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2024-12-31-accounts

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

Trustees’ Annual Report and Financial statements

for the year ended

31 December 2024

Registered Charity No: 1179665

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

Harrison and Potter Trust
FINANCIAL STATEMENTS
Year ended 31 December 2024
CONTENTS Page No:
Officers and Charity information, including reference and administrative details 1
Report of the Trustees 2
Statement of Trustees’ Responsibilities and Trustees’ Approval 7
Audit Report 8
Statement of Financial Activities (incorporating the Income and Expenditure Account) 12
Balance Sheet 13
Statement of cash flows 14
Notes to the Financial Statements 15

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

OFFICERS AND CHARITY INFORMATION Year ended 31 December 2024

Reference and administrative details

Reference and administrative details
TRUSTEES Mr M C Andrews (Chairman)
Dr I A Blomfield
Mrs G M Cartwright (retired 31 December 2024)
Mr N A Wainman
Mr J Campbell
Mr M A Payne
Mrs S M Higgs (retired 11 February 2025)
Mr I W Shaw
Mr M J Wilson
BANKERS NatWest plc
8 Park Row
Leeds
LS1 1QS
Barclays Bank plc
10 Market Street
Bradford
BD1 1NR
INVESTMENT MANAGEMENT Rathbones incorporating Investec Wealth & Investment
4th floor
3 Wellington Place
Leeds
LS1 4AP
ALMSHOUSE MANAGEMENT Karbon Homes (formerly Leeds and Yorkshire Housing
Association)
3rdFloor
White Rose House
8 Otley Road
Headingley
Leeds
LS6 2AD
AUDITOR Saffery LLP
10 Wellington Place
Leeds
LS1 4AP
Correspondence Address c/o Wrigleys Solicitors LLP
3rdFloor
3 Wellington Place
Leeds
LS1 4AP
REGISTERED CHARITY NUMBER 1179665
SUBSIDIARY HOMES AND COMMUNITIES AGENCY
NUMBER
 A1920

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

REPORT OF THE TRUSTEES Year ended 31 December 2024

The Trustees present their annual report together with the financial statements for the year ended 31 December 2024.

The financial statements comply with the Charities Act 2011 and Accounting and Reporting by 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 (FRS 102) (effective 1 January 2019).

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:

The Trustees recognise their duties under the Charities Act 2011 and have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's activities and compiling this report.

The activities described above, and explained in more detail in the following sections, are consistent with the CIO's values and aims which, in turn, derive from its charitable objects.

Almshouse policy

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 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 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 Karbon Homes, who report regularly 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 policy

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.

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Harrison and Potter Trust

REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2024

The Trustees invite applications from locally based charities with local projects 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 salaries; nor can the charity commit to repeat grants.

ACHIEVEMENTS AND PERFORMANCE

The CIO has 2 principal aims:

1. 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 Raglan Road to the CIO the CIO seeks to maintain the standard of the almshouses following their refurbishment in 2010/11. 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 properties and the provision of the social support 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 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 £52,326 (2023: £46,636) were made in this financial year.

Investment performance

At the year-end the portfolio was valued at £4,966,551 generating a projected annual income of £131,647 or 2.65%.

On the advice of our investment managers, we continue to retain a slightly defensive posture on the Harrison & Potter portfolio by being modestly underweight equities, while continually looking for opportunities to present themselves.

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 £231,747 (2023: £231,803). Gain on investments for the year, included within the net income for the year, amounted to £264,017 (2023: £117,538).

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REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2024

Harrison and Potter Trust

Transfers of £63,261 (2023: £75,244), were made to designated reserves from the general fund in connection with the housing properties for cyclical maintenance and extraordinary repairs.

Reserves policy

The policy of the Trust is to maintain sufficient capital to enable the Trustees to carry out both the short term and long-term objectives of the charity.

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 2022 year, the permanent endowment on investments was lifted and the total funds were transferred to the unrestricted reserves. The permanent endowment on the Almshouse sites remains.

