Harrison and Potter Trust Trustees. Annual Report and Financial statements for the year ended 31 December 2021 Regstered Charity No: 1179665
Harrison and Potter Trust FINANCIALSTATEMENTS Year ended 31 December 2021 CoNTEs Page No- Officers and Charity infom)ation. including reference and administratrwe details Report of the Trustees Statement of Trustees. Responsibilities and Trustees, Approval Audit Report Statement of Financial ActNities (incorporating the Income and Expenditure Account) 13 Balance Sheet 14 Statement of cash flows 15 Notes to the Financial Statements 16
Harrison and Potter Trust OFFICERS AND CHARITY INFORMATION Year ended 31 December 2021 Reference and admlnistrative details TRuEEs Mr M C Andrews (chaimnI Or l A Blomfield Mrs G M CartWri8ht Mr N A Wainman Mrj Campbell Mr M A Payne Mrs S M Hi88s Mrlwshaw Mr M J Wil%>n BANKERS Natwest pk 8 Park Row Leeds Lsi ias Barday5 Bank plt 10 Market Street Bradford BDI INR INVE5fMENT MANAGEMENT Investec Wealth & Investment Ltd 4thfloor Wellington Place Leeds LSI 4AP ALMSHOUSE MANAGEMENT Leeds and YorkshirÈ HousingAssociation 3° Fl¢)or White Rose House 8 Otley Road Headin8ley is6 2AD AUDITOR Saffery Champness LLP Mitre House North Park Road Haffogate HGI 5RX REGISTERED OFFICE clo Wrigleys Soliotors LLP 17-21 Cookridge Street Leeds LS2 3AG REGISTERED CHARITY NUMBER 1179665 SUBSIDIARY HOMES AND COMMUNMES AGENCY NUMBER A1920
Harrison and Potter Trust REPORT OF THE TRusfEES Year ended 31 December 2021 The Trustees presenttheir annual report tO8etherwith the financial statements forthe year ended 31 December 2021. The financial statements compty with the Charit$ Art 2011 and Accounting and Reporting by Charf(ies: Staternent of Recommended Practice 2019 applicable to chartties preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffertive l January 20191. 08JEcfivES AND AcnviTIES The objects of the ao are two fold being the provision of almshouses and the relief of financial hardship. The CIO carrie5 Out these ofy'ects by= maintaining almshouse devek)ents at Lovell Park Road and Raglan Road in Leeds. providing grants to organisations and to projects in Leeds which alleviate financial hardship, particularty in relation to housing. The Trustees recognise their dutie5 under the Charrties Act 2011 and have referred to the Charty Commission's guidance on public benefft when reviewing the Charrty's activities and cornpiling thi5 report. The actNities described above. and explained in more detail in the following sections. are consistent with the CIO'S values and aims which, in turn, derive from its charitable objects. Almshovse poliLy The almshouse operation alms to provide comfortable and well maintained accornmodatn in pleasant surroundings. Accommodation atthe almshouse5 comprise thirty two bedsits suitable forsingle occupancy and two 2 bedroomed flats at Lovell Park Road and eighteen house5lfiats suitable for single occupancy or for couples at Raglan Road. To be eligible. applicants must be in financial hardship and resident in Leeds, ahoUgh up to tsventy persons can be appointed who are resident within a twenty mile radius of the Civic Hall in Leeds, the Town Hall in Wakefield and the Guild Hall in York. The day to day management of the almshouses is handled by Leeds and Yorkshire Housin8 Association who report regular to the Trustees. The weekly maintenance contribution paid by residents is set annually in accor(lance with national guidelines. The almshouse operatn is largely self-funding. Grant making policy The CIO has established tts grant making policy to achwe its objects for the public benefft. subject however to the geographical restraints imposed by the foundin8 Scheme. Under the terms of the CIO'S Scheme. the indNiduals supported by organisations must be resident in the City of Leeds.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2021 The Trustees invite appllcations from locally based charitie5 With kKal projerts aimed at esther the prevention or alleviation of finanoal hardship. Projects include debt counsellin& provision of housing and purchase of equipment. Grant5 are not made towards general running costs including salaries. nor can the charr¢y commit to repeat grants. ACHIEVEMENTS AND PERFORMANCE The CIO has 2 prinapal aim5- l. The maintenance at)d provision of sheltered supported INin8 units at Lovell Park and Raglan Road These are available to anyone over 55 years of age who is in financial hardship and needing socialty supported Irving. Following the transfer of the OperatK1 of the two almshouses. Lovell Park and Raglan Road to the CIO the CIO seeks to maintain the standard of the almshouses following their refurbishment in 2010111. The CIO has sought to maintain this good standard accommodation through focused input particularly drawing on the individval skills and knowledge of Trustees. The day to day review of the properties and the prOvisn of the scKial support are provided by the Mana8in8 Agent Leeds and Yorkshire Housing Associaln ILYHAI. erall occupancy is high and voids are actively advertised bv LYHh 2. Grant making to local Charities These are made with surplus funds from investments that have not been required by the charty for the propertie5. The Trustees have chosen to largety support a netwo of charities. unique to Leeds, who support the elderly population in the communities wtth particular emphasis on social isolation and hardship. They are endeavouring to improve quality independent lrfe in their local communities. Grants are made for facilities, projects and actWTties, not for staffing and returring costs. Grants to the total of £40,857 12020: £30,825) We made in this financial year. Invertment perforn)an¢e As we continued through the pandemK in 2021, markets were still somewhat turbulent but were on the road to a recovery. China, with its zero-tolerance approach to Covid-19, was the first major economy to return to its pre-pandemic growth trajectory at the turn of last year. The UK arranged post-brexit trading agreements with the EU and as the country quickly moved out of a second lockdown, things appeared to be k)oking up, however although the market wa5 Posttive for 2021, it has not stood out gatlY from other developed markets. Shmilar in US markets, there was a solid performance for 2021 but it was a steady year in comparwn to the rest of the world. The trust portfolio produced a solid retum of 13.1% for 2021 which was slightfy ahead of the benchmark which retumed 11.9%. Positive returns within our Fixed Interest holdings and Alternatives which outperformed their benchmark have helped perfom)ance and we are slightly ahead of the benchmark within UK equrties and Property holdings. Unfortunatety. our overseas equities have been affected by the pandemic and its effects in different parts of the world so we a slightly behind the benchmark in this area.