Harrison and Potter Trust Trustees, Annual Report and Financial statements for the year ended 31 December 2022 Reglstered Charity No: 1179665
Harrison and Potter Trust FINANCIAL STATEMENTS Year ended 31 December 2022 CONTENTS Page No: OfFicers and Charity infomiation, Including reference and adminlstrative details Report of the Trustees Statement of Trustees. Responslbllities and Trustees, Approval Audit Report statement of Financial Activities lincorporating 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 2022 Reference and administrative detsils TRUSTEES Mr M C Andrews Ichaimianl Dr l A Blomfield Mrs G M Cartwright Mr N A Walnman Mr J Campbell Mr M A Payne Mrs S M Hi8gs Mrlwshaw Mr M J Wilson BANKERS NatWÈst plc 8 Park Row LS1 IQS Barclays Bank plc 10 Market Street Bradford BDI INR INVESTMENT MANAGEMENT Investec Wealth & Investment Ltd 4th floor Wellington Place Leeds ISI 4AP ALMSHOUSE MANAGEMENT 54 North Homes (formerly Leeds and Yorkshire Housing A5SOtiationl 3rd Floor White Rose House 8 Otley Road Headingley Leeds LS6 2AD AUDITOR Saffery Champness LLP Mitre House North Park Road nd(IU¥dL HG15RX REGISTERED OFFICE c/0 Wrigleys Solititors LLP 3rd Floor 3 WellSngton Plate Leeds Lsi 4AP REGISTERED CHARITY NUMBER 1179665 SUBSIDIARY HOMES AND COMMUNITIES AGENCY NUMBER A1920
Harrison and Potter Trust REPORT OF THETRUSTEES Year ended 31 December 2022 The Trustees present their annual report together with the financSal statements for the year ended 31 December 2022. The financial statements comply with the Charities Ad 2011 and Accounting and Reporting by Charities- Statement of Recommended Practice 2019 applicable to charities preparlng thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191- OBJECTIVES AND ACTIVITIES The objects of the CIO are two fold being the provision of almshouses and the relief of financial hardship. The CIO carries out these objects by.. maintainlng almshouse developments at Lovell Park Road and Raglan Road In Leeds. providing grants to organisations and to projects in Leeds which alleviate financial hardship, particularly in relation to housing. The Trustees reco8ni5e their dutie5 under the Charities Art 2011 and have referred to the Charity Commission's guidance on public benefit when reviewing the Charity'5 actNitie5 and compiling thi5 report. The attivtties described above, and explalned In more detall in the following sectlons, are consistent with the CIO'S values and aims which, in turn, derive from its charitable objects. Almshouse policy The almshouse operation aims to provide comfortable and well maintained accommodation in plèasant surroundings. Accommodation at the almshouses comprise thirty two bedsits suitable for single occupancy and two 2 bedroomed flats at Lovell Park Road and eighteen houses/flats suitable for single occupancy or for couples at Raglan Road. To be eligible, applicants must be in financial hardship and resident in Leeds, although up to twenty persons can be appointed who are resident within a twenty mile radiu5 of the Clvlc 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 54 North Homes, who report regularly to the Trustees. The weekly maintenance contribution paid by resident5 is set annually in actordante with national guideline5. The almshouse operation is largely self-fundin8. Grant making policy The CIO has established its grant making policy to achieve its objects for the public beneflt, subject however to the geographical restraints imposed by the founding Scheme. Under the terms of the CIO'S Scheme, the individuals supported by organi5ations must be resident in the City of Leeds.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2022 The Twstees Snvite applications from locally based charities with local projects aimed at either the prevention or allevlation of financial hardshlp. Prolects include debt counselling, provlsion of housing and purchase of equipment. Grants are not made towards general runnlng costs including salaries- nor can the charity commit to repeat grants. ACHIEVEMENTS AND PERFORMANCE The CIO has 2 princlpal alms: l. The maintenance and provision of shettered supported living units at Lovell Park and Raglan Road These are available to anyone over 55 years of age who is in financial hardship and needlng sotially supported living. Followlng the transfer of the operations of the two almshouses, Lovell Park and Raglan Road to the CIO the CIO seeks to maintain the standard of the almshouses following thelr refurbishment in 2010111. The CIO has sought to maintain this good standard accommodation through focused input particularly drawing on the individual ski115 and knowledge of Trustees. The day to day review of the properties and the provision of the soclal support are provided by the Managing Agent 54 North Homes. Overall occupancy Is hlgh and volds are actively advertised by 54 North Homes. 2. Grant making to local Charltles These are made wSth surplus funds from investments that have not been required by the charity for the properties. The Trustees have chosen to largely support a network of charrties, unique to Leeds, who support the elderly population in the communities with particular emphasis on social isolation and hardship. They are endeavouring to Improve quality independent life in their local communities. Grants are made for facilities, projects and activities, not for Staffing and recurring costs. Grants to the total of £39,457 12021- £40,857) were made in thi5 financial year. Investment performance Durlng 2022 equlty indices tlosed at their highest level on the fi'rst tradlng day of the year and suffered a series of declines before finding some sort of floor in October. November dellvered a second consecutive month of gains for balanced investors. And whereas the positive correlation between equities and bonds hèd been a decline for the first nine months of the year, 5t changed to more of a tallwind with both assets gaining ground. This was evidenced wlthln the portfolio which fell 11.3% up to the end of September but managed to regain some of the loss with an increase of 3.8% from October to December. As we look closer at the portfolio, the initSal fall In performance can be attributed to a number of equities LEnderperforming during th@ first nine months of the year. River and Mer¢antile145.9%1, Axa UK MSd Cap1-31.5%1, Franklin Templeton UK Mid Cap1-30.7%1 and Prudential1-29.9%1 are several which struEgled durlng 2022 but retumed 16.3%, 9.9%, 12.7% and 26.4% respectNely in the final quarter of the year.