## **PILGRIM HOMES TRUST**
## **Financial Statements**
**For the year ended 31 March 2021**
**COMPANY NUMBER** 11685624 **CHARITY NUMBER** 1183226
**Contents of the financial statements For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **Page**
1 Trustees' report – statutory information 2 - 5 Trustees’ report 6 - 9 Independent auditor’s report 10 Statement of financial activities 11 Balance sheet 12 Statement of cash flows 13 - 24 Notes to the financial statements
**PILGRIM HOMES TRUST**
**Trustee’s report – statutory information For the year ended 31 March 2021**
## **DIRECTORS AND TRUSTEES**
Michael Abbott Andrew Symonds (Chairman) Sheila Warnes John Edwards Dr Judy McLaren Philip Oliver (appointed 30 April 2020)
Legal title to the assets of the charity are held by a wholly owned subsidiary and nominee company, The Aged Pilgrims’ Friend Society Trust Ltd. A charity trustees’ indemnity insurance policy is maintained by the group of charities.
## **REGISTERED OFFICE**
175 Tower Bridge Road London SE1 2AL
## **CHARITY NUMBER**
1183226
## **BANKERS**
Lloyds Bank plc 25 Gresham Street London EC2V 7HN
## **AUDITORS**
Jacob Cavenagh & Skeet Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM1 2SW
## **KEY MANAGEMENT PERSONNEL**
The Key Management Personnel of the charity were the Trustees and the members of the Senior Management Team of Pilgrims' Friend Society, whose names and responsibilities are listed below:
|Stephen Hammersley|_Chief Executive Officer_|
|---|---|
|Maureen Sim|_Director of Operations_|
|Adrian Bray|_Company Secretary (to 31 July 2020)_|
|Andy Walsh|_Director of Property Services_|
|Phil Wainwright|_Director of Human Resources and IT_|
|Debbie Buggs|_Director of Finance (from 1 June 2020) and Company Secretary (from 1 August_|
||_2020)_|
Page 1
**Trustee’s report For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
The trustees are pleased to present their report, together with the financial statements of the charity (hereafter in this report referred under the short name of Pilgrim Homes) for the year ended 31 March 2021.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The trustees are pleased to present their report, together with the financial statements of the company for the year ended 31 March 2021. The trustees' report incorporates the directors’ report prepared for the purposes of company law. The results of all group entities are consolidated in the accounts of The Pilgrims Friend Group. Responsibility for the day-to-day operations of the charity is delegated to the Chief Executive and Senior Management Team of Pilgrims' Friend Society which has been the main operating charity for the group.
## **REVIEW OF THE YEAR**
The Company was recognised as a charity on 2 May 2019 being essentially an incorporated form of the original Pilgrim Homes charity (founded in 1807) with articles which, although rendered in modern English, faithfully reproduce those of the original Pilgrim Homes Charity.
On 5 February 2020, the charity acquired the Aged Pilgrims Friend Society Trust Limited, a dormant company, which holds title to the assets of the former Pilgrim Homes and Housing Schemes. To avoid unnecessary costs this company will continue to hold title to these assets as nominee for this Company.
As part of the group reconstruction, on 31 March 2020, the charity acquired, by way of a gift, the operating assets of the former Pilgrim Homes, being both freehold properties and operating assets and equipment. Included within this transfer were six investment properties, together with the former Pilgrim Homes investment portfolio held with Rathbones. During this year, the investment portfolio was liquidated and three of the Redbourn flats were sold. The Company received £647,000 in donations from Pilgrim Homes, which consisted of £452,000 legacies and £195,000 overage receipt.
## **OBJECTIVES AND ACTIVITIES**
The objects of the charity are to provide grants, housing and care for needy Protestant Christians over 60 years of age for the public benefit and to the glory of God.
The charity’s trustees have considered the guidance regarding public benefit when considering and planning its objectives and activities for the year.
## **ACHIEVEMENTS AND PERFORMANCE**
During the year the Charity contributed to the Group’s renewal programme by continuing the building project at Middlefields funding it by liquidating investment assets.