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2021 Overall the portfolio ha5 seen a posr¢ive return for 2021 and given that there are no major markets that have shown above average return5 for the year. being ahead of the targeted benchmark can be seen as a forwar(J step during a very turbulent and unpredictable 12 months. Flnancial reeW During the year the CIO continued to operate almshouses at Raglan Road and Lovell Park Road on broadly self-funding basis and to make grants to indrvidual residents and to local charitable organisation supporting those in fjnancial need. Net income for the year was £538.420 {2020: net expenditure of £47.0361. Gains on investments for the year, included within the net expenditure for the year, amounted to £585.11612020.' losses of £110.5031. A detailed survey wa5 carried out on the sites at Lovell Park and Raglan Road. This highlighted the need for major repair and maintenante expenses at both sites. This resulted in unusually high repair and maintenance expenditure in the year of £132.999. A further £386,(KM) of repair and mairtenance expenditure is budgeted for 2022. Transfers of £69.62812020: £69,628), were made to desgnated reserves from the general fund in connertion with the housing properties for cyclical maintenance and extraordinary repairs. Reserves policy The policy of the Trust is to maintain sufficient capital to enable the Trustees to carry out both the short term and long-tem objectNes ofthe charty. The charity's restricted reserves conststed of the Permanent Endowment presented by the two Almshouses at Lovell Park and Raglan Road in Leeds. In the prior year the pernianent endowment on investrnents was lffted and the total funds We transferred to the unrestricted reserves. The permanent endowrnent on the Almshouse sites remains. The Designated funds amounting to £765,837 at 31 December 2021 are in line with the guidance provided by the Almshouse Association "standards of management" and are conSided by the Trustees to be at an appropriate level. The group's total reserves amount to £7,551,286 at 31 December 2021, with £7,198.785 held within the CIO. Within this the Trustees have considered the level of frèe reserves of the charity which amount to £959.691. Free reserves include cash held on short term deposit with the investment managers of £294,675. In setting the level of reserves theTrustees take into account the need to keep operating should the charity suffer a loss of income or should operations be disrupted in determinlng the level of unrestricted funds. The Trustees abo have regard to the likely cost of updating the properties and investing in fixed assets and to be able to withstand adverse events that can be reasonabty foreseen. The Almhouses are likely to require additional capital expenditure going foThvard a5 the Almhouw become older. Given all these considerations and the fact that the Trustees have designate(i funds of £765,837 for ad-hoc maintenance and extraordinary repairs. in addition to the free reserves. the Trustees are of
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2021 the view that the level of free reserves are at an appropriate level to enable the CIO to meet Its objectives and actNities in the future. Risk factors The Trustees have assessed the major rtsks to which the ao is exposed and a sattsfied that systems are in place to mitigate exposure to the major risks. The Trustees maintain a Risk Register which Is discussed at the quarterly rneeting5 of trustees and updated as necessary. Value for Money The Trust is committed to achievingvalue for Money (VFMI and to focus on embedding good practice into the whole Trust. The trustees have adopted a Value for Money strategy which identifies the ambitions of the trust to move toward5 a transfomiational approach to VFM. VFM has been defined as the relationship between economy, efficiency and effectNeness. VFM is hvgh when there is an optimum balance between all three- relatively low cost, high productivity and successful outcomes. VFM bs about runninga viable social trHJsiness and looking to continually improve VFM activities have the following objectives at all leveb and functions within the Trust. To embed the VFM strategy and continuous improvement in the organisation's cure To adopt further good practice in relation to VFM, reducing risk of exposure to financial and material waste.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2021 VFM Metrics l- Reinvestment percentage (New investment in properties as a percentage of total properties held) 2021 7.6% 2020 6.2% 2A- New supply delivered (percentage) INew social housing units developed as a percentage of social housing units held) NIA NIA 2B- New suppty deliVed Inon-social housing unitsl (Non-social housing unrts devek)ped as a percentage of total housing unTts owned) NIA NIA 3- Gearing percentage (Loans less cash as a % of the value of housing properties) N/A NIA 4- EBITDA MRI interest cover percentage NIA NIA 5- Headline social housing cost per unit Social housing costs excluding depreciation dNided by social housing units ownedl £7,491 £6,662 6A- Operating margin Ioperating surplus as a percentage of turnover from social housrng lettin8s1 -31% -15% 6B- Operating margin overall (Operating surplus a5 a percentage of tumover} -22% 7- Return on capital employed IROCEI perntage Ioperating surplus as a % of total assets less curTent liabilities) -1% -1% PLANS FOR THE FUTURE The Charity plans to continue the artivitres outlined above and no material change is anticipated in the way the almshouse operation is managed in the next financial year. The Charity intends to continue to make grants as part of its charitable attivities during 2022 at a similar level. The trustees are conscious that the acCommodatn provided to residents is in need of significant modernisation in the lon8 term. Trustees intend to explore all options. including redevelopment of existing sites or building new accommodation on newsites. Since the yearend. preliminary discu55ions have been opened with consultants specialising in almshouse development and funding. STRucfuRE, GOVERNANCE AND MANAGEMEP The Harrison and Potter Trust is a Charitab incorporated organisation constituted under a Scheme of the Charity Commission dated 24 August 2018 and is a Registered Charity. number 1179665. The CIO succeeded to the charitable activities of Harrison and Potter by way of a transfer of assets on 31 December 2019 from Harrison and Potter Trust, which is a Registered Charity, number 1179665-1.