The Designated funds amounting to £626,699 at 31 December 2024 are in line with the guidance provided by the Almshouse Association "standards of management" and are considered by the Trustees to be at an appropriate level.

The charity’s total reserves amount to £7,191,968 at 31 December 2024, with £6,891,043 held within the CIO. Within this the Trustees have considered the level of free reserves of the charity which amount to £1,386,665. Free reserves include cash held on short term deposit with the investment managers of £29,194. In setting the level of reserves the Trustees take into account the need to keep operating should the charity suffer a loss of income or should operations be disrupted. 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 £626,699 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 activities in the future.

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 Trustees 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 (VFM) and to focus on embedding good practice into the whole Trust. The trustees have adopted a Value for Money strategy which identifies the ambitions of the trust to move towards a transformational approach to VFM.

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Harrison and Potter Trust

REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2024

VFM Metrics 2024 2023
1 – Reinvestment percentage 0% 0%
(New investment in properties as a percentage of total properties held)
2A – New supply delivered (percentage) N/A N/A
(New social housing units developed as a percentage of social housing units
held)
2B – New supply delivered (non-social housing units) N/A N/A
(Non-social housing units developed as a percentage of total housing units
owned)
3 – Gearing percentage N/A N/A
(Loans less cash as a % of the value of housing properties)
4 – EBITDA MRI interest cover percentage N/A N/A
5 – Headline social housing cost per unit £9,336 £5,843
(Social housing costs excluding depreciation divided by social housing units
owned)
6A – Operating margin -40% -1%
(Operating surplus as a percentage of turnover from social housing lettings)
6B – Operating margin overall -40% -1%
(Operating surplus as a percentage of turnover)
7- Return on capital employed (ROCE) percentage -2% 0%
(Operating surplus as a % of total assets less current liabilities)

VFM has been defined as the relationship between economy, 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 it.

VFM activities have the following objectives at all levels and functions within the Trust.

PLANS FOR THE FUTURE

The Charity plans to continue the activities outlined above and no material change is anticipated in the way the almshouse operation is managed in the next financial year. The Charity intends to continue to make grants as part of its charitable activities during 2025 at a similar level.

The trustees are conscious that the accommodation provided to residents is in need of significant modernisation in the long term. During the year the trustees appointed architects and a development manager to oversee a project to redevelop the Lovell Park site. The Trust made a planning application

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2024

Harrison and Potter Trust

to Leeds City Council on 27 January 2025, seeking to redevelop the Lovell Park site with a block of 92 new flats, to be occupied as almshouses.

STRUCTURE, 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 activities of Harrison and Potter by way of a transfer of assets on 31 December 2019 from Harrison and Potter Trust, which is a Registered Charity, number 1179665-1.

The linked Charity, Harrison and Potter Trust Charity Number 1179665-1, is registered with Homes and Communities Agency A1920.

The body of Trustees comprises a maximum of eleven persons; minimum of four persons. Mrs G M Cartwright retired as a trustee on 31st December and Mrs S M Higgs retired as a trustee on 11th February 2025. The Trust hopes to be in a position to appoint three new Trustees at the AGM.

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 for grants. The almshouse operation and welfare and needs 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, individual Trustees liaise with the managing agents regarding 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 by a resolution of the existing Trustees passed at a special meeting.

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 of any relevant audit information and to establish that it has been communicated to the auditor.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

REPORT OF THE TRUSTEES (Continued) Year ended 31 December 2024

STATEMENT OF THE RESPONSIBILITIES 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 Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law, in England and Wales, requires 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 resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the 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 irregularities.

05 June 2025

This report was approved by the Trustees on ……………………

Mr N Wainman Trustee Mr J Campbell Trustee

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES Year ended 31 December 2024

Opinion

We have audited the financial statements of Harrison and Potter Trust for the year ended 31 December 2024 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes 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 Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities 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.