## **FINANCIAL REVIEW**
As noted above the major activity of this year was the business of the former Pilgrim Homes charity (charity number 242266) which gives rise to rental and investment income from the investments held by the charity from which it makes funds capital improvements to the properties and the new building at Middlefields.
The surplus for the year, as dealt with within the SOFA and after charging depreciation amounted to £79,000 (2020: £622,000).
Page 2
**Trustees’ report (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **FUTURE DEVELOPMENTS**
The new home at Middlefields is expected to open in 2021, and further sales of investment properties will be made.
## **INVESTMENT POLICY**
The charity’s investments are detailed in note 8 to these accounts. They include a number of houses and bungalows which are either located close to or within the curtilage of the Care Homes. These properties are unsuitable for use by the beneficiaries of this charity and they are therefore let on assured shorthold tenancies either to staff members or unrelated third parties. During the year the portfolio of listed investment was liquidated.
The trustees intend to maximise the return on these investments by maintaining them well and letting them at market rents. Three of these properties are adjacent to the existing Chippenham Care Home and were disposed of during the year.
## **RESERVES POLICY**
The Charity holds funds of £30,127,000 at the year end. Restricted funds account for £2,290,000. Of the general and designated funds, £23,904,000 could only be realised by disposing of tangible fixed assets or programme related investments. In addition, a further £1,560,000 is allocated to funding the remaining costs of the new home at Middlefields. This means that the reserves (that is, the part of the charity’s unrestricted funds that is freely available to spend on any of the charity’s purposes) are £2,373,000 against a target of £50,000, which is three months' worth of annual expenditure excluding depreciation. The charity is investing surplus reserves into the building of a new operational asset - Middlefields Home.
## **RISK MANAGEMENT**
The charity maintains a comprehensive register of risks which is reviewed by the Key Management Personnel at their monthly meetings and by trustees at every trustee meeting. Risks are rated as to both their likelihood and severity. The greatest risk affecting the Charity is not having liquid funds to pay the contractor building the new home. It has managed this risk by selling illiquid assets in a timely way.
## **STAFF ISSUES**
The Charity does not have any employees.
## **KEY MANAGEMENT PERSONNEL**
The key management personnel of the charity (all of whom are employed by Pilgrims’ Friend Society, a fellow member of the Pilgrims Friend Group, are listed on page 1) are in charge of directing, controlling, running and operating the charity on a day-to-day basis. Details of their remuneration and expenses reimbursed, and other related party transactions are disclosed in Note 7 to the financial statements of the Pilgrim Friends Group. Their pay is reviewed annually.
## **FUNDRAISING POLICY**
The charity does not seek to raise donations, directing these instead to Pilgrims’ Friend Society.
Page 3
## **PILGRIM HOMES TRUST**
## **Trustees’ report (continued) For the year ended 31 March 2021**
## **RELATED PARTIES**
The trustees of the charity consider the following to be related parties:
1. Key Management Personnel of Pilgrims' Friend Society
2. The following charities:
- a. Pilgrims’ Friend Society (charity no. 1045920, company no. 3027071)
- b. The Pilgrims Friend Group (formerly APFS 1807) (charity no. 1134979, company no. 7169875)
- c. Pilgrim Homes (charity no. 242266)
- d. Strathclyde House Trust (charity no. SC025550, company no. SC169848)
3. PFG Trading Limited - a limited company
4. Aged Pilgrims' Friend Society Trust Limited - a limited company which holds title to the properties owned by Pilgrim Homes Trust.
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of Pilgrim Homes Trust for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with 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).
Company law 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 charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK 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 basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **STATEMENT OF DISCLOSURE TO AUDITOR**
So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the charity’s auditor is unaware. Additionally, the trustees individually have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information.
Page 4
## **PILGRIM HOMES TRUST**
## **Trustees’ report (continued) For the year ended 31 March 2021**
## **AUDITORS**
Jacob Cavenagh & Skeet were the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.