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2022 Bond yields continued to fall towards the end of the year. At its worst in October, the Bloomberg Global Aggregate Index (which accounts for the whole investment grade marketl, was down more than 25% from its peak at the beginning of 2021 and down almost 22% durlng 2022. A respectable recovery of 9% still leaves us moving in the right direction. Fixed Interest holdings followed a similar pattern to equities. Royal London Sterllng Credlt fell 22.3% and then returned 5.1% as an example. The persistence of higher inflation was the defining factor of the past year. disruption from the Covid pandemic was a culprit, with supply chains thrown into disarrayi but that should eventually normalise. Another driver of optimism arose is the expectations of a broader re-opening of the Chinese economv within the next few months a rising. Therefore, the plan is to continue to increase equity risk in portfolios rather than reduce it at this sta8e in the cycle. Flnan¢ial review During the year the CIO continued to operate almshouses at Raglan Road and Lovell Park Road on a broadly self-funding basis and to make @rants to individual resident5 and to local charitable organi5ation supporting those in financial need. Net expenditure for the year was £822,86812021'. net income £538.4201. Loss on investments for the vear, inclu(led withln the net expenditure for the year, amounted to £585,045 12021- gains of £585.1161. A detailed survey was Carried out on the sites at Lovell Park and Raglan Road in the prior year. This highltghted the need for major repair and maintenance expen5e5 at both sites. This resulted in unusually high repair and maintenante expenditure in the year of £372,40612021-. £132,999). Transfers of £69,628 12021.. £69,628), were made to designated reserves from the general fund in connection with the housing propertie5 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-term objectives of the charlty. The charity's restricted reserves consisted of the Permanent Endowment represented by the two Almshouses at Lovell Park and Raglan Road in Leed5. In the prior year the permanent endowment on investments was lifted and the tot31 funds were transferred to the unrestricted reserves. The permanent endowment on the Almshouse sites remains. The Designated funds amounting to £505,700 at 31 December 2022 are in line with the guidance provided by the Almshotjse Association "standards of management" and a considered by the Trustees to be at an appropriate level. The group'5 total re5erve5 amount to £6,728,418 at 31 DecerTiber 2022, wsth £6,393,109 held within the CIO. Within this the Trustees have conSided the level of free reseNes of the charity which amount to £1,385.844. Free reserves include cash held on short term deposit with the investment managers of £238,756. In setting the level of reserves the Trustees take Into account the need to keep
Harrison and Potter Trust REPORT OF THE TRUSTEES Icontinuedl Year ended 31 December 2022 operating should the charity suffer a loss of Income or should operations be disrupted in determining the level of unrestricted fund5. The Trustees also have regard to the likely cost of updatlng the properties and investing in fixed assets and to be able to withstand adverse events that can be reasonably foreseen. The Almhou5e5 are likely to require addttional capital expenditure going forward as the Almhouses become older. Given all these conslderatlons and the fart that the Trustees have designated funds of £505,700 for ad-hoc maintenance and extraordinary repairs, in addition to the free reserves, the Trustees are of the view that the level of free reserves are at an appropriate level to enable the CIO to meet its objectives and actwities in the future. Risk fa¢tors The Trustees have assessed the major risk5 to which the CIO is exposed and are satlsfied that systems are in place to mitigate exposure to the malor risks. The Trustees maintain a Risk Reglster whlch Is discussed at the quarterly meetings of trustees and updated as necessary. Value for Money The Trust is committed to achieving Value for Money IVFMI and to focus on embeddlng good practice into the whole Trust. The trustees have adopted a Value for Money strategy which i(lentifies the ambitions of the trust to move towards a transformational approach to VFM. VFM has been defined as the relationship between economyi efficiency and effectiveness. VFM is high when there 15 an optimum balance between all three: relatively low cost, high productivity and successful outcomes. VFM 15 about running a viable social business and lookingto continually improve VFM activbties have the following objectlves at all levels and functlons withln the Trust. To embed the VFM strategy and continuous improvement in the organisation's culture To adopt further good prartice 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 2022 VFM Metric$ l- Reinvestment percentage INew investment in properties as a percentage of total properties held) 2022 2021 7.6% 2A- New supply delivered Ipercentagel (New social housing units developed as a percentage of Social housing units heldl NIA NIA 2B- New supply delivered Inon-social housing unitsl (Non-social housing unlts developed as a percentage of total housing units owned) NIA NIA 3- Gearing percentage (Loans less cash as a % of the value of housing propertiesl NIA NIA 4- EBITDA MRI interest cover percentage NIA NIA 5- Headllne social housing cost per unit (Social housing costs excluding depreciatlon dlvlded by social housing units owned) £11,618 £7,491 6A- Operating mar8in Ioperatlng gurplus as a percentage of turnover from social housing lettings) -93% -31% 6B- Operating margin overall (Operating surplus as a percentage of turnoverl -62% -22% 7- Return on capital employed IROCEI percentage Ioperatlng svrplus as a % of total assets less current liabilities) -1% PLANS FOR THE FUTURE The Charity plans to continue the activities outlined above and no material change is anticlpated in the way the almshouse operatloll 15 managed in the next financial year. The Charity intends to continue to make grant5 as part of its charitable actwities during 2023 at a similar level. The Charity has continued to look Into options regarding the Lovell Park site. Currently. the Trustees are working with architects as to ways in which the site could be redeveloped in a way that would provide addltional units. In addition, the Trustees will be considering adoption of modern construction methods to ensure low energy use and the provision of facilities appropriate to the aims of the Charity.