. To achieve this stated objectlve, plans were devised to further upgrade the Vlctorian Cottages, and in so doing improve their EPC ratings. Other aims for the year were lo continue rèviewing and updating the pollcies of the trust to ensure that they reflect best practice,. to review the risk assessments for the trust., to continue to mpnlior the wellbeing of the residents and to mitigate against the effects of the rising Bank Base Rate and other cost of Ilving pressures on the finan¢es of the charity. Publlc beneflt The charity provldes public benefit by providing social housing by way of Almshouses lo those who are unable lo afford commercial rent5. By being in close contact with these individuals the charity can ensure thelr health and wellbeing Is prolecled. Grantmaklng It is not the policy of the Trustees to make grants. ACHIEVEMENT AND PERFORMANCE harltablè actlvltle8 During the year. the planning ¢ontinued on upgrading the Victorian Cottages and a contract was entered into for the replacement of their bay windows to increase the 18vels of insulation, and improve their energy gfficiency. The process of reviewing the trusl's policies and its risks was continued. Preparations were mad8 for the repayment of the bank loans. on their Tepayment dale, resulting in expenditure being carefully controlled, which together with htgh levels of propety oc¢upancy led lo improved cash generation. A tenanvs satisfaction survey was undertaken, as requi by the Regulator of Social Housing, the results of which showed high levels of tenant satisfaction. Page 2
ThE BERROW corrAGE HOMES Report of the Trust99$ for the Year Ended 31 Doc•mb8r 2023 FINANCIAL REVIEW Flnanclal po8ltlo Turnover from Social Housin9 1otJngs increased by £18,311 to £176,863 compared lo last year (2022.. £158,552) as a result of increased Weekly Maintenance Charges and the reduGlion In voids throughout the year. Operating expenditure has been well monitored in the year Charitable Aclivty costs have decreased by £10,562 to £117,958 12022.. £128,520) due to.. al £3,815 decreased losses on the sale of tangible asse15', b) £1,585 decreased In Lighting and heat., cl £3,844 decreased in Propety repalrs,and dl £1,513 decreased in Grounds Mainlenanco, Support Costs have increased by £989 to £18,14912022'. £17,160). The net Income from charitable activrties, reported at £64,460, includes galns on investments amounting lo £10,288, compared lo the reported £25.162 losses on investments in 2022. Interest payable on loans totalled £15,848, a decrease from £22,271 In 2022. Inveslment income has de¢re8sed by £11,380 10 £21.002 {2022'. £32,382) as a result of the 2022 investmenl disposals. Therefore, the Balance Sheet Indicates an in¢rease in reserve5 of £64,460, reflecting the net income for the year. This compTises a surplus on unreslricled funds amounting to £81.061 and a deficit on restricted funds of £16,601, which represents the depreCIaan charge released against the social housing grant InVtment poll¢y and oble¢tlvo8 The investments are managed by the Trustees who have opted to invest In Accumulation shares of the M&G Chadty Mulli Asset Fund. Reserves pollcy The National A$socialion of Almshouses require sufficient sums lo be sel aside as investments lo generate necessary funds mainly for the maintenanc8 and repairs of the Almshouses-. this is achieved by selling aside annually the amunl advised by them. Accumulation Fund dividends are allowed to ac¢umulate in the reserves unless reqUId for exceptional expenditure. Total Unrestrlcted Reserves of the Charity amount to £1,892,315 of which £1.366,600 have been designated. £124,138 relates to the Investment Revaluation Reserve and £401,577 comprises the Income and Expenditure Account, Restricted Reserves amount to £753,682 and represent social housing granls re1Ve1 net of the depreclatSon element of the housing properti85 fvnded by the grants. Details of these reserves are sel out in Note 18 to the Flnancial Statements. FUTURE PLANS These will be to ensure that the Almshouses continue lo be well maintalned and In so doing provide comfortable a¢commod81ion for the r8sid8nts. Plans are being drawn up for further improvements to the Victorian Properties, which will further enhance their energy efficiency. The trustees Intend lo continue to maintain an enhand level of tenant involvem8nt, by conllnuing to adopt the National Regulator of Social Housing Tenant Satisfaction Surveys. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng docum8Dt The Charity is a Charitable Incorporated Organisation (CIO) and is controlled by ils governlng document, the foundation registered on 9th October 2017, and as amended on 1 sl February 2018 and 4th June 2018. The CIO'S Registered Number is 1175027 and It is also regulated by the Regulator of Social Housing15051}. Page 3