The above report is prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Approved by the trustees and signed on their behalf by
A Symonds Mr A J Symonds (Chairman) Date: 23 September 2021
Page 5
## **PILGRIM HOMES TRUST**
## **Independent auditor’s report to the trustees of Pilgrim Homes Trust For the year ended 31 March 2021**
## **OPINION**
We have audited the financial statements of Pilgrim Homes Trust (the charity) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of 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:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 charitable company 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 director’s 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 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
## **OTHER INFORMATION**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
Page 6
## **PILGRIM HOMES TRUST**
## **Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2021**
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.
## **OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the Trustees' Report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included with the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 company or to cease operations, or have no realistic alternative but to do so.
Page 7
## **PILGRIM HOMES TRUST**
## **Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2021**
## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 auditor’s 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.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to charity, financial reporting legislation, health & safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.
We determined that the principal risks were related to:
- accounting measurements of property
- disclosure of capital commitments or provisions
- recognition of legacy income
- fraudulent extraction of cash
In response to the risks identified we designed procedures which included, but were not limited to:
- reviewing third party evidence of investment property valuations
- agreeing financial statement disclosures to underlying supporting documentation
- identifying and reviewing journal entries
- discussions with management and review of legal correspondence
- reviewing Trustees’ meeting minutes
- evaluating the charity’s internal controls
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Page 8
## **PILGRIM HOMES TRUST**
## **Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2021**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **USE OF OUR REPORT**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.
## Paul Newton
**Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet**
**Chartered Accountants Statutory Auditor**
5 Robin Hood Lane Sutton Surrey SM1 2SW
Date: 28 September 2021
Page 9
## **PILGRIM HOMES TRUST**
## **Statement of financial activities (including Income and Expenditure Account) For the year ended 31 March 2021**
|**Note**
**Income from:**
Donations, legacies and grants
**2**
Investments
**3**
Charitable activities
**4**
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
**5**
**Total expenditure**
Net (losses) on investments
**Net income**
**6**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**||**2021**||
|---|---|---|---|
||**Unrest-**
**ricted**
**Funds**
**£000**
**679**
**81**
**120**
**880**
**29**
**768**
**797**
**( 4)**
**79**
**-**
**79**
**27,758**
**27,837**|**Rest-**
**ricted**
**Funds**
**£000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**2,290**
**2,290**||
|||
||
All of the activities are continuing. There were no recognised gains or losses other than those stated above.
The notes on pages 13 to 24 form part of these financial statements.
Page 10
## **PILGRIM HOMES TRUST**
## **Balance sheet As at 31 March 2021**
|**2021**
**Note**
**£000**
**Fixed assets**
Tangible assets
**7**
Investments
**8**
**Current assets**
Stock of flats held for resale
**9**
**1,322**
Debtors and prepayments
**10**
**2,635**
Cash at bank and in hand
**131**
**4,088**
**Creditors**: Amounts falling due
within one year
**11**
**( 583)**
**Net current assets**
**Total assets less current liabilities**
**Funds**:
**12,13,14**
Unrestricted funds
(including revaluation reserve of £0.551m (2020: £1.265m))
Restricted funds
**Total Funds**|**£000**
**23,904**
**2,718**
**26,622**
(
**3,505**
**30,127**
**27,837**
**2,290**
**30,127**|**2020**
**£000**
777
3,242
43
4,062
101)|**£000**
20,067
6,020
26,087
3,961
30,048
27,758
2,290
30,048|
|---|---|---|---|
The financial statements were approved by the Trustees on 23 September 2021 and signed on their behalf by:
|A Symonds|J Edwards|S Hammersley|
|---|---|---|
|A J Symonds|J Edwards|S Hammersley|
|**Chairman**|**Trustee**|**Chief Executive**|
Company Registration No: 3027071
The notes on pages 13 to 24 form part of these financial statements.
