Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust Trustees, Annual Report and Financial statements for the year ended 31 December 2023 Registered Charity No.. 1179665
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust FINANCIAL STATEMENTS Year ended 31 December 2023 CONTENTS Page No.. Officers and Charity information, including reference and admini5trBtive details Report of the Trustees Statement of Trustees. Responsibilities and Trustees. Approval Audit Report Statement of Finèncial Activities (incorporating the Income and Expenditure Account) 13 Balance Sheet 14 Statement of cash flows 15 Notes to the Financial Statements 16
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust OFFICERS AND CHARITY INFORMATION Year ended 31 December 2023 Reference and admlnlstratlve detalls TRUSTEES Mr M C Andrews IChairm8nl Dr l A Blomfield Mrs G M Cartwright Mr N A Wainman Mrj Campbell Mr M A Payne Mrssm Higgs Mrlwshaw Mr M J Wilson BANKERS Natwest plc 8 Park Row Leeds LSI IQS Barc13ys 83nk plc 10 Market street Bradford BDI INR INVESTMENT MANAGEMENT Rathbones incorporating Investec Wealth & Investment 4th floor Wellington Place Leeds LSI 4AP ALMSHOUSE MANAGEMENT 54 North Homes (formerly Leeds and Yorkshire Housing Assoclationl Floor White Rose Hous& 8 Otley Road Headinglev Leeds LS6 2AD AUDITOR Saffery LLP Mitre House North Park Road Harrogate HGI SRX REGISTERED OFFICE clo Wrigley5 Solicitor5 LLP 3 Floor 3 Wellington Place Leeds LSI 4AP REGISTERED CHARITf NUMBER 1179665 SUBSIDIARY HOMES AND COMMUNITIESAGENCY NUMBER A1920
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OFTHE TRUSTEES Year ended 31 December 2023 The Trustees present their annual report together with the financial statements for the year ended 31 December 2023. The financial statements comply with the Charities Art 2011 and Accounting and Reporting bv Charities.. Statement of Recommended Practice 2019 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective I january 20191. OBJEcfivES AND AcfiviTIES 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= maintaining 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 tts housing. The Tru5tee5 recognise their dLJtie5 under the Charitie5 Act 2011 Bnd have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's activities and compiling this report. The artivities described above, and explained IN more detail in the following 5ection5, are con515tent with the CIO'S values and aims which, in turn, derive from its charitable objects. Almshouse pollcy The almshouse operation aims to provide comfortable and well maintained accommodation in pleasant 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 couple5 at Raglan Road. To be eligible, applicants must be in financial hardship and resident in Leed5, although up to twenty 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 54 North Homes, who report regularlv to the Trustees. The weekly maintenance contribution paid by residents is set annually in accordance with national guidelines. The almshouse operation is largely self-funding. Grant making policv The CIO has established its grant making policy to achieve its objects for the public benefit, subject however to the geographical restraints imposed by the founding Scheme. Under the terms of the CIO'S Scheme. the individuals supported by organisations must be resident in the City of Leeds.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 The Trustees invite applications from locally based charities with local projerts aimed at either the prevention or alleviation of financial hardship. Projects include debt counselling, provision of housing and purchase of equipment. Grants are not made towards general running costs including salarie5,' nor can the charity commit to repeat grants. ACHIEVEMENTSAND PERFORMANCE The CIO has 2 principal aims: l. The maintenance and provision of sheltered 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 needing socially supported living. Following the transfer of the operations of the two almshouses, Lovell Park and Raglèn Road to the Clo 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 individual skills and knowledge of Trustees. The day to day review of the propertie5 and the provision of the social 5UPPQrt are provided by the Managing Agent 54 North Homes. Overall occupancy is high and voids are actively advertised by 54 North Homes. 2. Grant making to local Charities These are made with 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 charities. unique to Leeds. who support the elderly population in the communitie5 Wlth particular emphasis 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 £46.636 12022.. £39,457) were made in this financial year. Investment performance At the year-end the portfolio was valued at £4,690,333 generating a projected annual income of £134,758 or 2.85%. The last quarter of 2023 saw high positive returns from all benchmark asset tla5ses, and thi5 has been reflected iri a positive performance on the portfolio. Over this short period the portfolio posted a pleasing total retLJrn of 5.1% which, 15 impressive in ab501ute terms but is a150 good in relative term5, beating the benchmark return of 4.68%. In the main, it has been a good year for the portfolio's returns as investments revalue into a new interest and inflation environment. Political events in Ukraine and Israel continue to dominate headlines and although both are humanitarian disasters they are, so far, contained, and localised events. As it stands, unless ten5ion5 spread, these macro events do not seem to be adding to inflation concerns through oil prices. On the advice of our investment managers, we continue to retain a slightly defensive posture on the Harrison & Potter portfolio by being modestly underweight equitie5, while continually looking for opportunities to present themselves.