Thorner's Homes 2022 REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 Charitable Incorporated Organisation- Charity No.1189291 Regulator of S¢xial Housing No. 5111 CONTENTS Page 03 04 14 15 19 20 22 23 Reference and Administration Details Report of the Trustees Board Trustees responsibilities Report of the independent auditors Statement of f inancial activities Balance sheet Statement of cash flows Notes forming part of the financial statements Tru61ees Mis A Bennett Mr R Brazier Mr D Butt Mr M C¢ton Mr D Hankins Mr R Hi99ins Mr P F Meo¢her Mrs S Vaughan Cllr D Furnell (Choirmon Appointed on 4th July 2022 Chiof Exocutlv• & Cl•rk to th• Tru8t••• Mrs V Joynes MRICS Audltor8 Hopper Willioms & Bell Limited Chartered Accountonts, Highland House, MoyFlower Close, Chandlers Ford, Eastlei9h, S053 4AR Bankèrn Lloyds Bonk pl¢, 92-94 Above Bar Street, Southompton, S014 70T Sollcltor• Paris Smith LLP, l London Road, Southompton. S015 2AE R•gl8l•r•d Offle• 86 Thornor s Court, Henstead Road, Southampton, SOIS 2GU Registered Numbern Chority Commission 1189291 Regulotor of Social Housing 5111 The Trustees pre5en* their report and financial statements for the year ended the 31 December 2022 which should be read in conjunction with the information on page 3. Slructura, Gov•rnanc• and Management Thorner s Homes and its linked chority Reordon Somaritan Fund ore Charities governed by Schemes sealed by the Charity Commissioner, dated 30 April 2020 which established Thorner s Homes as a Charitable Incorporated Organisation (CIO). and 10 October1968 with subsequent variations for the Reardon Samoriton Fund. The Trustees listed on page 3 have held office during the whole period from the l January 2022 to the date ol this report excep* os indicated. When o voconcy occurs for o Trustee, Considerotion is given to the skills required on the Board ot the time and direct contact is made to persons with those skills. A meeting is arranged with the prospe¢tive Trustee to odvise them of the required commitment, explain the chority's objectives and assess their interest. A guided tour of the various properties is undertaken, a history and background of the Charity is given, a copy of the most recent oecounts ore provided and they ore invited to ottend o quarterly meeting as an observer. An induction file containing a copy of the governing instrument together with the policies and procedures of the charity is provided for the Trustees f uture ref erence. The charity monitors legislation, ond training is on-going os roquired. The Boord of Trustees meet quorterly, usuolly during the first week of Mor¢h, June, September ond December. The Annual General Meeting is held in June. From lime-to-time sub-committees comprising at leost four Trustees ore Creoted to rnoke use of Trustees, skills. At present there is o Ref urbishment Sub-committee that comprises of four Trustees wiih the appropriate skills in, accountancy, surveying, construction and architecture. In addition, the Chairman has regular conversotions, communications and meetings With the Chief Executive. Supplier invoices ond payments ore authorised by the Financial Trustee and payment mode online by Iwo outhorised signatories. The Trustees meet to review the quorterly occounts, f inoncial budgets, business plons, set weekly mointononce contributions, consider tenders, appoint contractors, set the policies, procedures, consider and plan for the f uture of the ¢harity ond receive reports from professional advisers ond the Chief Executive. The charity has adopted Chority Governonce Code for smaller charities. The Chief Executive takes responsibility for all aspects of the day-to-day management of the charity. The well-being of the residents and stof f is monitorgd by daily contact with the staff tgam and through meetings. The Chief Executive has authority to order goods or instruct contractors for work up to a Yolue of £2,500. All appointments of staff are made by the Trustees. Residents are kept informed of ony changes that are proposed for the doy to day running of the charity which will offect them, by woy of circulor. When major changes are being considered meetings are held with residents to discuss, consider and take account of their views and where possible incorporate them into any project. If it is necessary visits ore made to individual residents if they ore unable to attend a meeting. Publlc Banefll The Trustees follow guidance issued by the Charity Commission, the Regulator for Social Housing and the Notional Almshouse Association. The charity oims *0 provide quality sheltered olmshouse accommodation for ladies, with limited f inancial means and in need, in a caring safe environment. Applicants do not need to come from Southampton and this enables them to move nearer their families whilst retaining their independence. Staff monitor the residents well_being and enable them to access services which moy be avoilable to improve their quality of life and encourage them to participate in social activities. Objec•8 and A¢tivitlO8 Thorner's Homes exists to