Page 11
## **PILGRIM HOMES TRUST**
## **Statement of cash flows For the year ended 31 March 2021**
|**Cash flows from operating activities**
**_Trading and donations_**
Net income
Interest and dividends included in investing activities
Depreciation
Movement in fair value of investments
**_Net cash provided by trading and donations_**
**_Working capital movements_**
(Increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**_Net cash provided by/(used in) working capital movements_**
**Net cash provided by/(used in) operating activities**
**Cash flows from investing activities**
**_Tangible fixed assets_**
Payments on additions of tangible fixed assets
**(**
Proceeds on disposal of tangible fixed assets
**_Net cash (used in) tangible fixed assets_**
**(**
**_Other investing activities_**
Interest and dividends received
Payments on additions of fixed asset investments
Proceeds on disposal of fixed asset investments
**Net cash provided by/(used in) investing activities**
**Net cash inflow/(outflow)**
Cash and cash equivalents at 1 April 2020
**Cash and cash equivalents at 31 March 2021**|**2021**
**£000**
**79**
**( 81)**
**572**
**82**
**652**
**( 545)**
**607**
(
**482**
**544**
(
**1,196**
**4,416)**
(
**7**
**4,409)**
(
**81**
**( 37)**
**3,257**
**3,301**
(
**88**
(
**43**
**131**|**2020**
**£000**
622
( 78)
634
205
1,383
-
2,624)
(58)
2,682)
(1,299)
2,823)
-
2,823)
78
( 701)
645
2,801)
4,100)
4,143
43|
|---|---|---|
The notes on pages 13 to 24 form part of these financial statements.
Page 12
**Notes to the financial statements For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **1. ACCOUNTING POLICIES**
The company is registered as a charitable company limited by guarantee incorporated in England and Wales and is governed by its Memorandum and Articles of Association. Its registered office is 175 Tower Bridge Road, London SE1 2AL.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **1a. Basis of accounting**
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.
The financial statements have been prepared on the historical cost convention, modified to include certain investments and financial instruments at fair value.
## **1b. Merger accounting**
Pilgrim Homes Trust was incorporated on 19 November 2018 to take over the activities of Pilgrim Homes, a charity registered in England and Wales (charity number 242266), which was transferred on 31 March 2020. The Pilgrim Homes restricted fund held by Pilgrims’ Friend Society (charity number 1045920) was also transferred to Pilgrim Homes Trust on 31 March 2020 as part of the same restructuring.
Merger accounting was used for the comparative figures as the restructuring met the criteria under FRS 102. Merger accounting involves aggregating the assets, liabilities and funds of the combining charities and presenting them as though they had always been part of the same reporting charity. Although the merger may have taken place part way through a reporting period, the accounts must be drawn up to include the results of the combining charities for the whole of the reporting period in which the merger occurred.
## **1c. Consolidation**
This charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the group. The charity has therefore taken advantage of exemptions from the requirement to disclosure transactions with other group undertakings.
The financial statements of the charity are consolidated in the financial statements of The Pilgrims Friend Group. These consolidated financial statements are available from its registered office at 175 Tower Bridge Road, London SE1 2AL.
Page 13
**Notes to the financial statements (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **1. ACCOUNTING POLICIES (continued)**
## **1d. Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1e. Tangible fixed assets**
Fixed assets are recorded at historic cost. Expenditure on existing properties is capitalised when works result in an enhancement of economic benefits of the asset. Other expenditure on the properties is charged to the income and expenditure account. Where appropriate, the historic cost less accumulated depreciation of any replaced components is released from the asset and recognised as a loss on disposal.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life. The following rates are used on a straightline basis:
|Land|nil|
|---|---|
|Buildings|100 years|
|Roof|70 years|
|Electrics|40 years|
|Windows, doors, heating and plumbing|30 years|
|Bathrooms and lifts|20 years|
|Kitchens – sheltered|20 years|
|Boilers|15 years|
|Kitchens – residential|10 years|
|Furniture and equipment – sheltered|10 years|
|Hard landscaping|5 years|
|Computer equipment|4 years|
## **1f. Income**
Rental and ancillary income is recognised on the basis of when the service was provided to the resident. Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the charity for its use, these are capitalised at the estimated market value at the date of the gift and included under income.