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2022 STRucfuRE, GOVERNANCE AND MANAGEMENT The Harrison and Potter Trust Is a charitable 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 activitie5 of Harri50n 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. The linked Charity. Harrlson and Potter Trust Charity Number 1179665-1. is registered with Homes and Communities Agency A1920. The CIO Harrison and Potter Trust Charity Number 1179665 Is not registered with Homes and Communitie5 Agency. It is the intention of the Trustees to apply for registration othe CIO as soon as 15 practicable. The body of Trustees comprises a maximum of eleven persons; minimum of four persons. Other than the orlglnal trustees appolnted on 24 August 2018, new trustees are appointed for a term of 3 years, after which period, they may put themselves forward for reappointment. The Trustees meet quarterly in Februaryi May August and November and at the February meeting elect a Chairman for the forthcoming year. The meetings in May and November focus primarily on financial and irbvestment matters including annual accounts, budget5 for the almshouse operations, Investment performan and fundlng available for grants. The almshouse operation and welfare and needs of the residents of the almshouses are reviewed with the managing agents at the quarterly meetlngs. To assist the day to day admlnistratlon of the CIO, there is a finance and investments sub-committee. In addition, individual Trustees liaise with the managing agent5 regarding welfare or property matters throughout the year. All Trustees give of their time freely and no Trustee remuneration 15 paid. Trustee5 are appointed by a resolution of the exlsting Trustees passed at a special meeting. On 16th July 2021 the trustees entered into a new almshouse management agreement wlth 54 North Homes. This supersedes the previous ageMEnt entered into on 22nd May 2014. This agreement sets out in detail the management sèrvlces to be provided by 54 North Homes in relation to the The agreement 15 subject to review on an annual basis. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR The Trustees who were in offlce on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustee5 ha5 confirmed that they have taken all the steps that they ought to have taken as Trustees in orderto make themselves aware of any relevant audit information and to establish that it ha5 been communicated to the auditor.
Harrison and Potter Trust REPORT OF THE TRUSTEES (Continuedl Year ended 31 December 2022 STATEMENT OF THE RESPONSIBILITIES OF THE TRUStEES The Trustees are responsible for preparlng the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generalty Accepted Accounting Practice). Charity law, in England and Wales, require5 the Trustees to prepare financi315tatements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charlties SORP IFRS1021; make judgernents and estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, Subject to any material departures disclosed and explained in the financlal statements- and prepare the financial statements on the going concern basis unless it is inappropriate to pre5umo that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial p051tion of the charity and enable them to ensure that the financial statements compty with the Charities Act 2011 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 irregularSties. This r ort was ap 2 May 2023 oved by the Trustee5 on........................ Mr N Wainman Trustee Mr J Campbell Trustee
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES Year ended 31 December 2022 Oplnlon We have audited the financial statement5 of Harrison and Potter Trust for the year ended 31 December 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and note5 to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in thè UK and Republic of Ireland (United Kingdom Gerkerally Accepted Accountlng Practicel- In our opinion the financial statements.. give a true and falr view of the state of the charitVs affair5 as at 31 December 2022 and of Its incoming resources and application of resources for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordance with the iequirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilitie5 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 audSt of the financial statement5 in the UK, including the FRCS Ethical Standard. and we have fulfilled our other ethical responsibilities 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. Conclusions relating to going Concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the flnanclal statements is appropriate. Based on the work we have performed, we have not identifSed any material uncertainties relating to events or conditions that, indivldually or collectively, may cast significant doubt on the charity'5 abilwty to continue as a going concern for a period of at least twelve months from when the financial SLdLtiiiétli> thUiII¢iI Ij¥V IVI lj>iif. Our responsibilities and the responslbilltles of thetru5tees with respectto going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information Included in the annual report, otherthan the financial statements and our auditorfs report thereon. Our opinion on the flnancial statements does not coverthe other information and, except to the extent otherwise explicitly stated in our report, we do not expres5 any form of assurance conclusion thereon.