Harrison and Potter Trust REPORT OF THE TRusfEES (Continued) Year ended 31 December 2021 The linked Charity, Harrison and Potter Trust Charity Number 1179665-1. is registered with Homes and Communities Agency A1920. The CIO Harrison and Potter Twst Charity Number 1179665 ts not registered with Homes and Communities Agency. It is the intention of the Trustees to applyfor registration of the CIO as soon as is practicable. The body of Trustees comprises a maximum of eleven persons. minimum of four persons. Other than the original tmstees appointed on 24 August 2018. new trustees are appointed for a temi of 3 years, after which period, they may put themsefves forward for appoIntment. The Trustees meet quarterty in February, May. August and November and atthe February meeting elert a Chaimian for the forthcoming year. The meetings in May and November focus primarity on finanaal and investment matters including annual accounts, budgets for the almshouse operntions, investment perforniance and funding available for grants. The almshouse operatn and welfare and needs of the residents of the almshouse5 are reviewetl with the managing agents at the quarterly meeting5. To asslst the day to day administration of the cio, there is a finance and investment5 sub-committee. In addition, individual Trystees liaise wtth the managing agents regarding welfare or property matters throughout the year. All Trustees give of their time free and rbo Trustee remuneration is paid. Trustees are appointed by a resolution of the exi5tingTrustees passed at a speaal meeting. On 16th July 2021 the trustees entered into a new almshouse management agreement with Leeds & Yorkshire Housing Association. This supersedes the previous agreement entered into on 22nd May 2014. This agreement sets out in detail the management services to be provided by LYHA in relation to the almshouses. key performance measures, delegation levels and management reporting mechanisms. The agreement is subject io review on an annual basis and the first such revwi took place in March 2022. STATEMENT ASTO DISCLOSURE OF INFORMATION TO THE AUDITOR The Trustees who were in office on the date of approval of these financial statements have confimied, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees has confirmed that they have taken all the 5tep5 that they ought to have taken as Trustees in orderto make themselves awa of any relevant audit information and to establish that it has been communicated to the auditor.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2021 STATEMErif OF THE RESPONSIBIUTIES OF THETRvsfEES The Trustees are reSnSIble for preparing the Ttee$. report and the finantial Statements in accordan with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generalty Accepted Accounting Practice). Charity law, in England and Wales, requires the Trustees to prepare financial statements for each financial year which 8Ne a true and fair view of the state of affairs of the charTty and of tts incoming SoUrS and application of resources of the charity for that period. In preparing these financial statements, the Truslees are required to: select suitable accounting policies and then apply them consistentty: obseNe the methods and principles in the Charities SORP IFRS1021: make judgements and estimates that are reasonable and prudent- stste whether applicable accounting standards have been followed, subject to any material (Jepartures (lisclosed and explained in the financial statefflents.. and prepare the financial statements on the going concern basis unless it inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with 8$Onable accuracy at any time the financial position of the charity and enable them to ensure that the financial Statements comply with the Charities Act 2011 and the provIsnS of the trust deed. They are also responsible for safeguarding the assets of the charty and hence for taking reasonable step5 for the prevention and detection of fraud and other irregularities. Mr N Wainrnan Trustee Mr J Campbell Trustee
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THETRUSTEES Year ended 31 December 2021 Oplnion We have audited the financial statements of Harrison and Potter Trust for the year ended 31 December 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and note5 to the financial statements, including s48nificant actounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republ of Iland Iunited Kingdom General Accepted Accounting practi). In our opinion the financial statements- give a true and fair view of the state of the charl5 affaits as at 31 December 2021 and of its incoming resources and applicatbon of resources forthe year then ended- have been property prepared in accordance with United Kingdom Generalty Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Charities Art 2011. Basls for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includhng the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilitie5 in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu0$ relating to 8dng concern In auditlng the financial ststements. 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. indNidually or collectively. may cast significant doubt on the charity's ability to continue as a going concem for a per)d of at least twelve months from when the financial Statements are authori5ed for issue. Our responsibilities and the responsibilits of thetrustees with respectto goingconcern are descrlbed in the relevant sections of this report. Other inforn)atlon The trustees are responsible for the other inforniation. The other infomiation comprises the information included inthe annual report, other thanthe financial statements and ourauditorfs report thereon. Our opinion on the flnancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our reporL we do not express any form of assuran concluslon theon.