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 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 authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to 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, other than the financial statements and our auditor’s 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.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES (continued) Year ended 31 December 2024

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 of 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 conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, 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 responsible 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 operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities 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 not a guarantee that an audit conducted in accordance with ISAs (UK) 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.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES (continued) Year ended 31 December 2024

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 respect 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 assessing risks 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 meeting, 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 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 charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations 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 by testing the appropriateness 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 accounting estimates gave rise to a possible indication of management bias. At the completion 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 capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance 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.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Harrison and Potter Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES (continued) Year ended 31 December 2024

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 accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery LLP

Statutory Auditors 10 Wellington Place Leeds LS1 4AP

Date: 13 June 2025

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

STATEMENT OF FINANCIAL ACTIVITIES (incorporating the Income and Expenditure account) Year ended 31 December 2024

Notes
Income from:
Charitable activities
3
Investments
4
Total
Expenditure on:
Raising funds
5
Charitable activities
6
Total
Net gains/(losses) on
investments
12,13
Net income / (expenditure)
Transfers between funds
18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
18		 Unrestricted
funds
Restricted
funds
Total funds
2024
Total funds
2023
£
£
£
£
394,501
-
394,501
362,331
206,119
-
206,119
193,738
600,620
-
600,620
556,069
29,453
-
29,453
27,629
586,245
17,192
603,437
414,175
615,698
17,192
632,890
441,804
264,017
-
264,017
117,538
248,939
(17,192)
231,747
231,803
-
-
-
-
248,939
(17,192)
231,747
231,803
6,642,104
318,117
6,960,221
6,728,418
6,891,043
300,925
7,191,968
6,960,221

05 June 2025

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 form part of these accounts.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust BALANCE SHEET as at 31 December 2024

Note 2024 2023
£ £
Fixed assets
Tangible assets 11 493,712 542,927
Investment properties 12 345,000 345,000
Investments 13 4,995,745 4,746,575
────── ──────
Total fixed assets 5,834,457 5,634,502
────── ──────
Current assets
Debtors 14 279,253 78,320
Investments 15 920,201 1,099,226
Cash at bank and in hand 356,208 343,940
─────- ─────-
Total current assets 1,555,662 1,521,486
Creditors: Amounts falling due within one year 16 (198,151) (195,767)
────── ──────
Net current assets 1,357,511 1,325,719
────── ──────
Total assets less current liabilities 7,191,968 6,960,221
────── ──────
Net assets 7,191,968 6,960,221
══════ ══════
The funds of the charity:
Unrestricted funds
Unrestricted general funds 18 6,264,344 6,056,114
Designated funds 18 626,699 585,990
────── ──────
Total unrestricted funds 18 6,891,043 6,642,104
Restricted funds 18 300,925 318,117
────── ──────
7,191,968 6,960,221
══════ ══════

05 June 2025

The financial statements were approved by the Trustees on ……………….. and signed on their behalf by:

Mr N Wainman Mr J Campbell Trustee Trustee

The notes on pages 16 to 29 form part of these accounts.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

STATEMENT OF CASH FLOWS as at 31 December 2024

Notes
Cash flows (used in) operating activities
23
Cash flows provided by investing activities
Purchase of tangible fixed assets
Investment income
Current asset investment cash withdrawn/(reinvested)
Purchase of listed investments
Proceeds from sale of listed investments
Decrease in cash held by the investment manager
Net Cash flows generated from investing activities
Net movement in cash and cash equivalents in the year
a
Cash and cash equivalents at 1 January 2024
Cash and cash equivalents at 31 December 2024		 2024
£
2023
£
(374,971)
(303,818)
(12,752)
(5,228)
206,119
193,738
179,025
(300,000)
(979,399)
(877,660)
967,198
703,588
27,048
182,514
387,239
(103,048)
12,268
(406,866)
343,940
750,806
356,208
343,940

a) Analysis of net funds

Cash at bank and in hand

As at 1 Cash As at 31
January flows December
2024 2024
£ £ £
343,940 12,268 356,208
343,940 12,268 356,208

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

1 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 (FRS 102) (2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Harrison and Potter Trust (CIO) 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 (CIO) with the exception of the Almshouses, which are permanently endowed and remain in Harrison and Potter (unincorporated). 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 (FRS102).