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES Icontinuedl Year ended 31 December 2022 Our responsibility is to read the other information and, in doing 50, conslder whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially mi55tated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statenients themselves. If, based on the work we have performed, we conclude that there is a material migstatement of this other information,. we are required to report that fart. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Chartties (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the Trustees, Annual Report is inconslstent In any material respect wlth the financial statements: or the charity has not kept sufficient accounting records,. or the financial statements are not in agreement with the accounting records and returns,. or we have not recelved all the information and explanations we requlre for our audit. Responsibilities 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 and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statementg, the trustees are responsible for assessing the charity's ability to continue as a going concern, di5c105inB, as applicable, matters related to going concern and using the going cOnrn basis of accounting unless the trustees either intend to liquidate the charity orto cease operations, or have no realistic alternative but to do 50. Auditors, responsibillties for the audlt of the financial statements We have been appointed as auditors under the Charftles Act 2011 and report in accordance with regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is r>ot a guarantee that an audit conducted in accordan with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. io
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES Icontinuedl Year ended 31 December 2022 Irregularities. including fraud. are instances of non-compliance with laws and regulations. We desi8n procedure5 in line with our responsibilities. outlined above, to detect material mi5Statements In respect of irregularities, including fraud. The specific procedure5 for tliis en8a6eiiieiil aiia iliv ¥xlEwiL to which these are capable of detecting irregularities, induding fraud are detailed below. Identifying and assessing risk5 related to irregularities.. We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meetingi updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of SiEnificance in the tontext of the charity by dlscusslons with trustees and updating our understanding of the sector In which the charity operates. Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulatkons 2008 and guidance issued by the Charity Commission for England and Wales. Audit response to risks identified.. We considered the extent of compllance wlth these laws and regulations as part of our audit procedures on the related flnancial statement items including a review of financial statement disclosures. We reviewed the charity's records of breaches of laws and regulation5, minutes of meetings and correspondence with relevant authorities to identify potential material rni5Statements Ari£ing Wp di.¢r.ii%%pA thp rharit¢s pnliripE xnd procediires for compliance with 13ws and re8ulations with members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any artual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any slgniftcant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimate5 gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partnerfs review included ensuring that the team had approached their work with appropriate professional scepticism an(1 thus the tapacity 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 events and transattions reflected in the financlal statements. the less likely we would become aware of it. A150, the risk of not detecting a material mi55tatement due to fraud is hlgher 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 furthp.r Ag%rriptinn nf nijr rpf pnnE4hilitipg IE Available on the Financial Reportine Coun¢il'5 website at- www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. il
Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THETRUSTEES Icontinuedl Year ended 31 December 2022 Use of our report This report is made solelyto the charitvs trustees, as a body, In accordance with Part 4 of the Charities (Accounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might state to the trvstees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the charity and the trustees as a body, forour audit work, for this report, orforthe opÉnions we have formed. [.fvx CJNfy4w-W Saffery Champne55 LLP Statutory Audwtors Mitre House North Park Road Harrogate North Y0rh1re HGI SRX Date: 12 June 2023 Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. J2
Harrison and Potter Trust STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating the Income and Expenditure accountl Year ended 31 December 2022 Unrestrlcred fund5 Restrirted funds Total funds 2022 Total funds 2021 Notes Income from: Charitable activities Investments Total 344,438 170,854 515,292 344,438 170,854 515,292 342,892 136.235 479,127 Expenditure on: Raising funds Charitable activities Total 31,777 704,146 735.923 31,777 721,338 753,115 33,775 492,048 525,823 17,192 17,192 Net IIos5esl/gains on investments 12,13 1585,0451 1585,0451 585,116 Net lexpenditure}Ilncome {805,6761 117,1921 1822,868) 538.420 Transfers between funds 18 Net movement In funds {805.6761 117,1921 1822,8681 538,420 Reconclliation of funds: Total funds brought foard 7,198.785 352,501 7,551,286 7,012,866 Total funds carried forward 18 6,393,109 335.309 6.728.418 7,551,286 215123 The financial statements were approved by the Trustees on.............. and signed on their behalf by- Mr N Wainman Trustee Mr J Campbell Trustee The notes on pages 16 to 29 fom) part of these accounts. 13
Harrison and Potter Trust BALANCE SHEET as at 31 December 2022 Note 2022 2021 Fixed assets Tangible asset5 Investment properties Investments li 12 13 598,851 345,000 4,637,479 659,154 345,000 5,882,116 Total fixed assets 5,581.330 6,886,270 Current assets Debtors Investments Cash at bank and in hand 14 15 38.481 799,226 750,806 29,258 345,642 390,397 Total wrrent assets 1.588.513 765297 Credltors: Amounts falling due within one year 16 1441,425 1100,2811 r+Jet current assets 1.147,088 665,016 Total assets less current liabilities 6,728,418 7,551,286 Net assets 6.728,418 7.551.286 The funds of the charfty: Unrestrirted funds Unrestricted general funds Deslgnated funds 18 18 5,887,409 505,700 6,432,948 765,837 Total unrestricted funds 18 6,393,109 7,198.785 Restricted funds 18 335,309 352,501 6.728,418 7,551,286 215123 The financial statements were approved by the Trustees on .................... and signed on their behalf by: Mrmwainman Trustee Mr J Campbell Trustee The notes on pages 16 to 29 form part of these accounts.