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 Financial 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 grants to individual residents and to local charitable organisation supporting those in financial need. Net income for the year was £231,80312022'. net expenditure of £822,868). Gain on investments for the year, included within the net income for the year, amounted to £117,538 12022.. Loss on inve5tment5 £585,0451. A detailed survey was carried out on the sites at Lovell Park and Raglan Road in 2021. This highlighted the need for major repair and maintenance expense5 at both 51tes. This resulted in unusually high repair and maintenance expenditure in the 2022 year of £372,406. Transfer5 of £75,24412022.. £69,628), were mède to designated reserves from the general fund in connection with the housing propertie5 for cyclical maintenance and extraordinary repair5. Reserves policy The policy of the Trust is to maintain suflicient capital to enable the Trustees to carry out both the short term and lon8-term objectives of the charitv. The charity's restricted reserves consisted of the Permanent Endowment represented by the two Almshouses at Lovell Park and Raglan Road in Leeds. In the prior year the permanent endowment on inve5tment5 Wa5 lifted and the total funds were transferred to the unrestricted reserves. The permanent endowment on the Almshouse sites remains. The Designated funds amounting to £585,990 at 31 December 2023 are in line with the guidance provided by the Almshouse Association '5tandard5 of management" and are Considered by the Tru5tee5 to be at an appropriate level. The group's total re5erve5 amount to £6,960,221 at 31 December 2023, with £6,642,104 held within the CIO. Within this the Trustees have considered the level of free reserves of the charity which amount to £1.381,961. Free reserves include cash held on short term deposit with the investment manager5 of £56,242. In Setting the level of reserves the Tru5tee5 take into account the need to keep operating should the charity suffer a loss of income or should operations be disrupted in determining the level of unrestricted funds. The Trustees also 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 reasonably foreseen. The Almhouses are likely to require additional capital expenditure going forward as the Almhouses become older. Given all these considerations and the fact that the Trustees have designated funds of £585,990 for ad-hoc maintenance and extraordinary repairs, in addition to the free reserves, the Trustees are of the view that the level tsf free reserves are at an appropriate level to enable the CIO to meet its objectives and activities in the future.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 Risk factors The Trustees have assessed the major risks to which the CIO is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. The Trustee5 maintain a Risk Register which 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 embedding good practice into the whole Trust. The tru5tee5 have adopted a Value for Money Strategy which identifies the ambitions of the trust to move towards a transformational approach to VFM. VFM has been defined as the relBtionship between eeonomy, efficiency and effectiveness. VFM is high when there is an optimum balance between all three.. relatively low cost, high productivity and successful outcomes. VFM is about running a viable social business and looking to continually improve VFM activities have the following objectives at all levels and functions within 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 expostjre to financial and material waste.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 VFM Metrics l- Reinvestment percentage INew investment in properties as a percentage of total properties heldl 2023 2022 2A- New supply delivered Ipercentagel (New social housing units developed as a percentage of social housing units held) NIA NIA 2B- New supply delivered Inon-social housing units) (Non-sotial housing units developed as a percentage of total housing units 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 N/A N/A 5- Headline social housing cost per unit (Social housing costs excluding depreciation divided by social housing units owned) £5,843 £11,629 6A- Operating margin (Operating surplus a5 a percentage of turnover from Social housing letting51 -1% -93% 6B- Operating margin overall (Operating Surplus 35 a percentage of turnover) -62% 7- Return on capital employed IROCEI percentage (Operating surplus as a % of total assets less current liabilities) PLANS FOR THE FUTURE The Charity plans to continue the artivities outlined above and no material change is anticipated in the way the almshouse operation is managed in the next financial year. The Charity intend5 t continue to make grants as part of it5 charitable activities during 2024 at a Similar level. The trustees are conscious that the accommodation provided to residents is in need of significant modernisation in the long term. Trustees are exploring all options, including redevelopment of existing sites or building new accommodation. Sincethe year end, discussions have continued with consultants specialising in almshouse development and funding. It is the intention of the Trustees to proceed with a planning application relating to one of the site5 during the current year. srRucfuRE, GOVERNANCE AND MANAGEMENT The Harrison and Potter Trust is a charitable incorporated organi5ation con5titLJted 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 15 a Registered ChaTlty, number 1179665-1.