Harrison and Potter Trust INDEPENDENT AUDFTOR'S REPORTTO THE TRUSTEES Icontinuedl Year ended 31 December 2021 Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financral statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencie5 or apparent material misstatements, we are required to determine whether this gNes rise to a material misstatement in the financial statements themsefves. If, based on the work we have performed, we conclude that there is a material mi%statement of this other infonnation- we are required to report that fatt. We have nothing to report in this regard. Matters On whlth we are required to report by exceptio We have nothing to reF)Ort in respect of the following matters in relation to which the Charrties (Accounts and Reports) Regulations 2fX18 require us to rert to you rf. in our opinion.. the information given in the Trustees. Annual Report is inconststent in any material respect with the financial statement5.' or the charity has not kept sufficient accounting records; or the financial ststements are not in agreement with the accounting records and returns,. or we have not receNed all the informatK)n and explanations we require for our audit. Responsibllities of trustees As explained more fully in the Trustees. Responsibilities Statement set out on page 8, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true an(1 fair view, and for such internal control as the trustees detemiine is necessary to enable the preparation of financial statements that are fe from material misstatement. whether due to frnud or error. In preparingthe financial statements. the trustees are reS)nSIble for assessing the chartV5 abilityto continue as a going concern, disclosin& as applicable, matters related to going concern and using the going contern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no reallstic altemative but to do so. Audltorf responsibillties for the audit of the financial statements We have been appointed as auditors under the Chartties Art 2011 and port in attordance with regulations made under that Act. Our objectives are to obtain reasonable assurance alx)ut whether the financial statements as a whole a free from material misstatement. whether due to fraud or error, and to issue an auditors, report that include5 our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always deted a material misstatement when it exists. Misstatements can arise from frèud or error and are considered material if, indNldual or in the aggregate, they could reasonab be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities. induding frdud, are instances of non-compliance with laws and regulations. We design prt)cedures in line wrth our responsibilities, outlined above. to detect material misstatement5 in
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THETRUSfEES (continued} Year ended 31 December 2021 respect of irregularities. inclu(11 fraud. The specifK procedures for thi5 engagement and the extent to which these are capable of detecting irregularities. including fraud are detailed below. Identifying ènd assessing risks related to ie8VIarit1eS. We assessed the susceptibility of the charitvs financial statements to material rnisstatement and how fraud might occur, includin8 through discussions with the trustees, discussions within our audit team planning meetin& updating our record of internal controls and ensuring these controls operated as intended. We evaluated p055ible incentNes and opw)rtunities for fraLbdulent rnanipulatlon of the financial Statements. We *Jentified laws and regulations that are of significance in the context of the charity by discussions with trustees and upd1Th8 our understanding of the sector in which the charity operates. Laws and regulations of direct signtficance in the context of the charty include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued bythe Charity Commission for England and Wales. Audit response to risks identified: We considered the extent of compliance with these laws and regulations as part of our audit procedures on the relatetl financial statement items including a review of financial statement disclosure5. We reviewed the charirfs records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorit$ to identify potential material misstatements arising. We discussed the chariVs policies an(1 procedures for compliance with laws and regulations with members of management responsible for complian. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might Invo non-cornpliance with laws and regulations or fraud. We enquired of management whetherthey We aware of any instances of non-compliance wrih Liws and regulations or knowledge of any actual. SU5ted or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entrie5 and identifying any 518nificant transactions that We unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partnerfs review included ensurin8 that the team had approached their work with appropriate professional scepticism and thus the capacty to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the evenis and transactions reflected in the financial statements, the less likely we would become aware of it. Also. the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example. forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's websrte at- www.frc.or .uk auditorsres onsibilrties. This description forms part of our auditorfs report. il