Harrison and Potter Trust STATEMENT OF CASH FLOWS as at 31 December 2022 Note5 2022 2021 Cash flows (used Inl operatlng actlvltles 23 116,183) 1284,9621 Cash flows provided by investing actlvltles Purchase of tangible fixed assets Investment income IPurchasel/Disposal of current asset Investments Purchase of listed investments Proceeds from sale of listed investments Decreaselllncreasel in cash held by the investment manager Net Cash flows generated from investing activities 129,9281 170,584 135,565 {453,5841 206,416 1549,5641 1415,3851 1,153.237 470,104 55,919 154,5021 376,592 312,370 Net Increase In cash and tash equivalents in the year 360,409 27,408 Cash and cash equivalents at l January 2022 390,397 362,989 Cash and cash equlvalents at 31 December 2022 750,806 390,397 al Analysis of net funds Asatl Januarv 2022 Cash flov Asat31 December 2022 Cash at bank and in hand 390,397 390,397 360,409 360,409 750,806 750.806 JJ
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 ACCOUNTING POLICIES BASIS OF ACCOUNTING These flnancial statements have been prepared under the historical cost convention, as modified by the revaluation of investments and investment properties, in accordance with Accounting and Reporting by Charitie5.' 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 Charitles Act 2011. Harrison and Potter Trust ICIOI meet the definition of a public benefit entity under FRS 102. On 31 December 2019, all of the assets of Harrison and Potter Trust were transferred into Harri50n and Potter Trust ICIOI with the exception of the Almshouse5. which are pemianently endowed and remain Harrison and Potter lunincorporatedl. This transfer was accounted for under the merger accounting method and the comparative amounts have been presented on the same basis in accordance with ihe Charitie5 SORP IFR51021. In 2020 Harrison and Potter CIO and Harrison and Potter luniJ)corporatedl became linked charities. This ha5 been accounted for under the branch accounting method in accordance with the Chèrities SCIRP 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'5 resosjrces including the adequacy of working capital for the next twelve months. The Trustees are satisfied 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 finan¢ial statements. SOCIAL HOUSING GRANT Social Houslng Grant ISHGI is paid by the Housing Corporation to reduce the cost of development and is recognised as income on receipt and completion of the project to which it relates. SHG is repayable under certain circumst3nce5i primarily following the sale of a property but will normally be restricted to net proceeds of sale. A Social Housing Grant of £675.042 wa5 received in connection to the refurbishment of Raglan Road and was recognised In unrestrlrted reserves. Should a triggering event occur, thls amount would be repayable by Harrison and PotterTrust lunincorporatedl la linked charity, charity number.. 1179665-11. TheTrustees have obtalned confirmation from Homes England that the transfer of almshouse operations to Harri50n and Potter Trust CIO was not a triggering event subject to Harrison and Potter Trust lunincorporatedl (charity number.. 1179665-11 remaining a Registered Provider. 16
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 ACCOUNTING POLICIES Icontinuedl FIXED ASSETS- HOUSING PROPERTIES Housing properties are stated at cost which includes the following: cost of acquiring land and buildings.. development expenditure. Works to existing properties are works which result in an increase in the net rental income. such as a reduction In the tuture maintenance costs, or result in a significant Èxtension of the useful economit Ilfe of the property in the Trust. Only the direct overhead costs associated with these improvements are capltalised. FIXED ASSETS- OTHER Othertanglble fixed assets are stated at cost with the exception of property held for investment purposes. DEPRECIATION Housing properties Housing properties are depreciated at a rate of 2% per annum on cost. The depreclatlon on the 2 almshouse propertie5 15 charged to Festricted funds. Land 15 not depreciated. Investment propertie5 Investment properties are not depreciated. Other fixed assets Depreciation is provided on the following base5- Heating 5VStems- 6.67% per annum on cost. Other fixture5 & fittings- 15% per annum on cost. INVESTMENT PROPERTIES Investment propertie5 are stated at their estimated value on an open market basis at the balance sheet Surveyor5 on an open market basis. No depreciation is provlded in respect of freehold investment propertles or on leasehold Investment properties where the uneXpld lease term exceeds 20 years. Details of the currentvalue and historical cost information for investment properties are given in note 12. 17