provide olmshouse o¢¢ommodation for poor widows, and single women aged 55 and over who require such accommodation due to poverty. financial hardship or other Choritoble need. To further these objects the chority owns and manages two housing schemes in Southampton in which individual f lat5 are provided for each resident: Thornels Court, Hensteod Rood, Southompton, S015 2GW Th1s scheme was originolly built os bedsits in 1971-1973. Originolly rernodelled to provide 38 one- bedroom f lats with communol facilities during 1999-2000. it will by the middle of 2023 provide 42 modern remodelled one-bedroom flats, with refurbished Communal facilities. Robert Thorner Court, 133 Regents Pork Road, Shirley, Southampton, S015 4AG This scheme was redeveloped in 2010-2014 to provide 60 fvio-bedroom flats for single occupancy with communol fo¢ilities. The charity hos two properties held os investment properties to ¢reote further income for the charity, both are normally let on assured shorthold tenancies and Iwo further properties, which were previously used for scheme managers occommodation. Achievement8 gnd Performqnce The Charity has continued to provide good quality olmshouse ac¢ommodotion. The Trustees were aware of the perceived dispority be￿een the quality of the accommodation at the two sites, arising because of the differing age of the two developments. For several years, the charity had been working on a major ref urbishment project for Thorner s Court, that involves the flats being upgraded to provide modern accommodation with improved heoting, bathrooms equipped with level access or low-level walk-in showers, instead of showers over boths and modern kitchens with eye level ovens, all de519ned to make the accommodation more appropriate for the age group. In addition, a previous staff unit is to be brought into use as resident accommodation. Following receipt of planning for certain aspects of the refurbishment plus three additionol flats and a second lift which was approved on 26th May 2020, the Chority commenced work on site on the 7th February 2022 with Mountjoy Limited as the main contractor and the project split into three phases. Phase one, consisting of 17 flats, including the staff unit, was completed on 15th August 2022. Whilst the original contract anticipated the work to *ake 54 weeks, several issues were discovered durin9 the work, which has led to the con*rac* being extended, despite running phases two and three concurrently. It is expected that the project will be completed by the end of August. Issues discovered included finding asbest05 that had been paid to be removed during the 1999-2000 remodelling hidden under screed ond electric cables and water pipes where the lift pit was being constructed that were not on any as built drawings. An application for grant funding towards the refurbishment project was made to Homes England and confirmotion was received on 22nd September 2022 tha* the application hod been successful ond that a conditional grant of £2,139,814 had been awarded. One of the conditions was that a grant 09reemen* should be signed and this occurred on 8th March 2023 and so the grant income will be recognised in the 2023 accounts. The first payment of the grant oward of £1,575,001 was received on 3rd April 2023. As a result of the deloys to the refurbishment project, at the 31 December 2022, only 69 of the current 98 fla*s ovailable were occupied. However, 22 of the vacancies were plonngd as part of phases two and three of the refurbishment and remodelling. To accommodate residents there were some moves between the two sites, leoving 2 voconcies in phase one at Thorners Court and 5 at Robert Thorner Court. During 2022, a new Housin9 Monager role was put in place, that amon9St other duties took over the line monagement of the Resident Scheme Monagers and during the refurbishment period was oble to give 9reater support to them, whilst the Chief Executive was otherwise engaged. The effect of the Housing Manager role has been positive. Through the involvement of the Resident Scheme Managers, Housing Manoger and the Chief Executive, tho welfare and personal sltuation5 Of residents is closely monitored. The chority aims to deal promptly with any concerns or worries that they may have and as o result hove o very low level of resident's comploints. Any matters brought to the ottention of the staff or trustees are considered f ully and dealt with in a fair and equitable way, with the resident bein9 f ully Informed. ThorneRs Court Since the 31 December 2021, one resident in rehobilitotion at a core horne stayed there permanently. There w•re four moves to Robert Thorner Court. There were no n•w oppointments. Robert Thorner Court Since 51 De¢ember 2021 the ¢hority sodly lost four residents. In oddition, three residents moved to care homes. There were four moves from Thorner s Covrt and there were five new appointments. Routin? and programmed maintenance hos continued throughout the year at both sites. Financigl review The overall loss for the year was £83,42612021= £34,6541- The