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 The linked Charity. Harrison and Potter Trust Charity Number 1179665-1, is registered with Homes and Comm(JNities Agency A1920. The body of Trustees comprises a maximum of eleven persons.. minimum of four persons. Other than the original trustees appointed 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 February. 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 investment matters including annual accounts. budgets for the almshouse operations, investment performance and funding available ft)r grants. The almshoLJse operation and welfare and need5 of the residents of the almshouses are reviewed with the managing agents at the quarterly meetings. To assist the day to day administration of the CIO. there is a finance and investments sub-committee. In addition, individLJal Trustees liaise with the managing agents reg3rding welfare or property matters throughout the year. A special capital projects sub-committee has been set up by the Trustees to oversee the proposed development project. All Trustees give of their time freely and no Trustee remuneration is paid. Trustees are appointed bv a resolution of the existing Trustees passed at a special meeting. On 16th July 2021 the trustees entered into a new almshouse management agreement with 54 North Homes. This agreement sets out in detail the manaEement seNices to be provided by 54 North Homes in relation to the almshouses, key performance measure5, delegation leve15 and management reporting mechanisms. The agreement is subject to review on an annual basis. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR The Trustees who were in office 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 Trustees has confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware Df any relevant audit information and to establish that it has been communicated to the auditor.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2023 STATEMENT OF THE RESPONSIBIUTIES OF THE TRUSTEES The Trustees are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generallv Accepted Accounting Practice). Charity law, in England and Wale5, require5 the Trustees to prepare financial statements 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 resoLJrces of the charity for that period. In preparing these financial statements, the Tru5tee5 are required to.. select suitable accounting policies and then apply them consistently.. observe the methtsds and principles in the Charities SORP IFRS1021', make judgements 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 financial statements,. and prepare the financial statements on the going concern ba515 unle55 It is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at èny time the financial positi(>n of the charity and enable them to ensure that the financial statements comply with the Charities Art 2011 and the provisions of the trust deed. They are a150 responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of frèud and other irregularities. 20 June 2024 This report was approved by the Trustees on...........-..-..-..-... AC2C9D411 ainman Trustee DÈ¢uSignèd by. amp Trustee
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES Year ended 31 December 2023 Oplnlon We have audited the financial 5tatement5 of Harri50n 3nd Potter Trust for the year ended 31 December 2023 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The finantial 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 Republic of Ireland (United Kingdc)m GenerallyAccepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 December 2023 and Df its incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under th()se standards ère further described in the Audit(>r's re5ponsibilitie5 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, including the FRC'5 Ethical Standard, and we have fulfilled our other ethical re5ponsibilitie5 in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusion5 relating to 8oin8 concern In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authori5ed for issue. Our responsibilities and the responsibilities of the trustees with respecttogoing concern are described in the relevant section5 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 financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Icontinuedl Year ended 31 December 2023 Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course tsf the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we eontlude that there is a material misstatement of this other information,. we are required to report that fart. We have nothing to report in thi5 regard. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respert of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require LJS to report to you if, in our opinion.. the information given in the Trustees, Annual Report is inconsistent in any material respect with the finantial ststements,. or the Charity has not kept sufficient accounting records.. or the financial statements are not in agreement with the accounting record5 and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Tru5tee5' 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 statements, the trustees are re5ptsnsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operation5, or have no realistic alternative but to do 50. Auditor< responsibilities for the audit of the financial statements We have been appointed as auditors under the Charities Att 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 mi55tatement, whether due to fraud or error, and to 155ue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Mi5Statement5 can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expetted to influence the economic decisions of users taken on the basis of these financial statements.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Icontinuedl Year ended 31 December 2023 Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respert of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below. Identifying and a55e55ing risk5 related to irregularitie5'. 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 meeting, updating our record of internal controls and ensuring these contro15 operated a5 intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions 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 eharity include the Charities Act 2011, the Charities IAccounts 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 procedure5 On the related financial statement items including a review of financial statement disclosures. We reviewed the charity'5 records of breache5 of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discLJssed the charity'5 policies and procedures for tompliante with13w5 and regLJlat10115 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 actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls bytesting the appropriatene55 of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accc)untinE estimates gave rise to a possible indication of mènagement bia5. At the tompletion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacrty 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 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 website at.. www.frc.or auditorsre5 on51bilitie5. Thi5 description form5 Part of our auditor'5 report.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES Icontinuedl Year ended 31 December 2023 Use of our report This report is made solely to the charity's trustees. as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not attept or assume responsibility to anyone otherthan the charity and the trustees as a body, ft)rour auditwork, forthi5 report, orforthe opinions we have formed. [.fvJ LLP Saffery LLP Statutory Auditor5 Mitre House North Park Road Harrogate North Yorkshire HGI 5RX Date.. 24 June 2024 Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 12
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust STATEMENT OF FINANCIAL ACtIVlTIES (incorporating the Income and Expenditure account) Year ended 31 December 2023 Unrestrirted funds Restricted funds Total funds 2023 Total funds 2022 Notes Income from: Charitable activities Investments Total 362,331 193,738 556,069 362.331 193.738 556,069 344,438 170,854 515,292 Expendlture on.. Raising funds Charitable activities Total 27,629 396,983 424,612 27,629 414,175 441.804 31,777 721,338 753,115 17,192 17.192 Net gainslllossesl on investments 12,13 117,538 117,538 1585,0451 Net Income / lexpenditurel 248,995 117,1921 231.803 1822.8681 Transfers between funds 18 Net movement in funds 248,995 117,1921 231,803 1822,8681 Reconciliation of funds.. Total funds brought forward 6.393.109 335.309 6,728,418 7,551.286 Totsl funds carrled forward 18 6,642,104 318.117 6,960,221 6.728,418 20?2024 The financial statements were approved by the Trustees on. and signed on their behalf by.. DocuSi9ned by. DDcuSwJnEdby". 8CA4BQAC3CSD411 4142E47Q3Ql Mr N Wainman Trustee Mr J Campbell Trustee The notes on pages 16 to 29 form part of these accounts. 13
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust BALANCE SHEET as at 31 December 2023 Note 2023 2022 Flxed assets Tangible assets Investment properties Investments li 12 542,927 345,000 4.746,575 598,851 345,0 4,637,479 13 Total flxed assets 5.634.502 5.581.330 Current asset5 Debtors Inve5tment5 Cash at bank and in hand 14 15 78,320 1,099,226 343,940 38,481 799,226 750,806 Totsl current assèts 1,521,486 1,588,513 Creditor5.' Amounts falling due within one vear 16 1195,7671 1441,4251 Net current assets 1.325.719 1,147,088 Totsl assets lèss turrent liabilities 6.960.221 6,728.418 Net assets 6.960.221 6,728,418 The funds of the charity- Unrestrlcted funds Unrestricted general funds Designated funds 18 18 6.056.114 585,990 5,887,409 505,700 Totsl unrestrfcted funds 18 6.642.104 6,393,109 Restrlcted funds 18 318,117 335,309 6,960,221 6,728.418 The financial statements were approved by the Trustees on. 20rE2024 and signed on their behalf by.. Dwu514ned by. A/ A to_ 8CA4BQAC3CgD411 Mr N Wainman Trustee 4A8ZE4703B53401 Mr J Campbell Trustee 14