In 2020 Harrison and Potter CIO and Harrison and Potter (unincorporated) became linked charities. This has been accounted for under the branch accounting method in accordance with the Charities SORP (FRS 102). For more details see note 21.

GOING CONCERN

The financial statements have been prepared on a going concern basis. The Trustees have considered how the Trust will meet the challenges presented by the current economic climate. They have carried out a detailed review of the Trust's resources 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 financial statements.

SOCIAL HOUSING GRANT

Social Housing Grant (SHG) 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 circumstances, primarily following the sale of a property but will normally be restricted to net proceeds of sale.

A Social Housing Grant of £675,042 was received in connection 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 (unincorporated) (a linked charity, charity number: 1179665-1). 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 (unincorporated) (charity number: 1179665-1) remaining a Registered Provider.

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Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

FIXED ASSETS – HOUSING PROPERTIES

Housing properties are stated at cost which includes the following:

Works to existing properties are works which result in an increase in the net rental income, such as a reduction in the future maintenance costs, or result in a significant extension of the useful economic life of the property in the Trust. Only the direct overhead costs associated with these improvements are capitalised.

Within the other debtor balance in the accounts there is an amount held in relation to development costs that are yet to be capitalised. These are to be included within the tangible fixed asset balance once development has started.

FIXED ASSETS – OTHER

Other tangible fixed assets are stated at cost with the exception of property held for investment purposes.

DEPRECIATION

INVESTMENT PROPERTIES

Investment properties are stated at their estimated value on an open market basis at the balance 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 respect 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.

16

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

1 ACCOUNTING POLICIES (continued)

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 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 is held for investment purposes rather than to meet short term cash commitments as they fall due.

EXTRAORDINARY REPAIR FUND

The Extraordinary Repair Fund is a designated fund held pursuant 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.

CYCLICAL MAINTENANCE FUND

The Cyclical Maintenance Fund is a designated fund held pursuant to the Trustees’ reserves policy, used for providing for items of ordinary maintenance and repair of the almshouses which recur at infrequent intervals.

RESTRICTED FUNDS

These are 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 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 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.

17

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

1 ACCOUNTING POLICIES (continued)

GRANTS PAYABLE

Grants payable are recognised 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 purposes the Trust has charity status and accordingly is 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 financial 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 recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepared net of any trade discounts due.

CREDITORS AND PROVISIONS

Creditors and provisions are recognised where the 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 recognised at their settlement amount after allowing for any trade discounts due.

OPERATING LEASE COMMITMENTS

Rentals payable under operating leases, where substantially 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.

18

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

1 ACCOUNTING POLICIES (continued)

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised whether the revisions affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Income from:
Charitable activities
Investments
Total
Expenditure on:
Raising funds
Charitable activities
Total
Net gains/ (losses)on investments
Net (expenditure)/ income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
Total funds
2023
£
£
£
362,331
-
362,331
193,738
-
193,738
556,069
-
556,069
27,629
-
27,629
396,983
17,192
414,175
424,612
17,192
441,804
117,538
-
117,538
248,995
(17,192)
231,803
-
-
-
248,995
(17,192)
231,803
6,393,109
335,309
6,728,418
6,642,104
318,117
6,960,221