defi¢it hos arisen due to the number of flats at Thorner s Court which have been vacant in preparation for and during the refurbishment project. The deficit on Sociol Housing octivity increased from £112,434 lost year to £155,242 due to the vocant f lats and increasing costs. The last two decades hove seen several attempts to bring social rents up to or down to occeptable levels and during the period 2002 and 2012 registered providers were given the opportunity to address any shortFalls in their weekly maintenance charge.However, it was considered by the then Trustees, that the levels of weekly maintenance charge were reasonable for the client group housed. From April 2016 there was pressure to reduce the level of weekly maintenance contributions from centrol government and over three years from that date contribution levels were meont to be reduced by l°/0 each year, thus reducing the overall Housing Benefit bill. This was postponed for almshouses and similar occommodotion to April 2017 and then further to 2022, but it had already been implemen*ed by the Charity for two years. The Trustees have considered the possibility that the work at Thorner's Court could justify a review of i*s weekly maintenance charge upwards. However, the differential between the two si*es is no* sufficient, given the additional bedroom ot Robert Thorner Court, to allow an increase in the weekly mointenonce charge a* Thorner s Court. In oddition to this, as the Charity had applied for 0 9rant from Homes England towards the work at Thorner s Court. it was not considered appropriate to increase the weekly mointenanee ehorge. In Jonuary 2023, the Regulotor hos restricted the rate of increase for weekly maintenance chor9es from the usual September CPI + l°/. to a maximum of 7 1.. The Trustees have used this maximum to increase the differential between the two bed flats of Robert Thorner s Court ond those at Thorner s Court, with the latter only increosing by 5 1. from April 2023. For most residents this will not hove a f inancial impact as they ore in receipt of Housing Benef it. Where they are not, they have the ability to discuss the matter with the Charity where additional support may be available, with the agreement of the Trustees. The charity hos received revenue f rom its listed investments, bonk deposits and investment properties totalling £36,22112021 £26,9041- During the year the bank deposits returned a higher level of income, as bank interest rates increased ond the NAACIF returns continue to be stable and acceptable. Valuo for Monoy Stondard Due to the relotively smoll size of the chority ond the limited resources ovoiloble the Trustees hove always been very cost conscious whilst ensuring that there is sufficient and appropriate expenditure, on staff ond focilities, to mointoin suff i¢ient ond oppropriote Core ond focilities for residents. The finances of the charity are very closely monitored and controlled with robust $￿temS of authorisation and control over f unds. All costs are carefully considered for both the short and longer- term benef it. Consideration is given to capitol improvements that enhance the facilities and reduce long term op•rotional costs roth•r thon o continuol cycle of routine mointenonce. All costs or• monitored against prior periods and budgets ond any variances are subject to scrutiny. The charity is committed to delivering eff ective and efficient services to residents and embraces the Value for Money IVFMI methodology os required by the Regulotor of Social Housing IRSHI. The charity seeks to ensure that all financial ond other resources are used to achieve the greatest benefits f or the charity, in working towards the furtherance of the aims of the charity, as described in the governing documents. Tho requirements of the RSH are lo include standord metrics,- the following show5 these metrics for the charity. They compare the performonce shown by these metrics with the charity's peers has been enabled by Acuity's benchmorking doto for smaller providers, those with less thon 1000 units, this is for the year ending March 2022. Mètrie l - Reinvestmènt % 2022 Charity 2021 2021/22 Charity Sector A - Completed propertie5 additions B- Completed properties closing net book value £nil £nil £ 8.930,267 £ 7,739,139 Result IA divided by B) 2.8° Commentary The charity has not acquired any new properties in 2021 or 2022 as it concentrates on upgradin9 the quality of the existing portfolio. Opportunities to expond the portfolio ore bein9 considered. Motric 2- Now Supply deliverod 2022 Charity 2021 Charity 2021/22 Sector A - New social housin9 units acquired B - New non-social housing units acquired C - Units of social housing owned at end of year D - Units of non-social housin9 owned at end of year 98 98 Result - Social housing IA divided by Cl Result - Non-social housing18 divided by D} Commentary The number of units operated by the charity has not changed during 2021 or 2022. As part of the refurbishment of Thorner s Court the number of social housing units operated will be increased