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust STATEMENT OF CASH FLOWS as at 31 December 2023 The notes on pages 16 to 29 form part of these accounts. Notes 2023 2022 Cash flows (used inl operatinB activities 23 {303.8181 116.1831 Cash flows provided by investing activities Purchase of tangible fixed assets Investment income IPLJrcha5ellDi5P0531 of current asset investments Purchase of listed investments Proceeds from sale of listed investments Oecrease/llncreasel in cash held by the investment manager Net Cash flows generated from investing activities 15,2281 193,738 170.584 1300,0001 1453,5841 1877,6601 1549,5641 703,588 1,153,237 182,514 55,919 {103,0481 376,592 Net movement In cash and cash equlvalents In the year 1406.8661 360,409 Cash and cash equivalents at l January 2023 750,806 390,397 Cash and cash equlvalents at 31 December 2023 343,940 750,806 al Analysls of net funds Asatl January 2023 Cash flows Asat31 December 2023 Cash at bank and in hand 750,806 750,806 1406,8661 1406,8661 343,940 343,940 15
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 ACCOUNTING POLICIES BASIS OF ACCOUNTING These financial 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 Charities.. Statement of Recommended Practice applicable in the UK and Republic of Ireland IFRS 1021 120191- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities 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 Harrison and Potter Trust ICIOI with the exception of the Alm5house5, which are permanently endowed and remain in 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 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 detai15 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 re50urce5 inclLJding 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 financial statements. SOCIAL HOUSING GRANT Social Housing Grant ISHGI 15 paid by the Housing Corporation to reduce the cc>5t of development and is recognised as income on receipt and completion of the projertto which it relates. SHG 15 repayable under certain circumstances. primarily following the sale of a property but will normally be restricted to net prOed5 of sale. A Social Housing Grant Df £675,042 was received in connertion to the refurbishment of Raglan Road and was recognised in unrestricted reserves. Should a triggering event occur, this amount would be repayable by Harrison and Potter Trust lunincorporatedl la linked charity, charity number.. 1179665-11. The Trustees have obtained confirmation from Homes England that the transfer of almshouse operations to Harrison and Potter Trust CIO was not a triggering event subject to Harrison and Potter Trust lunincorporatedl Icharity number: 1179665-11 remaining a Registered Provider.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 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 future m3inten3nce costs, or result in 3 significant extension of the useful economic life of the property in the Trust. Only the direct overhead costs associated with these improvements are capitalised. FIXED ASSETS- OTHER Othertangible fixed assets are stated at cost with the exception of prc>perty held for investment purposes. DEPRECIATION Housing properties Housing properties are depreciated at a rate of 2% per annum on cost. The depreciation on the 2 almshouse properties 15 charged to restricted fund5. Land is not depreciated. Investment properties Investment properties are not depreciated. Other fixed assets Depreciation is provided on the following bases.. Heating systems- 6.67% per annum on cost. Other fixtures & fittings- 15°A per annum on cost. INVESTMENT PROPERTIES Investment propertles 3re stated at their estimated value on an open market basis at the ba13nce Sheet date. Valuations are updated annually by the Trustees and every third year by independent Chartered Surveyors on an open market basis. No depreciation is provided in respert of freehold investment properties or on leasehold investment properties where the unexpired lease term exceeds 20 years. Details of the current value and historical cost information for investment properties are given in note 12.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 ACCOUNTING POLICIES Icontinuedl INVESTMENTS Investments are stated at market value. Purchases and sales of investments are dealt with by reference to the date of contrart. When a contract has been entered into during the year but settlement doe5 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 deposit with a maturity date of less than one year which 1% held for investment purposes rather than to meet short term cash tommitments as they fall due. EXTRAORDINARY REPAIR FUNO The Extraordinary Repair Fund is a designated fund held pursuant to the Trustees, reserves policy. The Fund is maintained by annual transfer out of the CIO'S income and used to cover items of extraordinary repair. CYCUCALMAINTENANCE 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 interval5. RESTRICTED FUNDS These are funds that can only be used for particular restricted purposes within 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 hc)usin8 lettin8s, investment income and surpluse5 on disposal c)f 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 basis. APPORTIONMENT OF 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. Finance and administration Costs are further apportioned on the basis of estimated time spent on each activity.