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTOTHE TRUSTEES {continued) Year ended 31 December 2021 Use of our report This report is made solet0 the charivs trustees. a5 a body. in accordante with Part 4of the Charities IAccounts and Reportsl Regulations 21X)8. Our audtt work has been undertaken so that we might state to the trustees those matters we are require(I to state to them in an auditorfs report and for no other purpose. To the fullest eent permitted by law, we do not accept or assume responsibilty to anyone otherthan the charwty and the trustees as a t¥, forouraudrt work. forthis report, orforthe opinions we have fonyjed. S,&t-] QJW ' Saffery Champness LLP Statutory Auditors Mitre House North Park Road Harrogate North Yorkshi HG15RX Date- 28 June 2022 Saffery Champness LLP is eligible to act as an auditor in ternis of section 1212 of the Companies Act 12
Harrison and Potter Trust STATEMENT OF FINANCIAL AcfiviTIES (incorporating the Income and Expenditure account) Year ended 31 December 2021 Unrestricted funds Restricted Totsl funds funds 2021 Totsl funds 2020 Notes Income frorn: Charitable activities Investments Total 342.892 136,235 479.127 342,892 136,235 479.127 351,412 180,312 531.724 Expenditure on: Raising funds Charrf(able artivities Totsl 33,775 474,856 508.631 33,775 492,048 525.823 30,208 438,049 468.257 17.192 17,192 Net gains/llossesl on investments 12.13 585.116 585,116 1110,5031 Net In¢ome/lexpenditurel 5S5,612 117.1921 538,420 147.0361 Transfer5 between funds 18 Net m¢)vement In fvnds 555.612 117,192) 538.420 147.036} Re¢ondllatioTh of funds: Total funds brought forward 6.643.173 369.693 7.012,866 7.059.902 Total funds arrfed forward 18 7.198,785 352.501 7,551,286 7.012,866 The financial statements were approved by the Trustees orb - and signed on their behalf by- Mr N Wainman Trustee Mr J Campbell Trustee The note5 on pages 16 to 29 fom) part of these attounts. 13
Harrison and Potter Trust BALANCE SHEET as at 31 December 2021 Note 2021 2020 Fixed aets Tangible assets Investment properties Investments li 12 13 659.154 345.C 5,882,116 687,676 320,LX)O 5,322,217 Total fixed assets 6,886.270 6,329,893 Current assets Debtor5 Investments Cash at bank and in harKI 14 15 29,258 345,642 3,397 30,850 552.058 362.989 Total furyent assets 765.297 945.897 Creditors: Amounts falling due within one year 16 I1.281) 1262.9241 Net current assets 665,016 682,973 Totsl assets less current liabilities 7,551,286 7.012.866 Net assels 7551.286 7,012.866 The funds ¢f the charity: Unrestricted fvnds Unrestricted general funds Designated funds 18 18 6.432.948 765.837 5.978.252 664,921 Totsl unrestrfrted funds 18 7,198.785 6,643,173 Restrlcted funds 18 352,501 369,693 7.551.286 7,012.866 The financial statements were approved by the Trustees on and sned on their behalf by.. Mr N Wainman Trustee Mr J Campbell Trustee The notes on pages 16 to 29 form part of these accounts. J4
Harrison and Potter Trust STATEMENT OF CASH FLOWS as at 31 December 2021 Notes 2021 2020 Cash flows {used in)Ipro¥ided operating activrtie5 1284.9621 111,115 Cash flows provided byllused in) ibwestiry artivities Purchase of tangible fixed assets Investment income Disposal of current asset investments Purchase of listed investments Proceeds from sale of listed investments Increase) in cash held by the investment manager Net Cash Ilows generated from In¥estin8 activities 129,928} 124,3891 135.665 180,312 206,416 1415,3851 1833.9961 470,104 821,095 154.5021 132.9791 312370 110.043 Net Increase in cash and equivalents in the year 27A08 221.158 Cash and fash equiv*ents at l January 2021 362.989 141,831 C•sh and &75h equl¥alents at 31 December 2021 390,397 362.989 a) Analysis of net fvnds Asatl January 2021 Cash flows Asat31 December 2021 Cash at bank and in hand 362.989 362,989 27,408 27,408 390.397 390,397 15
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2021 ACCOUNTING POLICIES BASIS OF ACCOUNTING These financial statements have been prepared underthe historical cost convention, as modified by the revaluath)n ol investments and in¥e5tment properties. in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland IFRS 1021 120191 Icharities SORP IFRS 10211. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Att 2011. Harri50n and PotterTrust ICIO} meet the definition of a public benefrt entity under FRS 102. On 31 December 2019, all of the assets of Harrison and Potter Trust We transferred into Harrlson and PotterTrust ICIOI with the exception of the Almshouses, which are pemianently endowed and remain in Harrison and Potter lunincorporatedl. This transfer wa5 accounted ft)r under the merger accounting method and the comparatbve amounts have been presented on the same basis in accordance with the Charities SORP IFRS1021. In 2020 Harrison and Potter CIO and Harrison and Potter lunincorporatedl became linked charities. This has been accounted for under the branch accounting method in accordance with the Charities SORP IFRS 1021. For more details see note 21. GOING CONCERN The financial statements have been prepared on a going concern basis. The Trustees have considered how the Trust will meet the challenges presented by the current economic climate. They have carried out a detailed review of the Trust's resources includin8 the adequacy of w01ng capital for the next twelve months. The Trustees are satisf*d that the Trust has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of these financial statements. SOCIAL HOUSING GRANT Social Housing Grant ISHGI is paid by the Housing Corporation to reduce the cost of development and is recognised as income on reIpt and completron of the project to which it relate5. 5HG is repayable under certain circumstances. primari following the sale of a property but will nomially be restricted to net proceeds of sale. A Social Housing Grant of £675.042 was received in connettion to the refurbishrnent of Raglan Road and was recognised in unrestricted reserves. Should a triggering event ocoJr. this amount would be repayable by Harrison and PotterTrust lunincorporatedl la linked charity. charity number: 1179665-11. TheTrustees have obtained confimiation from Homes England that the transfer of almshouse operations to Harri50n and Potter Trust CIO wa5 not a triggering event subject to Harrison and Potter Trust lunincorporatedl (charity number- 1179665-11 remaining a Regtered Provider. io