by 4 new units during 2023. Metrlc 3- Gearlng % 2022 Charity £nil 2 483 714 2 483 714 2021 2021/22 Charity Sector £nil 4 565 042 4 565 042 Loans Less - Cash at bank and in hond A- Total B- Completed properties closing net book value £ 8,930,267 £ 7,739,139 Result IA divided by B) 127.81% (59.01° 16.5/. Commentary Like mony smaller chorities the charity does no* currently hove any borrowing5 but has cash funds ond therelore has a negative 9eoring percentage. The georing percentage has fallen during 2022 as funds have been utilised on the refurbishment project. Matric 4 - EBITDA MRI Interest eover % 2022 Chority 2021 2021/22 Chority Sector Operating Def icit Plus - Depreciation charge A- Total £1105,9641 £ 205,726 £ 99,762 £166,182) £ 201,610 £135,428 B - Interest poyable £nil £nil Result IA divided by Bl Not applicable Not applicable 248.1. Commentary Like many smaller charities, the chority does not currently have any borrowings and therefore ther8 is no interest payable. Matric S- Headline Social hou8ing cost per unit 2022 Charity 2021 2021/22 Charity Sector Charitable activities expenditure Less - Depreciation charge Less - Bad debts A- Total £ 812,896 £ {205,7261 £580 £ 607,750 £ 757,491 £1201,6101 1,248 £ 554,633 B - Total social housing units owned 98 98 Result IA divided by Bl £ 6,202 £ 5,660 £ 4,774 Commentary The charity's heodline sociol housin9 cost per unit is more thon the sector ¢omporlson due to economies of scole ond hos increosed since 2021 by 12.1. due to odditionol stoffin9 ond Costs osso¢ioted with the refurbishment project. Matric 6 - Operatin9 margin % 2022 Charity 2021 2021/22 Chority Sector Operoting Def icit Plus - Loss on disposal of housing properties A - Operating def icit f rom social housing £1105,9641 £nil 105,964 £166,182) £ nil 66,182 B - Sociol housing turnover C - Total turnover £ 657,654 £ 707b25 £ 645,057 £ 694,261 Social housing result IA divided by Bl Total result IA divided by Cl 116.11 % {15.01 % 110.31 .1. 19.51° 17.0 1. 16.5'1. Commentary The charity hos reported on in¢r•os•d def i¢it compored to lost y•or ond theref ore still hos negative operotin9 morgin percentO9es due to the number of flots ot Thorner's Court that have been vocont for the f ull y•or in pr•porotion for the refurbishment project. Melric 7- Roturn on eapital employod 2022 Charity 2021 2021/22 Charity Sector A- Operating Deficit £ {105,964) £166,182) B - Total assets less current liobilities £13,206,840 £13,350,266 Result IA divided by Bl (0.8) % 10.5} 1. 2.4°1. Commentary The operating def icit has resulted in a negative return on capital employed. 10 Inva8tment Pollcy The Trustees, investment policy is to hold quoted investments for the endowment funds while mointoinin9 liquid f unds to enable the charity to pursue f uture opportunities, which includes stroteglc purchases of investment propety and the investment in existing stock requiring ref urbishment. Fundraising Statement Although the charity does not undertoke widespreod fundroising from the general public, the legislation def ines f und raising as 'soliciting or othemise procuring money or other property f or charitable purposes. Such omounts receivoble are presented in our accounts as voluntory income" and includes legacies and grants. All solicitations are managed internally, withoul involvement of commercial participators or professionol f und-raisers, or third parties. The day-to-day management of oll income generotion is delegated to the Chief Executive who is occountoble to the Trustees. The charity has recoivod no Comploints in relotion to fundraising activities. Stoff terms of employment require all, to behave reasonably always and not to approach individuals f or f unds. The charity does not consider it necessary to design specific procedures to monitor such octivities. Fro0 r080ni08 The trustees consider that the reserves requirements are in line with the Charity Commission Guidelines. The policy ref lects their wish to commit safely as much os possible to our objectives whilst retaining f inancial stability and the potential to respond to new opportunities. A131 December 2022 the total funds of the chority were £13,266,840, analysed as follows.. 2022 2021 Reserves tied up in buildings Reserves restricted to donor nominoted purposes Reserves required to meet ongoing commitmenls Revaluation reseNes 10,272,328 170,386 2,783,908 40,218 8,217,246 171,619 4,921,183 40,218 13,266,840 13,350,266 The Trustees have odopted the recommendations of the Chority Commissioners in respect of prudent reserves for future repairs and at 51 December 2022 these were as follows.. 