THE BERROW corrAGE HOMES Report of the Trustees for the Year Ended 31 Do¢¢mber 2023 STRUCTURE. GOVERNANCE AND MANAGEMENT Re¢rultment and appointmont of new tru5to&8 Trustees are recruited as required with the aim of havlng a Board of Trustees with a range of relevant skills and experience. New Trustees are inducted. by the Board and are able to attend urSeS run by the Almshouse Association an(1 others. Organlsatlonal structure The Board of Trustees met four limes in 2023 to delermlne slralegy and policy and they employ a Warden and Clerk to ensure that residents, needs are met and that the in¢ome and expenditure of the Charty is managed effieienlly. Trustees seNe on Sub committees including Heallh and Safety, Finance. Buildings, Residents, Selection, Residents, Welfare and Fundraising in order lo facilitate day-to-day management and sldents, welfare issues. The Warden is available to offer reasonable non nursing assistance to frail residents and liaise with Social Services to ensure that r8sidents are able to mainlaln Sndependenl residence until they require full lime resldenlial Care. The Clerk to the Trustees prtpares monthly cumulatwe cash accounts and cumulative s18tem8nls of contributions due from residents together with a reconciliation lo the bank balances. These are scrulinised by the Treasurer who prepares an annual budget and provides performance reports for each meetlng of the Truste85. The bank mandate requires 8Uthorised porsons for all payments. InsuranrR and Risks are reviewed annually. The Trustees also confirm that they have had regard for th8 Charity Commlssion guidance in respect of public benefit when reviewing the charity's alms and objectives and planning future activities, Codo of Govomance The code of govemance adopted by the Trustees is the Charity Governance Code for Smaller Charities, as thls best fils with the aims and objectives of The Berrow Cotlage Homes as an Almshouse Charity and represents a standard of good governance practice to whh all Gharilies should aspire. The Board of Trustees confi'rms compliance with the Govemance and Flnanaial Viability Standard. In doing so, the Board confirms that it has an appropriate, robust and prudent business plannlng, risk and control framework in place. R18k managemènt The Trustees have glven conslderalron to the major risks to which the charity Is exposed and have reviewed the established systems and procedures to manage these risks and to ensure appropriate controls are in place to provlde reasonable assurance against fraud end error. The Board's focus In the year was on the below prin¢ipal risks.. Malnlainin Pro erties to Decent Homes ar Reports are made lo the Board and each meeting lo ensure all prop8rtie5 and inspections are up lo date. A pro9ramme of works is in plaGe for Gomponent replacements. Mainlainin ood ervice levels to resi The Beirow Cottage Homes adopts an open forum of communication beeBn residents and key management personnel. During the year resldenls continued to be more involved with the operations of the Charity and the welfare of fgllow residents . by providing key feedback to the Trustees at their regular visits and through a Regulator of Houslng residents, satisfaction survey. EffectSve mana ement of the Chari 's resources The Board continue to monitor the Charity's resources and partUlarlY its ffinances ghfen Ihe economic uncertainties currenlty impacting the cost of living for the residents and the charity in maintaining the properties. Glven the investments held by the charity, the Trustees arg ¢onfidenl that the charity is able lo continue dellverlng its obledives. Page 4
THE BERROW corrAGE HOMES Report of tho Trustoes fortha Year Ended 31 December2023 VALUE FOR MONEY {VFMI Each year the Charity uses a range of data to measure VFM progress against the housing sector. The results he5p influence investment de¢isions and provide the gulatOrS and other 51akeholders with information on the progress of the Charity, whilst also 8nsurlng compliance with the regvlatory VFM standard. The metrics have been CoMpad to to the Acuity smaller provider8 2022123 re5uits. Metrlc 2023 2022 Aculty S¢orecard Commgntsry 0% Th8 Charity has 30 Almshouses in management. This remains as per the previoLfS year, with no new supply of social or non-social housing. New suppty delivered 0% Gearing 7.17¥ 5,12% 13.24% The Charity's gearing is below industy median refi8cllng a lower reliance on exlemal borrowings for the funding of ils housing propertles EBITDA MRI 699,48% {197.89%1 168%The metrtc highllghls a $1gnrfTrl improvement in the organisalion's operational performance and finanal health. Th8 decrease in capital expenditure in 2023, conlrasled wlth the expenditure on the roof works of Victorian Cottages in 2022, ha5 positively InfluenGed E81TDA. Similarly. the reduction in voids throughout the year and overall improvements in cost management have also contributed positively to this outcome, Social Housing Cost Per Unit £3.072 £6,688 £5,395 Lower voids compared to 2022 and sower capilalised costs reflect the decrease of Social Housing Costs per unil in he year. Operakn'ng Margin Overall 26.290 18.76% 13.34Vo The operating margin increase indicates that The Berrow Collage Homes became more profitable relative lo ils revenue in 2023 compared to 2022 and has outperformed the industry Benchmark. 