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2021 ACCOUNTING POUCIES Icontinuedl FIXED AssEfs- HOUSING PROPERTIES Housing properties are stated at cost which includes the following: cost of acquiring land and buildings- developmenl expenditure. Works to existing properties a works which result In an increase in the net rental income, such ès a reduction in the future maintenance costs. or 5VIt in a signrficant extension of the useful economic life of the property in the Trust. on the direct overhead costs associated with these improvements a capitalised. FIXED ASSETS- OTHER Othertangible red a5setsare stated at costwiih the exception of property held forinvestment purposes. DEPRECIATION Housing properties Housing properties are depreciated at a fate of 2% per annum on cost. The depreclatlon on the 2 almshouse properties is charged to restricted funds. Land is not depreciated. Investment propertie5 Investment properties are not depoated. Other fixed assets Depreciation is provided on the following bases: Heating systems- 6.67% per annum on cost. Other fixtures & fitting5- 15% per annum on cost. INVESTMENT PROPERTIES Investment properties a stated at their estimated value on an open market basis at the balance sheet date. Valuations are updated annualfyl by the Trustees and every third year by independent Chartered Surveyors on an open market basi5. No depreciation is provided in respert of freehokl investment properties or on leasehold investment properties where the unexpired lease tenn exceeds 20 yeats. Details of the currentvalue and hbstorical cost inforniation for investment properties are grven in note 12. 17
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2021 ACCOUNTING POLICIES Icontinuedl INVESTMEN75 Investments are stated at market value. Purchases and sales of investments are dealt with by reference to the date of contract. When a contract has been entered into during the year but settlement does not take place until after the end of the year an amount is included in the balance sheet under either creditors or debtors as appropriate. COIF FUNDS IN CURRENT INVESTMENTS COIF funds are included within current investments as they are a cash dewsit with a maturTty date of less than one year which is held for investment purposes rather than to meet short term cash commitments as they fall due. EXTRAORDINARY REPAIR FUND The Extraordinary Repair Fund is a designated fund held pursuant lo the Trustees. reserves poliry. The Fund is maintained by annual transfer out of the CIO'S income and used to cover items of extraordinary repair. CYCLICAL MAINTENANCE FUND The Cyclical Maintenance Fund is a designated fund held pursuant to the Trustees, reserves policy, used for providing for items of ordinary maintenance and repair of the almshouses which recur at infrequent intervals. RESTRICTED FUNDS These are fund5 that can only be used for particular $tricted purposes within the objects of the charity. Restrictions arise when specif1 by the donor or when the funds are raised for particular restricted purposes. INCOME Income represents income from social housing lettings. investment intome and surpluses on disposal of investments. Credr( is taken for social housing letting income as it falls due. Investment income is uedlted to the income and expendrfrture account on a rer*able basis. APPORTIONMENT OF MANAGEMENT EXPENSES Direct employee, administration and operating costs have been apportioned to relevant sections of the income and expendtture account on the basis of actual expendtture. Finance and adminlstration costs are further apportioned on the basis of estimated time spent on each activity. 18
Harrison and Potter Trust NOTES ON THE ACCOUNTS {continuedl Year ended 31 December 2021 ACCOUNTING POLICIES Icontinuedl GRANTS PAYABLE Grants payable are recognised at the point at which they are approved and the recipient is notified. Where the TnASt has agreed to make a grant payment in the futu to a specrfic recipient this is accrued as expendtture. TAXATION For taxation purposes the Trust has charity status and accordingly is exempt from tax on its investment and rental income and on its capital gains. VALUE AODED TAX The Trust is not registered for Value Added Tax and expenditure shown inclusive of VAT in these financial statements. FINANCIAL INSTRUMENTS The charty onty has financial assets and financial liabilities of a kind that qualify as basic financial Instruments. Basic financial instruments are initialty reco8ni5ed at transaction value and subsequent measure at their settlement value. DEBTORS Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepared net of any trade discounts due. CREDITORS AND PROVISIONS Creditors and provisions are recognised where the charty has a present obligation resutting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normal recognised at their settlement amount after albwing for any trade discounts due. OPERATING LEASE COMMITMENTS Rentals payable underoperating leases. wheresub5tantialty all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial actr¥ities in the year in which they fall due. J9