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 ACCOUNTING POLICIES Icontinuedl GRANTS PAYABLE Grants payable are recogni5ed at the point at which they are approved and the recipient is notified. 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 purpose5 the Trust has charity 5tstU5 and accordingly 15 exempt from tax on its investment and rental income and on its capital gains. VALUE ADDED TAX The Trust is not registered for Value Added Tax and expenditure is shown inclusive of VAT in these financi31 statements. FINANCIAL INSTRUMENTS The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measure at their settlement value. DEBTORS Trade and other debtors are recogni5ed at the settlement armount 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 charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recogni5ed at their settlement amount after allowing for any trade discounts due. OPERATING LEASE COMMITMENTS Rentals payable under operating leases, where 5ub5tantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities in the year in which they fall due. 19
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 ACCOUNTING POLICIES Icontinuedl CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charrtv's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readilv apparent from other sources. The estimates and associated assumptions are based on historical experience and other factor5 that are considered to be relevant. Artual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisi()ns to aetounting estimates are recognised in the period in which the estimate is revised whether the revisions affects onlv that period, or in the period of the revision and future periods where the revision affects both current and future periods. Comparatlve SOFA Unrestrltted fund5 Restricted Total funds funds 2022 Income from- Charitable activities Investments Total 344,438 170,854 515,292 344,438 170,854 515,292 Expenditure on: Raising fund5 Charitable activities Total 31,777 704,146 735,923 31,777 721,338 753,115 17,192 17.192 Net gainsl Ilosseslon investments 1585,0451 1585,0451 Net lexpenditurell income 1805.6761 117,1921 1822.8681 Transfers between funds Nèt movement in funds 1805,6761 117,1921 1822,8681 Reconciliation of funds: Total funds brought forward 7,198.785 352,501 7.551.286 Totsl funds carried forward 6.393.109 335.309 6.728.418 20
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 Income from charitsble activities 2023 2022 Income from social housing lettings 362,331 344,438 Investment Income 2023 2022 Interest and dividends from investment portfolio Interest on bank account Rental income from rented land 186,160 2,578 5,000 193,738 165,854 5.000 170,854 Expenditure of raising fund5 2023 2022 Investment management fees 27.629 31.777 Analysis of expenditure on charitable artivities Soclal housSng lettings Provlslon of grants Total 2023 Total 2022 Management costs Depreciation Bad debts Service costs Routine maintenance Planned maintenance Support Cts5ts Vouchers for residents (note 71 Grants to external bodies (note 71 92,399 61,152 3,152 103,935 59,050 4,908 40,393 92,399 61,152 3,152 103,935 59,050 4,908 40,393 2,550 95,753 60,303 11.5931 109,378 359,340 13,(166 28,784 16,850 2,550 46,636 46,636 39,457 364,989 49,186 414,175 721,338 Included in the above is a £17,192 12022.. £17,192) depreciation charge of the Almhouses which is restricted. Governance costs included in support costs.. 2023 2022 Audit and accountancv Clerk to the Trustees 15,240 16,966 32,206 13,260 13,291 26,551