13.21% The operating Social Housing Lettings in the year Is due to lower voids COMpad lo 2022 and decrease in repair costs. Thi$ significant increasg in operating margin from 2022 to 2023 indi¢ate$ enhanced efficiency and cost management within tle Social Housing lettings sector. Social Housing Letting8 only 21.66% 6.70% PaJe 5
ThE BERROW COThAGE HOMES Report of the Tru8te88 for the Yoar Ended 31 Decembgr 2023 ROCE 2.020 1.20% 1.86tl/o ROCE'S increase in the year indicates that The Berrow Collage Homes generated more profit relative lo the Gapital employed In its operations durlng 2023. Additionally, the reported 2.02111• ROCE exceed5 the industry average of 1.86%. suggesting that it 18 performing relatNely well Gompared lo its industry peers in terms o capitsl effKiency and prolitabillty. Reinvestment 0,02% 3.92% 3.7% The reported decrease reinvestment can be attributeé lo the decrease in capital expenditure during the year. In 2022, there was significant capital expenditure associated with the finalisation of the roof works of Victorian Cottsges Overall. these key performance indicators refl8Gt the results for the year ended 31st Dember 2023 in comparison to the industry se¢lor scoreGard, demonstrating financial strength and robust asset management. STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financial slalemenls in accordance wllh applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. The law applicable lo charities in England and Wales. the Chariues Act 2011, Charity {Accounls and Rewrts} Regulations 2008 and the provisions of the trust deed requires the Irustees to prepare financlal slalements for each financial y8ar which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the ItOme and expenditure, of the charity for that period. In preparing those financial statements. the trustees are required lo select suitable accountin9 policles and then apply them ¢onslstently: - observe the methods and princlples in the Charity SORP.. - make judg8ments and eslimales that are reasonable and prudent., prepare th8 fi'nancial stalemenls on the going concern basis unless il Is Inappropriate to presume Ihal Ihe harity wlll contlnue In business. The trustees S responsible for keeping proper accountlng records which disclose with reasonable aUraCY at any time the ffinan¢lal position of the charity and to enable them lo ensure Ihal the financial slalements compty with the Charities A¢1 2011, the Charity (Accounts and Reports) Regulations 2008, the Housing and Regeneration Act 2008, the AcGounling Dlreclion for Private Registered Providors of Social Housing 2022, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitles. The trustees are responsible for the maintenance and integrity of the charity and financial infomiation included on the charity's website. Legislation in th8 United Kingdom governing the preparation and dissemination of finan¢ial statement5 may differ from legislation in olher jurisdlctions. Page 6
E BERROW COThAGE HOMES Report of the Trustees for the Year Ended 31 December 2023 INDEPENDENT EXAMINER The Independent Examiner has expressed hls wllllngness to contlnue Sn offlce and a proposal for his reappolntment wll be put before the Trustees at their meeting. Approved by order of the board of trustees on 21 May 2024 and slgned on 51$ behall by.. N J Cameron Vrrustee Page 7
lridopondonl Examlngr's Report to the Trusto0$ of Tho Borrow Cottage Homes Indèpgndent examlnerfs report to the truslBeS of Th¢ Borrow Cottagg Homes I report to the charity trustees on my exarnination of the accounts of The Berrow Cottage Homes Ilhe Trust) for the year ended 31 December 2023. This report is made to the Trustees, as a kndy, in accordance with the terms of my engagement. Our work has been undertaken so that we might carry out an Independent Examination of the financial statements in )rdance with the General Directions given by the Charity Commissioners. To the fullest exlenl permitted law, we do not accept or assLtme re¥)onsibility to anyone other than the Charity and the Charlty's Trustees, as a body, for our work or for this report. Responslbilltles and basls of report As the charlty trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 {'the Act'l. Having satisf myself that the accounts of the Charity are not required to be audited under Se¢tion 136131 of the Housing and Regeneration Act 2008, an independent examination has been Carried out. I report in