## **1g. Expenditure**
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the charity’s activities.
## **1h. Governance costs**
This comprises expenditure on compliance with statutory legal requirements and is included in charitable activities.
Page 14
**Notes to the financial statements (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **1. ACCOUNTING POLICIES (continued)**
## **1i. Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund are set out in note 14 to the financial statements.
## **1j. Fixed asset investments**
Fixed asset investments are freehold properties let on assured shorthold tenancies at market rents. These properties are included in these accounts at the trustees’ estimate of market value. Gains and losses arising from revaluation are recognised in the Statement of Financial Activities.
## **1k. Debtors**
Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.
## **1l. Cash and cash equivalents**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.
## **1m. Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation arising 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 recognised at their settlement amount. Concessionary loans are included at historic cost.
## **1n. Financial instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **2. INCOME FROM DONATIONS AND LEGACIES**
|Grants receivable
Legacies receivable
Other sources|**2021**
**£000**
**676**
**-**
**3**
**679**|**2020**
**£000**
510
982
11
1,503|
|---|---|---|
Page 15
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements (continued) For the year ended 31 March 2021**
|**3.**|**INCOME FROM INVESTMENTS**|||
|---|---|---|---|
|||**2021**|**2020**|
|||**£000**|**£000**|
||Rental of investment properties|**63**|64|
||Bank interest|**3**|14|
||Dividends|**15**|-|
|||**81**|78|
|**4.**|**INCOME ON CHARITABLE ACTIVITIES**|||
|||**2021**|**2020**|
|||**£000**|**£000**|
||Housing income|**-**|8|
||Extra Care Housing lease sales|**120**|-|
|||**120**|8|
|**5.**|**EXPENDITURE ON CHARITABLE ACTIVITIES**|||
|||**2021**|**2020**|
|||**£000**|**£000**|
||Housing costs|**4**|14|
||Cost of Extra Care Housing lease sales|**120**|-|
||Care costs|**-**|14|
||Other administrative costs|**66**|121|
||Governance costs:|||
||Auditors’ fees for audit|**4**|3|
||Auditors’ fees for accountancy|**2**|6|
||Depreciation|**572**|634|
|||**768**|778|
|**6.**|**NET INCOME**|||
|||**2021**|**2020**|
|||**£000**|**£000**|
||This is stated after charging:|||
||Depreciation|**572**|634|
||Auditors’ remuneration for audit services|**4**|3|
||Auditors’ remuneration for other services|**2**|6|
Page 16
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements (continued) For the year ended 31 March 2021**
## **7. TANGIBLE FIXED ASSETS**
|**Freehold and**
**Assets in the**
**Furniture,**
**leasehold**
**course of**
**fixtures and**
**properties**
**construction**
**fittings**
**£000**
**£000**
**Cost**
As at 1 April 2020
**24,115**
**671**
**929**
Additions
**362**
**4,003**
**51**
Disposals
**-**
**-**
**( 52)**
As at 31 March 2021
**24,477**
**4,674**
**928**
**Depreciation**
As at 1 April 2020
**5,244**
**-**
**404**
Charge for the year
**456**
**-**
**116**
Released on disposals
**-**
**-**
**( 45)**
As at 31 March 2021
**5,700**
**-**
**475**
**Net book value**
As at 31 March 2021
**18,777**
**4,674**
**453**
As at 31 March 2020
18,871
671
525|**Total**
**£000**
**25,715**
**4,416**
**( 52)**
**30,079**
**5,648**
**572**
**( 45)**
**6,175**
**23,904**
20,067|
|---|---|
Assets in the course of construction represents the construction costs, together with professional fees incurred in the construction of the new Middlefields House care home in Chippenham.