Harrison and Potter Trust NOTES ON THE ACcOUs Icontinuedl Year ended 31 Decernber 2022 ACCOUNTING POLICIES Icontinuedl INVESTMENTS 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 15 included in the balance sheet under either creditors or debtors as appropriate. COIF FUNDS IN CURRENT INVESTMENTS COIF fvnds are included within current investments as they are a cash deposit with a maturity date of le5S than one year which is held for investment purp05e5 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 to the Trustees. reserves policy. The Fund 15 maintained by annual transfer out of the CIO'S income and used to cover items of extraordinary repair. CYCLICAL MAINTENANCE FUND The Cyclical Malntenance 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 Énfrequent inteNals. RESTRICTED FUND5 These are funds that can only be used for particular restricted purpose5 WTthin the objects of the charity. Restrictions arise when specified by the donor or when the funds are raised for particular restricted purposes. INCOME Income represents income from social housing lettings, investment income and surpluses on disposal of investments. Credit is taken for social housing letting income as it falls due. Investment income is credited to the income and expenditure account on a receivable basi5. APPORTIONMENTOF MANAGEMENT EXPENSES Direct employee, administration and operating costs have been apportioned to relevant sections of the income and expenditure account on the basis of actual expenditure. Flnance and administration costs are further apportioned on the basi5 of estimated tirne spent on each activity. 18
Harrison and Potter Trust NOTES ON THE ACcOUs (continued) Year ended 31 December 2022 ACCOUNTING POLICIES Icontinuedl GRANTS PAYABLE Grants payable are recognised at the point at which they are approved and the recipient is notrfied. Where the Trust has agreed to make a grant payment in the future to a specific recipient this is accrued as expenditure. TAXATION For taxation purposes the Trust has charity status and accordingly is exempt from tax on its investment nd rental income and on its capital gain5. VALUE ADDED TAX The Trust is not registered for Value Adtled Tax and expenditure 15 shown indu5ive of VAT in these fsnancial statements. FINANCIAL INSTRUMENTS The charrly onty ha5 financial assets and financlal liabllities of a kind that qualify as basic financial instruents. Basic financial instruments are initially recognised at tran5artion value and subsequently measure at their settlement value. DEBTORS Trade and other debtors are recognised at the settlement amount due after any trade dlscount offered. Prepayments are valued at the amount prepared net of any trade discounts due. CREDITORS AND PROVISIONS Creditors and provisions are recogni5ed where the charity has a present obliEation resulting 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 reliabty. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. vrEr¥M J II¥4J LE1[ LVIVII¥II I IVICIY I) Rent315 payable underoperating leases, Whe substantially all the risks and reward5 of ownership remain with the lessor, are charged to the statement of financial activities in the year in which they fall due. 19
Harrison and Potter Trust NOTES ON THE ACCOUNTS {continuedl Year ended 31 December 2022 ACCOUNTING POLICIES Icontinuedl CRITICALACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Charit$ accountlng 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 htOrICal experience and other factor5 that are considered to be relevant. Actual results may differ from these estimates. The estimate5 and underlying assumptions are revlewed on an ongolng basis. Revislons to accounting estimates are reco8nised in the period in which the estimate is revised whether the revisions affects only that period, or in the period of the revision 3nd future periods where the revision affects both current and future periods. Comparative SOFA Unrestrirted funds Restrlrted Total funds fund5 2021 Income from: Charitable activities Investments Total 342,892 136,235 479.127 342,892 136,235 479.127 Expenditure on.. Raising fund5 Charitable artivitie5 Total 33.775 474,856 508.631 33,775 492,048 525,823 17,192 17,192 Net gain51 IIOsse5lon investments 585,116 585,116 Net lexpenditure)l income 555,612 117,1921 538,420 Tr3n5fer5 between funds Net movement In fvnds 555,612 117,1921 538,420 Reconciliation of fund5: Total funds brought forward 6,643,173 369,693 7,012,866 Total fvnds carried fonvard 7.198,785 352,501 7,551,286 20
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2022 Income from charitable activltles 2022 2021 Income from social housing lettings 344,438 342,892 Investment Income 2022 2Q21 Interest and dividend5 from investment portfolio Rent81 income from rented land 165,854 5,000 170,854 131,235 5,000 136,235 Expendlture of ralslng lunds 2022 2021 Investment management fees 31,777 33,775 Analysis of expenditure on charitable arttvitles Social housing letting5 Provlslon of grants Totsl 2022 Total 2021 Mana8emerbt costs Depreciation Bad debts Setvice costs Routine maintenance Planned maintenance Support costs Vouchers for residents (note 71 Grants to external bodies (note 71 95,753 60,303 11,5931 109,378 359,340 13,066 28,784 95,753 60,303 11,5931 109,378 359,340 13,066 28,784 16,850 86,925 58,450 3.293 125.525 115,469 17,530 40,799 3,200 16,850 39,457 39,457 40,857 665,031 56,307 721,338 492,048 Included in the above Is a £17,192 12021- £17,192) depreciation charge of the Almhouses whith is restricted. Governance costs included in support costs: 2022 2021 Audit and accountancy Legal fees Clerk to the Trustee5 13,260 12,756 5,802 20,309 38,867 13,291 26,551 21