respect of my examlnatlon of the Trusl's accounts carried oul under section 145 of the Act and in carrying out my examination I have followed all applicable Dlreclions given by the Charity Commission under section 14q5llbl of the Act. Indopondont examlnor's statemont I have completed my examInal. l confirm that no material matters have Come to my allenlion in connection with the examinalion giving nE ¢au$e to believe that in any material respect: 1, accountlng records were not kept in respect of the Trust as required by section 130 of the Act., or section 135{2lla} of the Housing and Regeneration Act 2008., or 2. the aKounts do not accord wlh those records.. or 3. the accounts do not comply with the applicablg requirements concerning the form and content of 8ccounts set out in thg Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true ar fair which is not a matter considered as part ol an Independent examination. I have no concerns and have come across no other matters in connectlon with the examination to which allenlion should be drawn in this report in order to enable a proper understanding of the aGcounts to be reached. JA&a/ James Holland-Leader FCA Knox Cropper LLP Chartered Accountants Office Suite 1 Haslemere House Lower Street Haslemere Surrey GU27 2PE 21 May 2024 Page 8
ThE BERROW COTTAGE HOMES Statement ol Financlal Actlvltles forthe Ygar Ended 31 December 2023 2023 Total funds 2022 Total fvnds Unrestricted Restricted funds fund Notss INCOME AND ENDOWMENTS FROM Donations and legades 10,676 10,676 13,050 Charltable actlvltle8 Housing Actwities 176,863 176,863 158,552 Other trading activiti83 Investm9nt income 40 Total 208 681 208,681 204,039 EXPENDITURE ON Charltable actlvltles Houslng Activities 137 808 170226 Net gainslllossesl on investments 10,288 25,162 NET INCOMEIIEXPENDITUREI 81,061 116,6011 64A60 8,651 RECONCILIATION OF FUNDS Total funds brought forward 1,811,254 770,283 2,581,537 2,572,886 TOTAL FUN08 CARRIED FORWARD 1892 315 753 682 2 645.997 2,581,537 The notes form part of these financial statements Page 9
THE BERROW corrAGE HOMES Balance Sheot 31 Dècemb&r 2023 2023 Total funds 2022 Total funds Unrestricted Restricted fvnds fund Note8 FIXED ASSETS Tangible assets Investments 11 1,466,075 12 607 156 753,682 2,219,757 507 156 2,265,550 477,510 1,973,231 753,682 2,726,913 2,743,060 CURRENT ASSErs Debtors Cash al bank and in hand 13 14,306 14A06 2,973 112,167 183,788 183,768 115,140 CREDITORS Amounts falling due within one year 14 1229,5961 1229,5961 {40,7661 NET CURRENT ASSETS 45 8281 45 828) 74,374 TOTAL ASSETS LESS CURRENT LIABILITIES 1,927,403 753,682 2,681.085 2,817,434 CREDITORS Amounts falling due after more than one year 15 135,0881 135,088} (235,8971 NET ASSETS 1,892 315 753 682 2,581.537 FUNDS Unreslricled funds Restricted funds 18 1,892,315 753 682 1,811,254 TOTAL FUNDS 2 581 537 The financial statements were approved by the Board of Trustees and authorised for issue on 21 May 2024 and were signed on ils behalf by.. N J Cameron - T slee C E Pontifex A.C.A- Trustee The notes fom) part of these financial statements Pago10
E BERROW COTTAGE HOMES Notes to thè Financlal Statements for th? Year Ended 31 Dec•mbor 2023 ACCOUNTING POLICIES Bas18 of preparlng the flnan¢lal 8tatomonts The financial statements of the charity. which is a publlc benefit entity under FRS 102. have been prepared in accordance with the Charities SORP (FRS 1021 'Accounllng and Reportlng by Charities.. statement of Recommended Practice applicable to charities preparing their accounts in accordarKe wlth the Financial Reporting Standard appliGable in the UK and Republic of Ireland {FRS 1021 (effective 1 January 2019),, Financial Reporting Standard 102 The Flnandal Reportlng Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The accounts compty with the Charities Act 2011. the Housing and Regeneration Act 2008 and the A(xounting Direction for Private Registered Providers of Social Housing in England 2022. The financlal statements have been prepared under th8 historical cost convention, with the eXptIOn of investments which are included at markgt value, as modified by the revalualon of certaln assets. The financial statements are presented in sterling, which is the functional currency of the Charity and aTe rounded to the nearest pound. The accounts have been prepared lo give a 'true and fair view, and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the exlent qUired to provide a 'lrue and fair view,. This dgparture invofved following Accounting and Reporbng by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS1021 issued on 16th July 2014 rather than the Accounting and Rewrting by Charities Statement of Recommended Practice effective from 1st April 2005 which has since been wlthdrawn. Golng concern The financial slatem8nts have been prepared on a going Gonrn basis as the Trustees belleve that