19

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

3 Income from charitable activities

Income from social housing lettings
4
Investment income
Interest and dividends from investment portfolio
Interest on bank account
Rental income from rented land
5
Expenditure of raising funds
Investment management fees
6
Analysis of expenditure on charitable activities
Social housing
lettings
Provision of
grants
£
£
Management costs
103,617
-
Depreciation
61,966
-
Bad debts
34,155
-
Service costs
83,633
-
Routine maintenance
138,712
-
Planned maintenance
35,574
-
Support costs
89,758
-
Vouchers for residents
(note 7)
-
3,696
Grants to external bodies
(note 7)
-
52,326
547,415
56,022		 Income from social housing lettings
4
Investment income
Interest and dividends from investment portfolio
Interest on bank account
Rental income from rented land
5
Expenditure of raising funds
Investment management fees
6
Analysis of expenditure on charitable activities
Social housing
lettings
Provision of
grants
£
£
Management costs
103,617
-
Depreciation
61,966
-
Bad debts
34,155
-
Service costs
83,633
-
Routine maintenance
138,712
-
Planned maintenance
35,574
-
Support costs
89,758
-
Vouchers for residents
(note 7)
-
3,696
Grants to external bodies
(note 7)
-
52,326
547,415
56,022		 2024
2023
£
£
394,501
362,331
2024
2023
£
£
144,217
186,160
57,472
2,578
4,430
5,000
206,119
193,738
2024
2023
£
£
29,453
27,629
Total
2024
Total
2023
£
£
103,617
92,399
61,966
61,152
34,155
3,152
83,633
103,935
138,712
59,050
35,574
4,908
89,758
40,393
3,696
2,550
52,326
46,636
603,437
414,175
547,415
56,022

Included in the above is a £17,192 (2023: £17,192) depreciation charge of the Almhouses which is restricted.

Governance costs included in support costs:

overnance costs included in support costs:
Audit and accountancy
Clerk to the Trustees		 2024
2023
£
£
16,080
15,240
24,468
16,966
40,548
32,206

20

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

7 Analysis of grants made

Vulnerable people and the homeless
Support to the over 60’s
Resident food vouchers
Grant to residents		 2024
2023
£
£
37,406
30,236
14,920
16,400
-
-
3,696
2,550
56,022
49,186

All grants were made to Charitable organisations or beneficiaries in furtherance of the Charity’s objectives.

8 Net income/(expenditure) for the year

This is stated after charging:

his is stated after charging:
2024 2023
£ £
Depreciation of housing properties 17,192 17,192
Depreciation of other tangible fixed assets 44,775 43,960
Operating lease rental 3,110 3,110
Auditor’s remuneration
Current year:
- for audit services 13,620 13,680
- for non-audit services – accountancy 2,460 2,400

9 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 Homes.

2024 2023
Employee costs during the year: £ £
Wages and salaries 31,039 39,781
══════ ══════

None of the Trustees (or any persons connected with them) received any remuneration during the year. Travel and subsistence expenses amounting to £262 were reimbursed to the Trustees (2023: £31).

No employee received emoluments of more than £60,000 during the current or preceding year.

10 Staff numbers

The average month number of employees (including part-time staff) during the year was as follows:

2024 2023
No. No.
Average number of employees 1 1

21

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

11 Tangible fixed assets


Cost/Valuation
Cost b/fwd
Additions
Disposals
Revaluation
Cost c/fwd
Depreciation
Depn b/fwd
Charge for the year
Disposals
Revaluation
Depn c/fwd
NBV c/fwd
NBV b/fwd		 Freehold land and buildings
Raglan Road
Lovell Park
Road
Heating
Systems
Fixtures &
Fittings
Total
719,326
146,115
605,644
147,257
1,618,342
-
-
-
12,752
12,752
-
-
-
-
-
-
-
-
-
-
719,326
146,115
605,644
160,009
1,631,094
480,006
67,318
410,761
117,330
1,075,415
2,805
14,387
37,907
6,868
61,967
-
-
-
-
-
-
-
-
-
-
482,811
81,705
448,668
124,198
1,137,382
236,515
64,410
156,976
35,811
493,712
239,320
78,797
194,883
29,927
542,927

At 31 December 2024 the Harrison & Potter Trust owned and managed 52 units (2023: 52 units) of housing accommodation. All 52 units represented supported housing and housing for older people.