The cost of freehold and long leasehold property together with assets in the course of construction comprises the following:
|**Freehold property:**
Dorothea Court, Bedford
Leonora Home, Chippenham
Great Finborough Home
Great Finborough Housing
Evington Home, Leicester
Shottermill Home, Haslemere
Milward Home, Tunbridge Wells
Wantage Home
Royd Court, Mirfield
Pilgrim Gardens, Evington, Leicester
Land at Churston Ferrers
Redbourn retirement flats
**At Committee’s revaluation, 31st March 1954 plus cost since:**
Brighton Home
**Assets in the course of construction (including land already purchased):**
Middlefields House
**Long leasehold property:**
Crosfield Court, Watford
**Total properties and assets in the course of construction**|**2021**
**£000**
**4,379**
**327**
**1,743**
**2,437**
**2,208**
**1,459**
**1,290**
**1,652**
**3,484**
**2,081**
**60**
**1,300**
**22,420**
**464**
**6,124**
**143**
**29,151**|**2020**
**£000**
4,363
327
1,727
2,389
2,159
1,399
1,255
1,558
3,440
2,081
60
1,300
22,058
464
2,121
143
24,786|
|---|---|---|
Page 17
**Notes to the financial statements (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **7. TANGIBLE FIXED ASSETS (continued)**
The insured rebuild value of the property in use by the Society is £55.8 million (2020: £54.9 million).
## **8. INVESTMENTS**
|**INVESTMENTS**||||
|---|---|---|---|
||**Listed**|**Investment**||
||**investments**|**properties**|**Total**|
||**£000**|**£000**|**£000**|
|**Valuation**||||
|As at 1 April 2020|**1,924**|**4,096**|**6,020**|
|Additions|**33**|**4**|**37**|
|Disposals|**(1,957)**|**(1,300)**|**(3,257)**|
|Revaluations|**-**|**( 82)**|**( 82)**|
|As at 31 March 2021|**-**|**2,718**|**2,718**|
|Historic cost as at 31 March 2021|**-**|**2,167**|**2,167**|
|Investment properties comprise the following:||**2021**|**2020**|
|||**£000**|**£000**|
|**At market value:**||||
|_Transferred from Pilgrim Homes:_||||
|House on Pilgrims’ Way, Great Finborough||**238**|225|
|60 Royd Court, Mirfield||**198**|185|
|90a Wood Lane, Chippenham||**324**|355|
|90 Wood Lane, Chippenham||**308**|357|
|92 Wood Lane, Chippenham||**475**|472|
|House on Liphook Road, Haslemere||**345**|327|
|||**1,888**|1,921|
|_Transferred from Pilgrims’ Friend Society:_||||
|8,10,12,14 and 16 Harding Close Redbourn. Hertfordshire formerly||||
|used as accommodation for missionaries. 8, 10 & 14 sold during year.||**830**|2,175|
|||**2,718**|4,096|
These investment properties were revalued as at 31 March 2021 by the Director of Property Services, Andy Walsh ARIBA. The values shown above were determined as being the open market value of each property as at 31 March 2021.
The net losses on investments for the year is made up of:
|The net losses on investments for the year is made up of:||
|---|---|
||**£000**|
|Realised loss of sale of Redbourn flats|**( 61)**|
|Realised gain on sale of listed investments|**139**|
|Revaluation of investment properties|**( 82)**|
||**( 4)**|
Page 18
**Notes to the financial statements (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **9. STOCK**
|**2021**
**£000**
Stock of leasehold flats held for resale (see below)
**1,322**
**Royd Court**
**Pilgrim Gardens**
**Number**
**Cost**
**Number**
**Cost**
**No**
**£000**
**No**
**£000**
As at 1 April 2020
3
351
3
426
Sold
( 1)
(120)
-
-
Bought back
2
382
2
283
As at 31 March 2021
4
613
5
709|**2020**
**£000**
777
**Total**
**£000**
777
(120)
665
1,322|
|---|---|
## _**Contingent liabilities on housing stock**_
Under the terms of the sale of leases at Royd Court, the Society is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2021 is £3.45 million.