2022 2022 2021 2021 Other res8ryes as stated above 2.783.908 4,921,183 Cyclical repairs and maintenance fund Extraordinary repoirs f und 615,673 709.931 615,673 709,931 11.325,604) 11,325,604) The Trustees olso consider it prudent thot unrestricted reserves should cover one year's operating costs (excluding exceptional repoirsl which ore estimated at (500.000) 1500,0001 Fr•• r•serv•s 958,304 3,095,579 Rl8k management The Trustees have a risk management strategy which comprises o review of principal risks and uncertointies that the chority faces, the establishment of policies, systems and procgdure5 to mitigote those risks and the implementation of procedures designed to minimise or manage any potential impo¢t on the ¢hority should those risks moteriolise. Attention has been focused on non-finoncial risks arising from fire, heolth and safety of properties and residents. These ore managed by having robust policies and procedures in place. A key element in management of f inonciol risk is the statutory restrictions on incorne, gn5uring regular costs are met from that income ond sufficient reseNes are available to meet further capital expenditure includin9 replocement of mojor components. Complianee with Govèrnaneè and Financial Viability Standard During the course of the yeor the Trustees have reviewed the charities systems and procedures to ensure complionce with our chosen code of practice- Chority Governance Code lor smaller charities. The Trustees re9ularly review the f inancial viability of the charity ond decision5 regording Short term spending and longer-term investment are tested against these. Where appropriate the Trustees have taken advice and obtained reports from external professional advisors, this is an ongoing process. Following these reviews, the Trustees ore of the opinion that the charity complies with the Governance and Financial Viability Standard during the course of the year and up to the signing of the accounts. 12 Plans for future periods The Charity is plonning to improve its service *0 residents with oddi*ionol support over o grea*er period of the day. The Resident Scheme Manager roles are being replaced by three wardens working on a three-week shift pottern, providin9 coverage between 8am to 8pm and out ol hours cover where necessary. With additional support for residents and statutory compliance matters, the wardens will be able to assist with more sociol activities. In addition to this, the part-time in-house mointenance resource has proved to be invaluable in reducing costs of contractors and as such is planned to be increased. The aim of the Trustees is to make Thorners Homes the first choice in Southampton for women looking for olmshouses occommodotion Audltor8 The ouditor, Hopper Williams & Bell Limited Chartered A¢¢ountants will be proposed for reappointment ot the meeting of the Trustees. Approved by the Trustees on I21￿/2025 and signed on its behalf by: P. F. Meacher Chairman 13 The Trustees of the board are responsible for preporing the board report and the financial statements in accordance with applicable law and regulations. The board Trustees are also responsible for preparing the f inonciol statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accountin9 Standards and applicable lawl. The board Trustees must not approve the financial statements unless they are satisfied that they give o true and fair view of the stote of offoirs of the charity and of the surplus or def icit of the charity for that period. In preparing these finonciol s*atements, the board Trustees ore required to: 'select suitable occounting policies ond then opply them consistently,. 'observe the methods ond principles in the opplicoble Chorities SORP 'make judgements and a¢¢ounting estimates thot ore reasonable ond prudent; 'stote whether applicable UK Accounting Standard have been followed, subject to any material departures disc105ed and explained in the financial stotemonts; 'prepore the f inonciol stotements on the going concern bosis unless it is inoppropriote to presume thot the charity will continue in business. The board of Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transoctions and disclose with reasonoble accuracy ot any time the f inancial position of the charity and enable them to ensvre thot the f inoncial statements cornply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Privoto Registered Providors of Sociol Housing 2022. They ore olso responsible for sofeguordin9 the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud ond other irregulorities. 14 THORNER'S HOMES Opinlon We have audited the financial stotements of Thorner s Homes I'the charity'l for the year ended 31 December 2022 which comprise of the sta*ement of financial activities, the bolance, the sto*emen* of cash f lows and notes to the f inoncial statements, including significant accounting policies. The f inoncial reporting Iromework that hos been opplied in their preporation is applicable low and United Kingdom Accounting Standards, including ER&IQ2 Yhe Financial Reporting Standard applicable in the UK and Republic of Irelond. Iunited Kingdom Generally Accepted Accountin9 Practice In our opinion, the f inancial statements: give a true and fair view of the state of the chority's offairs as at 31 December 2022 and of its in¢omin9 resources ond oppli¢otion of resources for the yeor then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- ond have been prepared in accordance with the requirements of the Charities Act 2011, the