22

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Harrison and Potter Trust

12 Investment properties

Freehold Land at
Barwick in Elmet
£
Valuation
At 1 January 2024 345,000
Revaluation -
──────
At 31 December 2024 345,000
═════
Net Book Value
At 31 December 2024 345,000
═════
At 1 January 2024 345,000
═════

This parcel of land was revalued on an existing use basis at £345,000 by Bartle & Son, Valuers & Auctioneers, as 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 yearend and consider it to remain appropriate.

13 Investments

2024 2023
£ £
At market value:
At beginning of year 4,690,333 4,398,723
Additions 979,399 877,660
Disposal proceeds (967,198) (703,588)
Increase/(decrease) in market value 264,017 117,538
─────── ───────
At end of year 4,966,551 4,690,333
Cash held by the investment manager 29,194 56,242
─────── ───────
4,995,745 4,746,575
═══════ ═══════

Further analysis of this is shown in note 22.

23

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

14 Debtors

Debtors
Due within one year:
Rent and service charges due
Bad debt provision
Other debtors and accrued income		 2024
2023
£
£
70,705
34,816
(57,460)
(27,867)
266,008
71,371
279,253
78,320

The other debtors and accrued income figure above includes £242,012 of prepaid development costs (2023: £29,434) relating to pre-planning work at Lovell Park.

15 Current asset investment

Charities Official Investment Fund Deposit
reditors: amounts falling due within one year
Trade creditors
Prepayments of rent and service charges
Other creditors and accruals		 2024
2023
£
£
920,201
1,099,226
920,201
1,099,226
2024
2023
£
£
6,129
65,322
35,399
27,999
156,623
102,446
198,151
195,767

16 Creditors: amounts falling due within one year

The Trustees’ policy for payment of purchase invoices is one month between receipt and payment (2023: one month).

17 Transfer of assets

In 2019, a transfer of net assets totalling £6,673,018 was made from Harrison and Potter Trust (unincorporated) to Harrison and Potter Trust (CIO). 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.

24

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

18 Analysis of charitable funds

Unrestricted funds
General fund
Revaluation reserve
Designated extraordinary
repair fund
Designated cyclical
maintenance fund
Total designated funds
Total unrestricted funds
Permanently endowed
almshouses
Total restricted funds
Total funds		 Balance 1
January
2024
Incoming
resources
Resources
expended
Gains on
investments
Transfers
Funds 31
December
2024
£
£
£
£
£
£
5,716,579
587,598
(580,124)
264,017
(63,261)
5,924,809
339,535
-
-
-
-
339,535
256,723
13,022
-
-
11,053
280,798
329,267
-
(35,574)
-
52,208
345,901
585,990
13,022
(35,574)
-
63,261
626,699
6,642,104
600,620
(615,698)
264,017
-
6,891,043
318,117
-
(17,192)
-
-
300,925
318,117
-
(17,192)
-
-
300,925
6,960,221
600,620
(632,890)
264,017
-
7,191,968

During the year transfers from the general fund were made to the designated funds of £63,261 (2023: £75,244) in order to fund future repairs and maintenance at the almshouses.

The designated extraordinary repair fund is used for any future extraordinary repair, improvement or rebuilding of the almshouses.

The designated cyclical maintenance fund is used for the ordinary maintenance and repair of the almshouses. This fund is to be utilised over the short term and in 2024, £35,574 of void repairs expenditure (2023: £4,908) 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 2024.

As detailed in note 22 the investments are split between various funds.