Under the terms of the sale of leases at Pilgrim Gardens, the Society is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2021 is £1.58 million.
## **10. DEBTORS AND PREPAYMENTS**
|Due from group entities and associated undertakings
Other debtors and prepayments|**2021**
**£000**
**2,622**
**13**
**2,635**|**2020**
**£000**
3,228
14
3,242|
|---|---|---|
## **11. CREDITORS AND ACCRUALS: amounts falling due within one year**
|Trade creditors
Due to group entities and associated undertakings
Other creditors|**2021**
**2020**
**£000**
**£000**
**165**
49
**366**
-
**52**
52
**583**
101|
|---|---|
Page 19
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements (continued) For the year ended 31 March 2021**
## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**General**
**Designated**
**Restricted**
**Funds**
**Funds**
**Funds**
**_2021_**
**£000**
**£000**
**£000**
**Fixed assets**
Tangible
**-**
**23,904**
**-**
Investments
**2,718**
**-**
**-**
**Current assets**
**718**
**1,080**
**2,290**
**Current liabilities**
**( 583)**
**-**
**-**
**Total Net Assets**
**2,853**
**24,984**
**2,290**
|**Total**
**Funds**
**£000**
**23,904**
**2,718**
**4,088**
**( 583)**
**30,127**|
|---|---|---|---|---|---|---|
||||||||
|**_2020_**|||||||
||||||||
|**Fixed assets**|||||||
|Tangible|4,025|16,042|||-|20,067|
|Investments|6,020||-||-|6,020|
||||||||
|**Current assets**|(1,596)||3,368||2,290|4,062|
||||||||
|**Current liabilities**|(101)||-||-|(101)|
||||||||
|**Total Net Assets**|8,348|19,410|||2,290|30,048|
Page 20
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements For the year ended 31 March 2021**
## **13. FUNDS**
|**FUNDS**||||||||
|---|---|---|---|---|---|---|---|
||**_Brought_**||||||**_Carried_**|
||**_Forward at_**||||||**_forward at_**|
||**_1 April_**|||**_Revaluations_**|||**_31 March_**|
|**_2021_**|**_April 2020_**|**_Income_**|**_Expenditure_**|**_and gains_**||**_Transfers_**|**_2021_**|
||**_£000_**|**_£000_**|**_£000_**|**_£000_**||**_£000_**|**_£000_**|
|**Unrestricted funds**||||||||
|General fund|**8,348**|**880**|**(797)**|**(**|**4)**|**(5,574)**|**2,853**|
|**Designated funds**||||||||
|Operational Assets Equity Fund|**15,992**|**-**|**-**||**-**|**7,912**|**23,904**|
|Operational Risk Reserve|**1,030**|**-**|**-**||**-**|**-**|**1,030**|
|Property Emergency Repair Fund|**50**|**-**|**-**||**-**|**-**|**50**|
|Futures Fund|**2,338**|**-**|**-**||**-**|**(2,338)**|**-**|
||**19,410**|**-**|**-**||**-**|**5,574**|**24,984**|
|**Restricted funds**||||||||
|Lucy McNeil Fund|**1,849**|**-**|**-**||**-**|**-**|**1,849**|
|St Albans Fund|**441**|**-**|**-**||**-**|**-**|**441**|
||**2,290**|**-**|**-**||**-**|**-**|**2,290**|
|Total funds|**30,048**|**880**|**(797)**|**(**|**4)**|**-**|**30,127**|
Page 21
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements (continued) For the year ended 31 March 2021**
|**_Brought_**
**_Carried_**|**_Brought_**
**_Carried_**|**_Brought_**
**_Carried_**|**_Brought_**
**_Carried_**|
|---|---|---|---|
|**_Forward at_**
**_forward at_**||||
|**_1 April_**
**_Revaluations_**
**_31 March_**||||
|**_2020_**
**_April 2019_**
**_Income_**
**_Expenditure_**
**_and gains_**
**_Transfers_**|||**_2020_**|
||**_£000_**|**_£000_**
**_£000_**
**_£000_**
**_£000_**|**_£000_**|
|**Unrestricted funds**||||
|General fund|**8,479**|**770**
**(701)**
**(180)**
**(20)**|**8,348**|
|||||
|**Designated funds**||||
|Operational Assets Equity Fund|**15,992**|**-**
**-**
**-**
**-**|**15,992**|
|Operational Risk Reserve|**1,030**|**-**
**-**
**-**
**-**|**1,030**|
|Property Emergency Repair Fund|**50**|**-**
**-**
**-**
**-**|**50**|
|Futures Fund|**1,596**|**808**