Harrison and Potter Trust NOTES ON THE AccourS (continued) Year ended 31 December 2022 Analysis of grants made 2022 2021 Vulnerable peDple and the homeless Support to the over 60,5 Resident food vouchers Grant to residents 22.777 16,680 3,850 13,000 56,307 23,080 17,777 3,200 44,057 All grants were made to Charitable organisations or beneficiaries in furtherance of the Charitls objectives. Net incomellexpenditurel for the year This is stated after charging.. 2022 2021 Depreciation of housing properties Depreciation of other tangible fixed assets Operating lease rental Auditorfs remuneration Current year: for audit Services for non-audit seICe5- accountanry 17,192 43,111 3,379 17,192 41,258 3,110 12,960 2,280 8,640 4,320 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel The employees have their contracts of employment with 54 North Horn. 2022 2021 Employee costs during the year.. Wage5 and Salaries 38,640 38,696 None of the Trustees lor any persons connected with them) received any remuneration durlng the year. Travel and SL¢b5iStence expenses amounting to £nil were reimbursed to the Tru5tees12021.' £nill. No employee YeceNed emoluments of more than £60,CKJO during the current or preceding year. 22
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 10 Staff numbers The average month number of employees lincluding part-time staffj during the year was as follows.. 2022 No. 2021 Average number of employees 11 Tanglble flxed assets Freehold land and bulldings Lovell Park Road Heating Systems Fixiures & Fittings Raglan Road Total Cost/Valuation C05t bld Additions Disposals Revaluation Cost clfwd 719,326 146,115 605,644 142,029 1,613,114 719,326 146,115 605.644 142,029 1,613,114 Depreciation Depn b/fwd Charge for the year Disposals Revaluation Depn c/fwd 451,232 14,387 61,708 2,805 333,603 38,579 107,417 4.532 953,960 60,303 465.619 64,513 372,182 111,949 1.014,263 NBV cllwd 253,707 81,602 233,462 30,080 598.851 I¥DV IJIIWrfU Loo,v?* At 31 December 2022 the Harrison & Potter Trust owned and managed 52 units 12021: 52 unitsl of housing accommodation. All 52 units represented supported housin8 and housing for older people. 23
Harrison and Potter Trust NOTE5 ON THE ACCOUNTS Icontinuedl Yearended 31 December 2022 12 Investment properties Freehold Land at Barwick in Elmet Valuation At l January 2022 Revaluation 345,000 At 31 December2022 345,000 Net Book Value At 31 December 2022 345,000 At l January 2022 345,000 This parcel of land was revalued on an existing use basis at £345.000 by Bartle & Son, Valuer5 & Auctioneer5, as at 31 December 2021 and this value was in¢orpor8ted into the financial statements at that date. The original cost of thi5 land is £5,465. The Trustee5 have reviewed this valuation at the year- end and consider it to remain appropriate. 13 Investments 2022 2021 At market value: At beginning of year Additions Disposal proceeds IDecrea5el/increa5e in market value 5,587,441 549,564 11,153,236) 1585,0461 5,082,044 415,385 1470,1041 560,116 At end of year Cash held by the investment manager 4,398,723 238,756 5,587,441 294,675 4,637,479 5,882,116 Further analysis of this is shown in note 22. 24
Harrison and Potter Trust NOTES ON THE ACCOUNT5 Icontlnuedl Year ended 31 December 2022 14 Debtors 2022 2021 Due wh1n one year.. Rent and service charges due Bad debt provision other debtors and accrued income 29,940 124,7151 33,256 38,481 33,384 127,5741 23,448 29,258 15 Current a55et investmènt 2022 2021 Charities Official Irbve5tment Fund Deposit 799,226 799,226 345.642 345,642 16 Credltors: amounts fallin8 due within one year 2022 2021 Trade creditors Prepayments of rent and service charges Other creditors and accrvais 41.326 27,174 372,925 441,425 35,025 18,728 46,528 100,281 The Trustee5 policy for payment of purchase invol5 is one month between receipt and payment 12021- one monthl. 17 Transfer of assets In 2019, a transfer of net assets totalling £6,673,018 was made from Harrison and Potter Trust lunincorporatedl to Harrison and Potter Trust ICIOI. This transfer was accounted for under the merger accouniing metnoa ana tne comparative arnounis are preparea as IT ine assei5 nao alway5 [erE neiti oy the CIO. 25