Harrison and Potter Trust NOTES ON THE ACCOUNT5 Icontinued} Year ended 31 December 2021 ACCOUNTING POLiaES Icontinuedl CRIMCAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINT In the application of the chariws accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revi5iOnS to actounting estimates are reco8nised in the period in whKh the estimate is Vised whether the revisions affects only that period. or in the rIOd of the revlsion and future periods where the revision affects both current and future period5. Comparatlve SOFA Unrestricted funds Restrfrted Total funds fvnds 2019 Income from: Charitable activities Investments Total 351,412 180.312 531.724 351.412 180,312 531,724 Expenditure on: Raising funds Charitable activit$ Total 30.208 420.858 451.066 30,208 438,049 468,257 17,191 17,191 Net gainsl Ilosseslon investments 1110.5031 1110,5031 Net lexpenditurell Income 129,8451 117,1911 147,0361 Transfers between funds Net m¢)¥ement In funds 129.845} 117.191 147,0361 Reconciliation of fvrth.. Total funds brought forward 6.673,018 386.884 7.059,902 Total funds Carried for¥vard 6,643.173 369.693 7.012,866 20
Harrison and Potter Trust NOTES ON THE ACCOUNTS {continuedl Year ended 31 December 2021 Income from charitable activities 2021 2020 Income from social housing iettings 342,892 351,412 Investment income 2021 2020 Interest and dNidends from investment porrfolio Rental income frorn rented land 131,235 175,312 5,LKIO 180,312 136,235 5 Expenditure of rai5in8 fvnds 2021 2020 Investment management fees 33,775 30,208 An*ls ol expenditure on charltable acti¥itie5 Social housiry Pro¥lsion of Ti>tal 2021 Total 2020 Management costs Depreciation Bad debts Service costs Routine maintenance Planned maintenance Support costs Vouchers for residents Grants to external bodies (note 71 86.925 58,450 3.293 125.525 115.469 17.530 40.799 86,925 58,450 3,293 125,525 115.469 17,530 40,799 3.2LN) 40.857 88,655 56,117 9,719 147,430 27.185 29.095 46,523 2,500 30,825 3.200 40.857 447.991 44.057 492,048 438,049 Included in the above is a £17,192 depreaation charge of the Almhouses which is restricted. Governance costs intluded in support costs: 2021 2020 Audrt and accountsncy Legal fees Clerk to the Trustees 12.756 5,802 20,309 38,867 15,079 10,017 20,284 45,380 21
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2021 Anatysis of grants made 2021 2020 Vulnerable peop and the homefess Support to the over 60's Resident food vouchers 23,080 17,777 3,200 44,057 16,319 14,506 2,5CKJ 33.325 All grants were made to Charitable organisatn5 or beneficiaries in furtherance of ihe Charitys objectNes. Net in¢omelleMpenditure) for the year This is stated after charging= 2021 2020 Depreciation of housing properties Depreciation of other tangible fixed assets Operating lease rental Auditorfs remuneration Current year- for audit services - for non-audit services- a¢¢ountancy Prior year- for audit services 17,192 41.258 3,110 17,191 38,926 3,110 8,976 3.780 4.080 3,199 Analysls ofstaff ¢osts, tnlstee remuneration and expenses. and the cost of key man•8ement personnel The employees have their contracts of employment with Leeds and Yorkshire Housing Association. 2021 2020 Employee costs during the year: Wages and salaries 38,696 36,064 None of the Trustee5 lor any persons tonnected with them) recetved any remuneration during the year. Travel and sub5iStence expenses amountin8 to £nil were reimbursed to the Trustees12020.. £nill. No employee 1Ved emoluments of MO than £60.LKIJ during the current or preceding year. 22
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2021 10 Stsff numbers The average month number of empbyees lincluding part-time stsffl during the year was as follows- 2021 No. 2020 No. Average number of employees li Tangible flxed ats Freehold land and buildings Lovell Park Road Heating Systems Flxtures & Fittings Raglan Road Total CtIvaluation Cost blfwd Additions Disposals Revaluatbjn Cost cld 719.326 146,115 598.432 7.212 119,313 22,716 1,583,186 29,928 719.326 146.1 E5.644 142,029 1,613,114 Deprecithion Depn blfvid Charge for the year Disposals Revaluation Depn clfwd 436.845 14.387 58.903 2.805 295,414 38,189 104.348 3,069 895,SlO 58,450 451,232 61,708 333.f3 107.417 953,960 NBV cllwd 268,094 84.407 2n,041 34,612 659,154 NBV blfwd 282.481 87,212 303.018 14,965 687,676 At 31 December 2021 the Harrison & Potter Trust owned and managed 52 unit5 12020: 52 unit51 of housing accommodation. All 52 units represented supported housin8 and housing for older people. 23
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2021 12 Investment properties Freehold Land at Barwick in Elmet Valuation At l January 2021 Revaluation 320.iJ)O 25,000 At 31 December 2021 345,(KK) Net Book Value At 31 December 2021 345,C(L) At lJanuary2021 320,CMXI This parcel of land was revalued on an existing use basis at £345,IX() by Bartle & Son, Valuers & Auctioneers. as at 31 December 2021 and this value wa5 incorporated into the financial statement5 at that date. The original cost of this land is £5.465. The Trustees have vIeWed this valuation at the year- end and consider it to remain appropriate. 13 Investments 2021 2020 At market value: At beginning of year Additions Disposals Increase/ldecreasel in market value 5.082.1144 415,385 1470.1041 560.116 5,179,646 833.996 1821,0951 1110,5031 At end of year Cash held by the investment manager 5.587,441 294.675 5,082,044 240,173 5.882,116 5,322,217 Further anaSiS of this is shown in note 22. 24