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 Analysis of grants made 2023 2022 Vulnerable people and the homeless Support to the over 60's Resident food vouchers Grant to residents 30,236 16,400 22,777 16,680 3,850 13.000 56,307 2.550 49,186 All grants were made to Charitable organisations or beneficiaries in furtherance of the Charity's objectives. Net incomellexpenditurel for the year This is stated after charging.. 2023 2022 Depreciation of housing properties Depreciation of other tangible fixed assets Operating lease rental Auditorfs remuneration CLJrrent year.. for audit services for non-audit services- accountancy 17,192 43,960 3,110 17,192 43,111 3,379 13,680 2,400 12,960 2.280 Analysls of staff costs. trustee remunerat5on and expenses. and the cost of key management personnel The employees have their contracts of employment with 54 North Homes. 2023 2022 Employee costs during the year= Wages and salaries 39,781 38,640 None of the Trustees lor any persons connected with them) received any remuneration during the year. Travel and subsistence expenses amounting to £31 were reimbursed to the Trustees12022: £nill. No employee received emoluments of more than £60,000 during the current or preceding year. io stsff numbers The average month number of employees lincluding part-time staffl during the year was as follows.. 2023 No. 2022 No. Average number of employees 22
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 li Tangible fixed assets Freehold land and buildings Lovell Park Road Heating Systems Fixtures & Raglan Road Total Cost/valuation Cost b/fwd Additions Disposals Revaluation Cost c/fwd 719,326 146,115 605,644 142,029 5,228 1,613,114 5,228 719,326 146,115 605,644 147,257 1.618.342 Depreciution Depn b/fwd Charge for the year Disposals Revaluation Depn clfvid 465,619 14,387 64,513 2,805 372,182 38,579 111,949 5,381 1,014,263 61.152 480,006 67,318 410,761 117,330 1,075,415 NBV clfwd 239,320 78,797 194,883 29,927 542,927 NBV b/fwd 253,707 81,602 233,462 30,080 598,851 At 31 December 2023 the Harrison & Potter Trust owned and managed 52 units12022.. 52 units) of housing accommodation. All 52 units represented supported housing and housing for older people. 25
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 12 Investment properties Freehold Land at Barwick in Elmet Valuation At l January 2023 Revaluation 345,000 At 31 December 2023 345,000 Net Book Value At 31 December 2023 345,000 At l January 2023 345,000 This parcel of land was revalued on an existing use basis at £345,000 by Bartle & Son, Valuers & Auctioneers, a5 at 31 December 2021 and this value was incorporated into the financial statements at that date. The original cost of this land is £5,465. The Trustees have reviewed this valuation at the year- end and consider it to remain appropriate. 13 Investments 2023 2022 At market value.. At beginning of year Additions Disposal proceeds Increa5e/ldecrea5el in market value 4,398,723 877,660 1703,5881 117,538 5,587,441 549,564 11,153,2361 1585,0461 At end of year Cash held by the investment manager 4,690,333 56,242 4,398,723 238,756 4,746,575 4,637,479 Further analysis of this is shown in note 22. 24
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 14 Debtors 2023 2022 Due within one year= Rent and service charges due Bad debt provision Other debtors and accrued income 34,816 127,8671 71,371 78,320 29,940 124,7151 33,256 38,481 15 Current asset Snvestment 2023 2022 Charities Official Investment Fund Deposit 1,099,226 1,099,226 799,226 799,226 16 Creditors.. amounts falling due within one year 2023 2022 Trade creditor5 Prepayments of rent and service charges Other creditors and accruals 65,322 27,999 102,446 195,767 41,326 27,174 372,925 441,425 The Trustees, policy for payment of purchase invoices is one month between receipt and payment 12022.. 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 accounting method and the comparative amounts are prepared as if the assets had always been held by the CIO. 25