no m8terial uncertainties exist. The Trustees have considered the level of funds held and the expected level of IrMe and expenditure for 12 monlhs from authorislng these financial slatemenls. The budgeted income and expenditure is sufff¢ient wilh the level of reserves ftir the Charity lo be able to ¢ontinue as a going concern. crftlcal accountlng ludgements and koy source$ of o8tlm8tlon uncertalnty The following are the critical judgements and key sources of estimation uncertainty that the Board has made in ihe PresS of apptying the charity'5 accounting policies and that have the most significant effect on the amounts recognised in the financial statements.. Identification of housing property components The charity a¢¢ounts for ils expenditure on housing properties using component a¢counting. Under component aGGounting, the housing property Is divided into those major components whlch are considered lo have subslantialty different useful economic lives. Judgement is used in allocating property costs between components (land, structure, kitchgns, bathrooms elc) and in determinlng the useful economic lives of each componenl. Housing property depreciation is calculated on a compongnt by component basls. The Ideniificatlon of such components is a matter of judgement and may have a materlal impact on the depreciation charge. The Gomponents selected are those which reflect how the major repalrs to the propety are managed. Income All income is recognised once the Charity has entitlement to tho income, it is probable that the Income will be received and the amount of inwme receivable can be m8asured reliably. Income from housing represents housing ¢ontrlbutlons from weekly malnlenance charges from residents. No amount is included in the financial slatements for volunteer Ilme In line with the SORP IFRS 1021. Page 11 continued...
ThE BERROW corrAGE HOMES Notes to thè Flnan¢ial Statgmgnts - Contlnued for the Year Endod 31 Docomber 2023 ACCOUNTING POLICIES - contlnued Income Investment Income is 8arned through holding assets for inv8slmenl purposes such as shares. It induded dividends and interest. Where it is not practical to identify inveslm8nl management costs incurred wthin a schem8 with reasonable accuracy the investment income is Teported nel of these costs, It is includod when the amount can be measured reliably. Interest incomg is etnISed uslng the effectivg interest mgthod and dividend inGome is recognised as the Charity'$ righl lo receive paymonl is established. Social Housing Capital orants are recognlsed only when recelvable, or In the period in which a scheme is completed and where the anTr)unl of the grant has been delemiined. Grants are reflected In the reStrted Housing Property Fund with depreciation on grant fvnded assets reducing this fund. Expendltuve Liabilities are recognised as expenditure as soon as there is a legal or constructwe obligation commith'ng the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obllgatlon can be measured rell8bly. Expenditure is accounted for on an accruals basFS and has been classified under headings that aggregate all cost related lo the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistsnl with the use of resources. Tanglble flxed aets Hou8lng propertles The original Berrow Cotlage Homes Almshouses were constructed In the late Nineteenth Century. There is no record of the original cost but they are valued al 1st January 1926 at £2,000, with additions since at cost belng funded by Homes England and ils predecessor bodies Grants, Mortgage Loans, Charitable Donations, and from the Berrow Cotlage Homes, own resources. Housing properties are staled al depreciated Cost. The ¢ost of completed houslng properbes Is dopreciated over the life of the propertles. Properties are accounted for on a componenl cost basis with each component being depreciated over its estimated economic life. The principal components idenllfied and the depreciation rate applied lo each component are set out low.. Yoar6 100 70 40 30 30 30 20 Fabri Roof Electrlcs ndows and doors Bathrooms Healing, Venlilalion, Plumblng Kitchens Boilers Other enhancements 10 Housing prop8rties in the course of construction are dlsclosed at cost wllhln work In progress and not deprec5ated until the scheme is completed and the assets brought Into use. The Charlty ¢apltallses expenditure on housing propertles whS¢h increases the nel rental stream over the life of the property. An IncaSe in the net rent81 stream may arise through an increase in rental income, a reduction in future maintenance costs or a signilicant extension of the Ilfe of the property. Furnlture, Flttlngs and Equlpm9nt Depr@cialion on Furniture, Flttings and Equipment has been provided in order to wrlte off the cost over Its expected useful life on a reducing balance basls. The rate used for thls purpose Is 10%. Page 12 Gonlinued...