Harrison and Potter Trust NOTES ON THE ACCOUNT5 (continued) Year ended 31 December 2021 14 Debtors 2021 2020 Due within one year. Rent and seNice char8e5 due Bad debt provision Other debtors and accrued income 33.384 127,5741 23,448 29,258 31,974 124,2811 23,157 30,850 15 Current asset investment 2021 2020 Charities OffKial Investment Fund Dewsit 345,642 345,642 552,058 552.058 16 CdItOrs. amounts falli due within one year 2021 2020 Trade creditors Prepayments of rent and ser¥ice charges Other creditor5 and accruals 35,025 18,728 46,528 IIXJ,281 207,412 15,485 40,027 262,924 The Trustees policy for payment of purchase Invol is one month between receipt and payment {2020: one monthl. 17 Transfer ol assets In 2019, a transfer of net assets lotalling £6,673.018 was made from HaThison and Potter Trust lunincorporatedl to Harrison and Potter Trust ICIOI. This transfer was accounted for under the merger accountin8 method and the comparative amounts are prepared as if the assets had always been held by the CIO. 25
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2021 18 Analysis of Charitable funds Balance I January Incoming Resources Gains on 2021 resources expended in¥e5tments Funds 31 December 2021 Transfers Unrestrlrted funds General nd ReValuatn serye 5.663.717 314.535 479.127 {465,4191 485.616 25.() 169,6281 6,093,413 339.535 Designated extraordrnary repair fund Oesignated cyclical maintenance fund Total designated funds 407,588 74.5 26,416 508,504 257.333 664.921 143,2121 143.2121 43.212 69,628 257,333 765,837 74.5 Total unrestrlrted funds 6.643,173 479,127 1508.6311 585,116 7,198.785 Pemiènentty endowed almshouses Totsl restrirted fdS 369,693 369,693 117.1921 117.1921 352,501 352,501 Total funds 7.012.866 479,127 1525.8231 585,116 7.551,286 During the year transfers from the general fund were made to the designated funds of £69.6281£26,416 to the extraordinary repair fund and £43,212 to the cyclical rnaintenan fundl in order to fund future repairs and maintenance at the almshouses. The designated extraordinary repair fund is used for any future extraordinary repair, improvement or rebuildlng of the almshouses. The designated cyclical maintenance fund is used forthe ordinary maintenance and repair of the almshouses. This fund is to be utilised over the short tem) and in 2021, £17.531 of void paIrS expenditure12020: £29.0961 has been allocated to the fund and £25,681 of day to day repair5. Pursuant to the Scheme effective 31 December 2019, Harrison and Potter Trust (unincorporated charity) cannot hold expendable property free to use without reStriCtn and therefore the restricted fund represents the tarrying value of the almshouses which belong to HarrIn and Potter Trust (unincorporated charity) a linked charrty. For more detail see note 21. The Stricted expenditure above represents the depreciation charge on the two alrnshouse properties in 2021. As detailed in note 22 the investments are split between various funds. 20
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2021 19 Analysis of net assets between funds General Deggnated Restricted funds fvnd funds Totsl Fixed assets Cash at bank and in hand Other net current assets 6.025.1 133,139 274,619 508,579 257,258 352.501 6.886,270 390,397 274,619 Total 6.432,948 765,837 352,501 7,551,286 General fund Designated Restricted funds funds Total 2020 Fixed assets Cash at bank and in hand Other net current assets 5.552,537 105,731 319,984 407,663 257,258 369,693 6,329,893 362,989 319,984 Total 5.978,252 664.921 369.693 7.012.866 Operating lease commitments 2021 Laundry Equipment 2020 Laundry Equipment Not later than l year Laterthan l year and not later than 5 years Over 5 yea 3,110 12,442 2,333 17,885 3,110 12,442 5,443 20,995 27
Harrison and Potter Trust NOTES ON THE ACCOUNTS {continued) Year ended 31 December 2021 21 Linked Charity On 31 Dember 2019 all assets with the exception of the two almshouses We transferred from Harrison and Potter Trust lunincorporatedl to Harrison and Potter Trust ICIOI. The two almshouse sites at Lovell Park and Raglan Road continue to be held in the linked charity as Permanent Endowment. In 2020, on the basis of the charities having the same Trustees, the charities became linked. The funds of Harrison and Potter Trust lunincorporatedl are shown separatety within the fund note as penTranently endowed almshouses. Harrison and Potter Trust {unincorporatedl Charity Number- 1179665-1 Homes and Communities &gency: 224941 Total funds- £352.501 22 Irwestments Market Value 2021 2021 2020 2020 CAPITAL ACCOUNTS: Capital Fund -Government Bonds and Fixed Interest Stocks Listed Equities 947.612 2.494.788 989.992 3,915,023 988,039 3,533,714 2.644,538 3.593.046 3.442,400 4,5.015 4,521.753 Special Range.. - The Charities OffKial Investment Fund 42,052 42.052 173.847 152.628 Total account investments on capital 3,635,098 3.484.452 5,078,862 4,674,381 ERAORDINARy REPAIR FUND: The Charities Official Investment Fund 256,060 229.630 508,579 407,663 CASH HELD 294,675 240,173 294,675 240,173 TOTAL INVESTMENTS 4,185.833 3,954,255 5.882,116 5,322,217 28
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2021 Investments The investments are split between different fund$ as follows.. Capital accounts Capital Account- This is unrestrirted Special Range- This is unrestricted Income accounts Extraordinary Repair Fund - This was created by a Scheme,. funds are set aside each year from the income of the Charity and invested in units. The fund is designated in that although it can be spent. it must be spent on "extraordinary repair" 23 Net cash from operating artivities 2021 2020 Net income for the reporting period before gèinslllosses) on investments Adjusted for- Depreciation of housing properties Depreciation of other tangible fixed assets Decrease in debtors IDecreasel/increase in creditors Investment income 146.6961 63,467 17,192 17,191 41,258 38,926 1,592 4,369 1162,6431 167.474 1135.6651 1180,3121 Net cash Iu5ed inllprovided by operating activities 1284,9621 111,115 29