**( 86)**
**-**
**20**|**2,338**|
|||||
||**18,668**|**808**
**( 86)**
**-**
**20**|**19,410**|
|||||
|**Restricted funds**||||
|Lucy McNeil Fund|**1,841**|**8**
**-**
**-**
**-**|**1,849**|
|St Albans Fund|**438**|**3**
**-**
**-**
**-**|**441**|
|||||
||**2,279**|**11**
**-**
**-**
**-**|**2,290**|
|||||
|**Total funds**|**29,426**
|**1,589**
**(787)**
**(180)**
**-**|**30,048**|
Page 22
## **PILGRIM HOMES TRUST**
## **Notes to the financial statements For the year ended 31 March 2021**
## **14. DESCRIPTION OF FUNDS**
## _General Fund_
Assets held in the General Fund are available for the general purposes of the charity.
## _Designated Funds_
The trustees have designated these unrestricted funds for use for specific purposes as detailed below.
## _Restricted Funds_
These are funds where there is a restriction imposed either by the donor or the charity setting out conditions under which funds may be used.
## **Designated Funds**
## _Futures Fund_
The trustees have agreed to designate all legacies received over £100,000 to these funds, which would then be available to meet the costs of redeveloping the properties owned by the group. The balance was transferred out during the year to meet the costs of the Middlefields development.
## _Operational Assets Equity Fund_
Established by the trustee to reflect the value of fixed asset properties owned by the charity which would not be capable of disposal without affecting the ongoing work of the charity. During the year a transfer has been made to match the value of this fund to the value of the freehold properties owned by the charity.
## _Property Emergency Repair Fund_
This fund has been established to ensure that funds are set aside to deal with any emergency repairs required to principally any of this charity's properties, but the fund may be used for any emergency property repairs. In general, all repairs to property occupied by the Pilgrim Homes Restricted Fund will be carried out under the auspices of that Fund and the value gifted to this charity by way of an _in-specie_ grant. A cash reserve of at least £50,000 will be maintained within the charity to enable these funds to be accessible in an emergency.
## _Operational Risk Reserve_
This fund consists of funds required to ensure the continuity of care in the event of a major disruption to the operation of the charity.
## **Restricted Funds**
## _St Albans and Lucy McNeil Home Funds_
These funds, accepted on 31 March 2020 as part of the transfer from Pilgrims’ Friend Society, relate to the receipt of donations and the proceeds of various fundraising activities for the purpose of establishing new homes.
Page 23
**Notes to the financial statements (continued) For the year ended 31 March 2021**
## **PILGRIM HOMES TRUST**
## **15. RELATED PARTY TRANSACTIONS**
The Pilgrims Friend Group is the ultimate controlling charity of the group. The charity is a subsidiary of The Pilgrims Friend Group by virtue of that charity being the sole member of Pilgrim Homes Trust with the right to appoint directors. Transactions with The Pilgrims Friend Group and its other group undertakings are not disclosed as consolidated financial statements for the group are publicly available.
Details of trustees and key management personnel are given on page 1. No remuneration is paid to any of them from this charity.
## **16. LIFE TENANCY**
In 2012 the charity was notified of a legacy which included a share of a freehold property, which is subject to a life tenancy. The conditions for recognition of this income have not been met and therefore this legacy is not included as income in the accounts. The estimated value of the legacy is unknown at present.
Page 24