Housin9 and Regeneration Act 2008 and the Accounting Direction for Privote Registered Providers of Social Housing 2022. Ba818 for opinion We Conducted our oudit in o¢¢ordon¢e wilh Internotionol Stondords on Auditin9 IUKI IISAS IUKII ond applicable law. Our responsibilities under those standards are f urther described in the Auditor s responsibilities for the audit of the finaneiol stotements section of our report. We ore independent of the charity in accordonce with the elhicol requirements that are relevant to our audit of the f inancial statements in the UK, including the FRC'S Ethical Standord ond we have f ulf illed our other ethical responsibilities in occordance with these requirements. Wg believe thot tho oudit evidence we have obtained is suff icient and appropriate to provide o basis for our opinion. Conclu81on8 relating to going concern In auditing the f inancial statements, we have concluded that the trustee s use of the going concern basis of accounting in the preparation of the f inancial statements is appropriote. Based on the work we have performed, we have not identified ony material uncertointies relating to events or conditions that, individuolly or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least12 months from when the financial statements ore 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 informgtion The other inf ormation comprise5 the information included in the annual report, including the tru5tees' report, other than the financial statements and our auditors report thereon. The trustees are responsible for the other inf ormation contained within the annual report. Our opinion on the f inancial statements does not cover the other information ond, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 15 THORNER'S HOMES Our responsibility is to read the other information and, in doin9 $0, consider whether *he o*her inf ormation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstoted. If we identify such material inconsistencies or opparent material misstotements, we are required to determine whether this gives rise to a material misstotement in the financial statements themselves. If, based on the work we have performed, we conclude thot there is a moterial misstatement ol this other information, we are required to report that fact. We have nothing to report in this regard. Matlers on which we are required to report by exception In the light of the knowledge and vnderstanding of the chority and its environment obtained in the course of the audit, we have not identified moterial misstatements in the trustees, report. We hove nothing to report in respect of the following Matters in relotion to which the Charities (Accounts and Reports) Regulations 2008 require us lo report to you if, in our opinion: the information given in the trustees report is inconsistent in any material respect with the f inan¢iol statements- or sufficient accounting records have not been kept; or the financial stotements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. Ro8pon8ibllit108 of iru•tO08 As explained more f ully in the trustees, responsibilities stotement Iset out on po9e . .], the trustees ore responsible for the preparation of the financial statements and for bein9 Satisfied that they give a true and fair view, ond for such internol control os the trustees determine is necessary to enoble the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the f inoncial statements, tho trusteos are responsible for assessing the charity'5 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the goin9 concern basis of accountin9 unless the trustoes either intend to liquidote the chority or to ¢eosa operations, or hove no realistic alternative but to do so. Auditor's re8pon8ibilities for tho audit of the financial statemonts We have been appointed os auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reosonoble assurance about whether the finoncial 5toternents as o whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable ossurance is a high level of assurance, but is not a guorantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from f raud or error ond ore considered material if, individually or in the 099re9Qte, they could reasonobly be expected to influence the economic decisions of users taken on the basis of these financial stotements. 