THE BERROW COTTAGE HOMES Notos to tho Flnanclal 8tstements - contlnued for the Year Endod 31 December 2023 ACCOUNTING POLICIES . contlnugd Taxallon The charity is exempt from tax on its charitable actlvities. Fund acGountlng Untsstricted funds can be used in accordance with the charitab]e objectlves at the discretion of the trustees. Restricted funds can only be used for particular restriGled purposes within the objects of the charity. Restrictlons arise when specified by the donor or when funds are ralsed for particular restricted purposes. Further explanation of the natuffj and purpose of each fund is included In the notes to the financial statements. Pension costs and other po8t-r•tlrement boneflts The charity operates a defined oontributlon pension scheme. Contributions payable lo the Gharlty's pension scheme ar8 charged lo the Siatement of Financial Activilies in the period to which they relate. Dgbtor8 Trade and other debtors are recognised at Ihe settlement amount due after any trade discount offered, Prepayments are valued al Ihe amount prepaid nel of any trade dlscounts due. Cash at bank and Sn hand Cash al bank and cash in hand indudes cash and short term highly liquid Investments with a short maturlty of three months or less from the dale of acqulsition or opening of the deposit or similar accounL Crgdltors and provl8lon8 Creditors and provisions are recognised where the ¢harity has a present obligation resulting from a past event that will probably result In the transfer of funds to a third party and the amount due lo settle the obligation can be measured or eSMated reliably. Cr9ditors and provision$ are normally reGOgnis8d at their settlement amount after allowlng for any trade discounis due. Flnanclal Instruments The charity only has finaKial assets and financial Ilabililies of a kind that qualify as basic financial instruments. Basic financial instruments are initially reco9nised at transaction value and subsequently moasured al their settlement value with the exception of bank loans which are subsequgntly m8asured al amortl$ed cost using the effective interest method. OTHER TRADING ACTIVITIES 2023 2022 Other Income 40 Page 13 continued...
ThE 8ERROW corrAGE HOMES Note8 to the Flnanclal Slatements- ¢onllnued for the Year Ended 31 Decembor 2023 INVESTMENT INCOME 2023 2022 Investment income Deposit account Interest 19,358 32,382 55 32,437 INCOME FROM CHARrrABLE ACTIVITIES 2023 2022 Gross maintenance contrlbutions from residonts Gross maintenance contributions from Supporting People Losses from voids 179,375 167.674 1,292 10 4141 176 863 158 552 SUPPORT COSTS Governance Costs Man8gement Finance Totals Housing Activllies TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 Dember 2022. Tru8ts05' expen806 Total expenses reimbursed to trustees in the year were as follows.. 2023 2022 Sundry expenses Upkeep of grounds Repairs Administration Outreach Travel 375 13 713 250 31 269 46 £550 Expenses were reimbursed to 5 Trustees in the year12022.' 4). Pag8 14 continued...
THE BERROW corrAGE HOPAES Notes to th8 Flnanclal Stat¢ments- Gonllnued for th• Year Ended 31 D&¢¢mber 2023 STAFF COSTS 2023 2022 Wages Social security Pension Other employee benefits 3S,263 390 2,224 652 34,444 273 2,061 575 No employees ceiVed emoluments in exGess of £80.000. The average monthly number of employees duTlng the year was as follows.. 2023 2022 Warden Clerk No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEME OF FINANCIAL ACTIVITIES Unrestricted funds RestriGted Jnd Total fvnds INCOME AND ENDOWMENTS FROM Donations and legacies 13,050 13,050 Charltable actlvltles Housing ActNilies 158,552 158.552 Investment income 32,437 Total 204 039 204 039 EXPENDrruRE ON Charltablo actlvltl88 Housing Activities 153625 170 228 Net galnsl{lossesl on Investments 25,1621 25,1621 INCOMEI(EXPENDrruREI 25,252 116,601) 8,651 RECONCILIATION OF FUNDS Total funds brought fOard 1,786.002 786,884 2,572,886 TOTAL FUND8 CARRIED FORWARD 1,811254 770 283 2 581537 Page15 contlnued...