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 18 Analysis of charitable fund5 Balance I January Incomlng 2022 resources Funds 31 December 2022 Resources L0$5e5 on expended investments Transfers Unrestricted funds General fund Revaluation reserve 6,093,413 339,535 511,423 1422,8571 1564,4771 169,6281 5,547,874 339,535 Designated extraordinary repair fund Designated cyclical maintenance fund Total designated funds 508,504 3,869 1300,0001 120,5681 26,416 218,221 257,333 765,837 113,0661 1313,0661 43,212 69.628 287,479 505.700 3.869 120,5681 Total unrestrlrted funds 7,198,785 515,292 1735.9231 1585,0451 6,393,109 Permanently endowed almshouses Totsl restricted funds 352.501 352,501 {17.1921 {17,1921 335,309 335,309 Total funds 7,551,286 515,292 1753,1151 1585,0451 6,728,418 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 maintenance fund) in order to fund future repairs alld maintenance at the almshouses. The designated extraordinary repair fund is used for any future extraordlnary repair. improvemerit or rebuilding of the almshou5e5. Dye to the significant repairs in year the trustees agreed to utili5e the find for £300,000 of repairs. The income is interest on the COIF Deposit apportioned based on the brought forward value of the fund. The designated cyclical maintenance fund is used forthe ordinary malntenance and repair of the almshouses. This fund is to be utilised overthe short term and in 2022, £13,066 of void rep)ir5 expenditu1202l.. £17,531) has been allocated to the fund. In 2021, £25,681 of day to day repairs were also added to this fund. Pursuant to the Scheme effective 31 December 2019, Harrison and Potter Trust (unincorporated charity) cannot hold expendable property free to use without restriction and therefore the restricted fund represent5 the carrying value of the almshouses which belon8 to Harrison and Potter Trust (unincorporated charity) a linked charlty. For more detail see note 21. The restricted expenditure above represents the depreciation charge on the two almshouse properties in 2022. As detailed in note 22 the investments are split between various funds. 30
Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued} Year ended 31 December 2022 19 Analysis of net a$sets between funds General fund Designated Restricted funds funds Totsl Fixed assets Current asset investments Cash at bank and in hand Other net current assets 5.246,021 581,005 463,327 1402,9441 335,309 5.581,330 799,226 750,806 1402,9441 218,221 287,479 Total 5,887,409 505,700 335,309 6,728,418 Generdl fund Designated funds Restricted funds Total 2021 Fixed a55ets Current asset investments Cash at bank and in hand Other net current asset5 6,025,190 345,642 133,139 71,0231 508,579 352.501 6.886,270 345,642 390,397 171,0231 257.258 Total 6,432,948 765,837 352.501 7,551,286 20 Operating lease commitments 2022 Laundry Equlpment 2021 Laundry Equipment Not later than l year Later than l year and not later than 5 years uver s years 3,110 11,664 3,110 12,442 2,333 17,885 14,774 27
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 21 LIDked Charity On 31 December 2019 all assets with the exception of the two almshouses were transferred from Harrison and Potter Trust lunincorporatedl to Harrison and Potter Trust ICIOI. The two alm5hou5e 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 charlties having ihe same Trustees, the charities became linked. The funds of Harrison and Potter Trust lunincorporatedl are shown separately within the fund note as permanently endowed almshouses. Harri50n and Potter Trust lunincorporatedl Charity Number: 1179665-1 Home5 and Communities Agency: 224941 Total funds.. £352,501 22 Fixed Asset Investsnents Cost Marf(et Value 2022 2022 2021 2021 C4PITAL ACCOUNTS: Capital Fund Government Bonds and Fixed Interest Stocks Listed Equitie5 1,008,963 2,599,376 948,508 2,644,538 903,441 3,495,282 989.992 3,915,023 3,608,339 3,593,046 4,398,723 4.905,015 Special Range= - The Charitie5 Official Investment Fund 42,052 173,847 Total investments on capital account 3,608,339 3,635,098 4,398,723 5.078,862 EXTRAORDINARY REPAIR FUND.. The Charities Official Investmet)t Fund 256,060 508,579 CASH HELD 238,756 294,675 238,756 294,675 TOTAL INVESTMENTS 3,847,095 4,185,833 4,637,479 5.882,116
Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2022 Investments The investments are spllt between different funds as follows.. Capital ac¢ounts Capltal Account- This is unrestricted Special Range-This is unrestricted, and the Investment units were sold in the year. This has subsequently been invested within the Current setS Investment Charities Official Investment Fund Deposit, see note 15. Income a¢wunts Extraordlnary Repair Fund - Within the year the trustees sold the investment units within the Extraordlnary Repair Fund. This has subsequently been invested within the Current Assets Investment Charlties Official Investment Fund Deposit, see note 15. Subject to further consideration of suitable investments by the trustees, the funds will be reinvested within a fixed asset investment account in line with the Almshouse Investment Guidance. The fijnd Is designated in that although it can be spent, it must be spent on "extraordinary repair" 23 Net Cash from operatlng activities 2022 2021 Net income for the reporting period before gainslllossesl on investments Adjusted for: Depreciation of houslng properties Depreciation of other tangible fixed assets IlncreasellDecrease in debtors Increase/{Decreasel in creditors Investment income 1237,8231 146,6961 17,192 17,192 43,111 41,258 19,2231 1.592 341,144 1162,6431 1170,5841 1135,6651 Net cash (used inllprovided by operating activities 116,1831 1284,9621 29