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 18 Analysis of charitsble funds Balance I January Incoming 2023 resource5 Funds 31 Detembèr 2023 Resources Gains on expended investments Transfers Unrestrictèd funds General fund Revaluation reserve 5,547,874 339,535 546,115 1419,7041 117,538 175,2441 5,716,579 339,535 Designated extraordinary repair fund Designated cyclical maintenance fund Total designated funds 218,221 9,954 28.548 256.723 287,479 505,7 14,9081 14,9081 46,696 75,244 329,267 585,990 9,954 Total unrestrfcted funds 6,393.109 556,069 1424,6121 117,538 6,642.104 Permanently endowed almshouses 335,309 335,309 117,1921 117,1921 318,117 318,117 Total restricted funds Total funds 6,728,418 556,069 1441,8041 117,538 6.960,221 During the year transfers from the general fund were made to the designated funds of £75,2441£69,628 in 2022, £28,548 to the extraordinary repair fund and £46,696 to the cyclical maintenance fund) in orderto fund future repairs and maintenance at the almshouses. The designated extraordinary repair fund is used for any future extraordinary repair, improvement or rebuilding of the almshouses. The designated cyclical maintenance fund is used forthe ordinary maintenance and repair of the almsh(>use5. This fund is to be utilised over the short term and in 2023, £4,908 of void repairs expenditure12022- £13,066) has been allocated to the 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 represents the carrying value of the almshouses which belong to Harrison and Potter Trust (unincorporated charity) a linked charity. For more detail see note 21. The restricted expenditure above represents the depreciation charge on the two almshouse properties in 2023. As detsiled in note 22 the investments are split between variou5 funds. 26
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 19 Analysis of net assets between funds General fund Designated Restricted funds funds Totsl Fixed assets Current asset investment Cash at bank and in hand Other net current assets 5,316.385 842,503 14,673 1117,4471 318,117 5.634,502 1,099,226 343,940 1117,4471 256,723 329,267 Total 6,056,114 585,990 318,117 6,960,221 General fund De518nated funds Restricted fund5 Total 2022 Fixed assets Current asset investment 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 Totsl 5,887,409 505,700 335,309 6,728.418 20 Operating lease commltments 2023 Laundry Equipment 2022 Laundry Equipment Not later than l year Later than I year and not later than 5 years Over 5 years 3,110 8,554 3.110 11,664 11,664 14,774 27
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 21 Linked 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 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 TrLJStees, the charities bec3me linked. The funds of Harrison and Potter Trust lunincorporatedl are shown separately within the fund note as permanently endowed almshouses. Harrison and Potter Trust lunincorporatedl Charity Number.. 1179665-1 Home5 and Communities Agency= 224941 Total funds.. £318,117 22 Fixed Asset Investments Cost Market Value 2023 2023 2022 2022 CAPITAL ACCOUNTS.. Capital Fund Government Bonds and Fixed Interest Stocks Listed Equities 1.299.689 2,520,362 1,008,963 2,599,376 1,210,013 3,480,320 903.L141 3,495,282 Total investments on capital account 3.82C).051 3,608,339 4,690.333 4.398,723 CASH HELD 56.242 238,756 56,242 238.756 TOTAL INVESTMENTS 3,876,293 3,847,095 4,746,575 4,637,479 2¥
Docusign Envelope ID.. 1F1A841D-C4744391-B4DSC912D3FCF288 Harrison and Potter Trust NOTES ON THE ACCOUNTS Icontinuedl Year ended 31 December 2023 Net tash from operating activitiès 2023 2022 Net income for the reporting period before gain51llossesl on investments Adjusted for: Depreciation of housing properties Depreciation of other tangible fixed assets Ilncreasel in debtors IDetre3sel/increase in creditors Investment income 114,265 1237,8231 17,192 17,192 43,960 43,111 139.8391 19.2231 1245.6581 341.144 1193,7381 1170,5841 Net cash (used inl/provided by operating activities 1303,8181 116.1831 29