TFIE BERROW COThAGE HOMES NotOS to the Flnanclal Ststoment8 - conllnued for thg Yèar Ended 31 Decomber 2023 SOCIAL HOUSING ACTIVITIES 2023 2022 Turnover from Social Housing Operating wsts of Social Houslng 176,863 154 4091 158,552 170 2661 Operating deficlt and deficit on Social Housing ackn'vities 10. SOCIAL HOUSING GRANT The total Social Housing Grant received for The Berrow Collage Homes as at 31st December 2023 amounted to £931,08412022'. £931,084). The full Capital Grant would only become repayable if the Almshouses were disposed of and the grant was not reGycled. Aggregate amount received At 31st December 2023 931084 Released to Statement of Financial klivities Al 31st December 2023 931 D84) Social Housing Grant Carrled forward 11. TANGIBLE FIXED ASSETS Fixtures and fittings Housing properties Plant and maGhlnery Totals COST Al 1 January 2023 Additions Disposals 2,622,614 3,060 22,634 5A41 1.636 2,650,889 4,598 At 310ecember 2023 2 623 199 5,977 2661810 DEPRECIATION At 1 January 2023 Charye for year Elimingted on disposal 360.676 48.793 19,022 782 6,441 154 385,139 49,729 At 31 December 2023 407 654 432.053 NET BOOK VALUE At 31 December 2023 2215545 2 219,767 At 31 December 2022 2.261.938 3,612 2 265 550 Page 16 ¢ontinued...
THE BERROW corrAGE HOMES Notes to the Flnanclal Statements- Corrtlnugd forthg Year Ended 31 December 2023 12. FIXED ASSET INVESTMENTS Listed Inveslmenls MARKET VALUE At 1 January 2023 Revaluations Accumulated dividends 477,510 10,288 At 31 December 2023 507 156 NET BOOK VALUE At 31 December 2023 507 156 At 31 December 2Q22 477 510 There were r)0 Investment assets outside the UK. 13. DEBTORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 2023 2022 ATrears of Maintenance contributions Employers, Allowance Prepayments and accrued Income 639 397 1,835 741 14,306 2.973 14. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Bank loans and overdrafts {see note 161 Taxation and sodal security Other Gredilors 195,204 2,507 3,427 3,025 229 596 40,766 Page 17 continued...
THE BERROW COThAGE HOMES Notes to the Flnandal Statgments- ¢ontlnu8d forthe Ygar Endad 31 December 2023 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2023 2022 Bank loans (see nole 161 Other creditors 193,809 235 897 LOANS An analysis of the maturity of loans is given below.. 2023 2022 Amounts falling due within one year on demand., Bank loans National Association of Almshouse8 Loan 195,204 3,427 Amounts falling beeen one and years.. Bank loans - 1-2 years Other loans- 1-2 years 193,809 200 809 Amounts falllng due between and five years.. Other loans - 2-5 years 35,088 17. SECURED DEBTS The following secured debts are included wlthln creditors.. 2023 2022 Bank loans 195204 197.236 The bank loan is due to Barclays Bank and is securgd by a legal charge over Mary Galloway House. 2 Kenilworth Road. Knowle. Solihull. The mortgage is repayable by equal instalmenls of princlpal and interest {at an interest rale of 2% +BoE base rate, currently 7.25%). The ear5y repayment of £450,000 was undertaken. to d[ impact of in¢re8sing Bank Base Rates on the finances of the Trust. The loan was lully paid March 2024. The National Almshouse loan is unse¢ured and interest free for 10 years. (Loan received October 2019,. £3,675 slx monthly equal Snstalment8, final repayment October 2029)- Page 18 contlnued...