25

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

2023 Comparative

Unrestricted funds
General fund
Revaluation reserve
Designated extraordinary
repair fund
Designated cyclical
maintenance fund
Total designated funds
Total unrestricted funds
Permanently endowed
almshouses
Total restricted funds
Total funds		 Balance 1
January
2023
Incoming
resources
Resources
expended
Gains on
investments
Transfers
Funds 31
December
2023
£
£
£
£
£
£
5,547,874
546,115
(419,704)
117,538
(75,244)
5,716,579
339,535
-
-
-
-
339,535
218,221
9,954
-
-
28,548
256,723
287,479
-
(4,908)
-
46,696
329,267
505,700
9,954
(4,908)
-
75,244
585,990
6,393,109
556,069
(424,612)
117,538
-
6,642,104
335,309
-
(17,192)
-
-
318,117
335,309
-
(17,192)
-
-
318,117
6,728,418
556,069
(441,804)
117,538
-
6,960,221

19 Analysis of net assets between funds

Fixed assets
Current asset investment
Cash at bank and in hand
Other net current assets
Total		 General
fund
Designated
funds
Restricted funds
Total
£
£
£
£
5,533,532
-
300,925
5,834,457
639,404
280,797
920,201
10,307
345,901
-
356,208
81,102
-
-
81,102
6,264,345
626,698
300,925
7,191,968

26

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust

NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

Fixed assets
Current asset investment
Cash at bank and in hand
Other net current assets
Total		 General
fund
Designated
funds
Restricted funds
Total 2023
£
£
£
£
5,316,385
-
318,117
5,634,502
842,503
256,723
1,099,226
14,673
329,267
-
343,940
(117,447)
-
-
(117,447)
6,056,114
585,990
318,117
6,960,221

20 Operating lease commitments

Not later than 1 year
Later than 1 year and not later than 5 years
Over 5 years		 2024
2023
Laundry
Equipment
Laundry
Equipment
£
£
3,110
3,110
5,444
8,554
-
-
8,554
11,664

21 Linked Charity

On 31 December 2019 all assets with the exception of the two almshouses were transferred from Harrison and Potter Trust (unincorporated) to Harrison and Potter Trust (CIO). The two almshouse sites at Lovell Park and Raglan Road continue to be held in the linked charity as Permanent Endowment. In 2020, on the basis of the charities having the same Trustees, the charities became linked. The funds of Harrison and Potter Trust (unincorporated) are shown separately within the fund note as permanently endowed almshouses.

Harrison and Potter Trust (unincorporated) Charity Number: 1179665-1 Homes and Communities Agency: 224941 Total funds: £318,117

27

Docusign Envelope ID: 41BC5295-949F-4AED-9278-A1593A0F7ACA

Harrison and Potter Trust NOTES ON THE ACCOUNTS (continued) Year ended 31 December 2024

22 Fixed Asset Investments

Cost
2024
2023
£
£
CAPITAL ACCOUNTS:
Capital Fund
- Government Bonds and Fixed
Interest Stocks
1,242,537
1,299,689

- Listed Equities
2,602,811
2,520,362

──────
──────
Total investments on capital
account
3,845,348
3,820,051
══════
══════
CASH HELD
29,194
56,242
══════
══════
TOTAL INVESTMENTS
3,874,542
3,876,293
══════
══════
Net cash from operating activities
Net (expenditure)/income for the reporting period before
gains/(losses) on investments
Adjusted for:
Depreciation of housing properties
Depreciation of other tangible fixed assets
Increase in debtors
Increase in creditors
Investment income
Net cash (used in)/provided by operating activities		 Market Value
2024
2023
£
£
1,159,680
1,210,013
3,806,871
3,480,320
──────
──────
4,966,551
4,690,333
══════
══════
29,194
56,242
══════
══════
4,995,745
4,746,575
══════
══════
2024
2023
£
£
(32,270)
114,265
17,192
17,192
44,774
43,960
(200,933)
(39,839)
2,385
(245,658)
(206,119)
(193,738)
(374,971)
(303,818)

23 Net cash from operating activities

28