16 THORNER'S HOMES Irregularities, includin9 f raud, ore instances of non-cornplionce 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 ore copoble of detecting irregularities, including f raud is detailed below: We obtained an understanding of the legal and regulatory Irameworks that are applicable to the charity, and the industry in which it operates. These include but ore not limited to complionce with the Chorities Act 2011, The Accoun*ing Direction for Private Reglstered Provider5 of Social Housing, UK Generally Accepted Accounting Practice and the requirements of Regulator of Social Housing. We obtained an understanding of how the charity is complying with these frameworks through discussions with monagement. We enquired with management whether there were any instances of non-compliance with laws and regulation5 Qr whgthgr they had knowledge of actvol or suspected fraud. These enquiries ore corroborated through follow-up audit procedures including but not limited to a review of legal and professionol costs, Correspondence and o review of boord minutes. We ossessed the susceptibility of the ¢horiVs f inonciol stotements to moterial mlsstatement, Including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identif icalion and testing of ony related party transactions and the testin9 of journal transactions thot arise from management estimates, that are determined to be of signif icant value or unusual in their nature. We assessed the appropriateness of the collective competence and capabilities of the engagement team, including ¢onsiderotion of the en90gement team's knowledge ond understanding of the industry in which the charity operates in, and their practical experience through trainin9 and participation with audit en909ements of o similor nature. A f urther description of our responsibilities for the audit of the financial statements is located on the Financial Reportin9 Council s website at: This description forms port of our ouditor's report. Hopper Williams & Bell Limited is eligible for appointment os ouditor of the chority by virtue of its eli9ibility for appointment as auditor of a company under section1212 of the Companies Act 2006. Use of our report Thi5 report is made solely to the charity's trustee5, 05 o body, in occordonce 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 on 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's trustees as a bodyi for our audit work, for this report, or for the opinions we have formed. 17 THORNER'S HOMES Hopper Williams & Bell Limited, Stotutory Auditor Highland House Mayflower Close Chandler s Ford Eastleigh Hompshire S053 4AR 2010612023 18 Thorn¢r$ Hom0$ Stot¢ment of financial a¢•ivi•ie$ for the yeur ended 31 December 2022 Note Unrestrieted Endowment funds lunds Total 2022 Total 2021 In¢om¢ from: Donations and Legacies Charitable activities.. Income from social housing lettin9S Investments 13.750 13.750 22,300 657.654 36.221 645,057 26,904 36.221 Totul In¢om• 707,625 707,625 694,261 Exponditura Charitable activities Investm&nts 812,896 693 812,896 693 757,491 2,952 Total expenditur• 813.589 813,589 760,443 Net expendlturo before Investmont galn8 /10•8•1 {105,964) 1105,9641 166,1821 Gains / (Losses) on investment assels 11,2331 22,538 31,528 Not •xp•ndltur• for lh• y•ur (82,193) 11,2331 183,4261 154,6541 Not movom•nt In funda (62,193) 11,2331 183,4261 154,0541 Roconelllatlon of funds: Total funds brought forward 14/15 13,178.647 IX.619 13,350.266 13,384,920 Total funds carried forward 13.096A54 170.386 13.266.840 13,350,266 The notes on pages 23 to 35 form port of these finonciol 5trJtements. 19 Thorn¢r$ Hom•$ Balan¢¢ sheet ot 31 December 2022 Note 2022 2021 Flxod assot$ Tangibla ossats Invostments 10,355,388 531A66 8,502,098 509,028 Total fixed 088et8 10.886.954 8,811,126 Current a88et8 Debtor5 Cash ot bank and in hand 10 34.794 2A83.714 57,417 4,565,042 Total ¢urronl as80ts 2,518,508 4,622,459 Creditors.. amounts falling due within one yeor 1138,0221 183,5191 N•t ¢urr•nt a•••t• 1379,886 4,539,140 Total a•8ets1088 current Ilabllltl•• 13,266,840 13,350,266 The fund8 of tho Charlty: Endowment funds 13 170.386 171,619 Accumulated profit Revaluotion reserve IA58.304 40.218 3,595,579 40,218 Generol funds 14 IA98,522 3,635,797 Designoted funds 14 11,597,932 9,542,850 Total unrestrleted funds 13,096,454 13,178,647 Total Clbarity fund8 14/15 13.266.840 13,350,266 The notes on page5 23 to 35 form part of these financial statements. The finonciol stotements on poges 19 to 35 were opprovèd by the Boord of Trusteas, outhorised for iSSLJe on 121tW2023 and are signed on its beholf by=_ P F Meocher Chairman R Higgin5 Truslee 21 Thorn¢rs Homes Statement of cash flows for the yeur ended 31 December 2022 Note 2022 2022 2021 2021 Nat Cash inflow from operations 18 141M67 90,429 Ca8h inflows from investing activities Investment income Payment for f ixed assets 36.221 12.259.016) 26,904 126,0661 Nel ca8h Iu8edl/gon•ralod by Inv•8tlng a¢llvlll•8 12,222,795) 838 Chunge In c08h and ¢08h •qulvul•nt8 In th• r•portlng p•rlod {2,081,3281 91,267 Caah and oqulvalonts ot the beginning of thè roporting poriod 4,56S,042 4,473,775 Cash and ca8h •quivalents at th• •nd of the reportin9 period 2A83,714 4,565,042 The notes on pages 25 to 35 form port of these finonciol stotgments. Thorn¢r$ Hom0$ ot¢$ forming Ptsrt tsf the finaneiul $•ot¢m¢nts for the year ended 31 December 2022 Accounting Policies The Charity is constituted os a Charitable Incorporated Organisation ICIOI and is reglstered in En9land and Wales. The registered office is 86 Thorners Court, Henstead Road, Southampton, SOIS 2GU. The principal accounting policies adopted, judgernents and key Sources of estimation uncertointy in the preparation of the financial stalements are as follow5- 84Y¥i$ ofprnparahon The