THE BERROW COTTAGE HOMES Notes to tho Flnanclal Ststements - continued for the Year Endod 31 Do¢omb8r 2023 18. MOVEMETrU IN FUNDS Net movement In funds Transfers beeen funds Al 31.12.23 At 1.1.23 Unrestrlcted funds General fund Investment Revaluab'on Cyclical Repairs Extraordinary Repairs Charitable Property 368,363 113,850 141,226 149,232 1038 583 60,773 10,288 127,5591 401,577 124,138 164,458 167,192 1034 950 23,232 17,960 13633) 1,811,254 81,061 1,892,315 Restrlctgd fund8 Housing 770,283 (16,601) 753.6B2 TOTAL FUNDS 2.581537 60 2 645 997 Nel movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and losses Movement In funds Unre$trl¢ted lund8 General fund Investment Revaluation Charit8ble Property 198,581 1137,808) 60,773 10.288 10.000 10,288 208,581 {137.808} 10,288 81,061 Restrlctsd fund5 Housing 116,601) (16,6011 TOTAL FUNDS 208 581 154,4091 Page 19 Gonlinued..-
THE BERROW COThAGE HOMES Notes to tho Flnanclal Statemènts - ¢ontlnued for the Year Endèd 31 Decembor 2023 18, MOVEMENT IN FUNDS- contlnuod Comparatlvgs for movomant In funds Net movemenl in funds Transfers beeen funds Al 31.12.22 At1.1.22 Unrgstrlcted funds General fvnd Investment Revaluation Cyclical Repairs Extraordinary Rep81rs Chaiilable Propety 235,607 303,850 120.542 138.945 987 058 50,414 (25,1621 82.342 (164,8381 20,684 10,287 51,525 368,363 113,850 141,226 149,232 1038,583 1,786,002 25,252 1,811,254 Re8trlctod funds Housing 786.884 (16,601) 770,283 TOTAL FUNDS 2 572,886 2 581537 Comparative net movement in funds, included in th8 above are as follows.. Incoming resources ReSoUS expended Gains and Movemenl losses in funds Unrestrlcted fund8 General fund Investment Rèvaluatlon 204.039 (153,6251 50,414 25,162) 25 1621 204,039 1153,625) (25.162) 25,252 Restrlctod fund8 Housing {16,601) (16.601) TOTAL FUNDS 204,039 170,226 25,162) Cycll¢al Repalr$ and Malntenance Fund This reserve represents amounts set aside for cyclical Maintenan lo meet costs in excess of budgeted expenditure for any year. Extraordlnary Repalrs Fund This Revenue Reserve represents amounts S8t aside to r£rry out major repairs on Housing PrOpertS Charltablg Fund Propety Fund This represents that proportion of the cost of propertles which was financed by charitable donatlons and the Charlty's own resources. In the year capltalised expenditure on housing pro¥rties and ban inleresl has been transferred lo this fund and depreciation except for that relatlng lo the Social houslng grant for housing properties have b8en transferred from this fund. Houslng Property Fund This represents the social housing grant received from the Houslng Corporation for property Improvements lo the Almshouses. Depreoialion on housin9 woperties is charged lo this fund over the life of the components of the building. Page20 conlinugd...
THE BERROW corrAGE HOMES Notes to the Flnanclal Statements - conllnued for Iha Year Ended 31 Docomber 2023 19. RELATED PARTY DISCLOSURES There were no related party transactions for the year ended 31 December 2023. 20. UNITS IN MANAGEMENT The Charity had 30 units in Management durlng the year.12022.' 301- Page 21
THE BERROW COTTAGE HOMES Detalled Statgmgnt of Flnanclal Actlvltles for Ihe Year Ended 31 Decembor 2023 2023 2D22 INCOME AND ENDOWMENTS Donatlons and legacles Donations 10,676 13,050 Othèr tradlng actlYltlo$ Other income 40 Inv051mont Income Investment Income Deposit account interest 19,358 1,644 32,382 55 21,002 32,437 Charltable actlvltl98 Housin9 Activities- Residents Housing AGlivities- Supporting People Losses from voids 179,375 167.674 1.292 176863 158 552 Totsl Incomlng resources 208,681 204,039 EXPENDITURE Charltable actlvltles Warden's salary Social security Penslons Rates and water InsuranGe Light and heat TelephDne Property repairs & maintenance Cleanlng Alarm costs Warden's utilities Grounds malntenance Council lax Depreciation of housing propert Fixtures and fittings Loss on sale of tsnglble fixed assets 21,569 390 2,876 435 3,527 3,470 1,889 19,237 615 3.243 2.710 7,608 20,873 273 2,C61 208 3,111 5,055 977 23,081 716 3,021 2,974 9,121 48,793 936 660 51,526 782 4,475 117,958 128.520 Support costs Managèment Clerks, salary Cairied forward 13,694 13,894 14,146 14,146 This page does not form part of the statutory financial statements Page 22
THE BERROW COTTAGE HOMES Detallod Statement of Flnanclal Acllvlt195 for the Year Ended 31 Docembfjr 2023 2023 2022 Management Brought forward Twstee irsdemnty insurance Postage and stslionery Advertising Sundries Subs¢riptions Donations Professional fees Training 13,694 358 232 400 564 935 25 1,800 141 14,146 358 500 400 772 892 20 72 18,149 17,160 Flnanco Bank charges Loan 25 15.848 22,296 Govomance costs Independent Examination 2,250 Total resources expended 154409 170226 Nfrt Income This page does nol form part of the statutory financial statements Page 23