finonciol stot&menls hove been prepored in o¢¢ordonce with Accounting ond Reporting by Choritles.. Statement of Recommended Proctice opplicoble to Chorities preporing their occounts in o¢¢ordon¢e with thè Finoncial R&porting Standard opplicablè in the UK and Rèpublic of Irèlond IFRS1021 lèffè¢tivè l Jonuory 20191- (Chorities SORP IFRS10211, tha Finon¢iol Rèporting Slondard opplicoble in the UK and Republic of Iralond IFRS1021 and in compliancè with th& Accountin9 Direction for Privote Re9lStered Providers of Sociol Housing from April 2019. Thorner s Homes maets tho definition of o public benefitentity under FRS102. Assets and liabilities aro initially reco9nised at historical cost or tronsaction volue unless otherwise stated in the relevant accounting policy note. Thè accounts include thè results of both Thorner 5 Home5 and the Permanent Endowrnent Fund of The Dunford Legacy and Reordon Samarilon Funds, which are combinèd for reportin9 purposes under the linking direction issued by Ihe Charity Commission on 9 May 2019. Pr•porallon ol the aeeounls on a 9olng ¢on¢wn ba81• The chority hos substontiol reseThes thot ore ovoiloble to cover the plonned refurbishment programme at Thorner's Court. Tho Trustges consider that there orè no material uncertainties about thè charity's obility to continuo as a 90ing concern. The accounts have therefore bèen preporèd on a going concarn basis Judgemen*8 In appfylng accounling polK￿* and*ey8ource8 ol es*imalion uncerh7inty In preparing these financial statements the Trustees have not made any significant judgements in applying ihe policies, but have considered the followin9 forms of estimation uncertainty: Investment properties The fair value of properties at the balance sheet date Fixed ossets Residuol Yolue of ossets- ond the Economic lives of ossets Volue of ossets disposed of Debtors Debtors are assessed to identify net recoverable amounts. 23 Income is recognised in the period in which the Chority is entitled to receipt when receipt is proboble and when the amount con be measured with reasonable certainty- Income is deferred only when the Charity has to fulfil conditions before becoming entitled to it. The principal sources of income ore rents receivable and social charge income which is reco9nised in the period to which they relate. Interest on funds held on dep051t is included when receivable and the amount con be meosured reliably by the Charity,- this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared ond notification has been received of the dividend due. Thi5 is normally upon notificotion by our investment odvisor of the dividend yield of the investment portfolio. So¢lolHou8lng Granl Sociol Housing Grants hove been reco9nised os income under the performonce model. FixadA8salA andD•prneialion Housingproperti08 Housing properties have been split between their lond and structure costs and a spocific set of major components which require periodic replocement. Replocement of such components is capitalised, and depreciated over the useful econornic lives of the components (excluding landl ot the followin9 rotes.. Main fabrie Roof Iconvèntionoll Roof (Flatl Mechanieol & electrical Bothreoms Kitchens Windows and exlernol doors 100 years 50 years 20 years 20 years 20 years 20 yeors 20 yeors Plont & Equipment ore deprgcioted ovgr their expected useful economic life of 5 - 20 yeors. Ass&ts in course of devglopment ore not dgprecioted until the point in timg thot they ora brought into US9. Inve8tmanl8 Investments held as fixed assets are sloted at market value. FundAceounling General funds are unrestricted funds which are avoilable for use at the discretion of the Trustee5 in furtherance of the general objeclives of the Chority and which have not been desi9nated for other purpose. Designated fund5 ore unrestricted f unds which have been eormarked by the tru5tee5 for a specif ic purpose. Restricted f unds ore funds which ore to be used in occordonce with specif 1¢ restrictions imposed by the donors or which hove been roised by the Chority for o specif ic purpose. Th& Charity hos permanènt endowmènt funds for which the Trustees havè to invèst thè capital in pèrpetuity. Cycliealrepairs andmainlenanee lund The Trustees have adopted the recommendations of The Almshouses Association in respect of cyclical maintenance funds. Accordingly, the recommended fund level is reviewed onnually and a transfer made from accumulated surplus to maintain the cyclical maintenance reserve at the required amount if required. 24 Exfraordin¢Yryr•pairs fiind Thè Trustèés hove odopted the rècommèndotions of Thè Almshouses Asso¢iotion in r8spè¢t of th axtroordinory rèpairs fund. The fund levèl is mointoined in accordonce with thès& recommèndations. Debiors Trade and other debiors are reco9nised at the settlement amount. Cash aibank andin hand 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 acquisition or opening of the deposit or similar accounts. Flnon¢lollnslrnmenls The Charity only hos finonciol ossets ond finonciol liobilities of o kind thot qualify os bosic finonciol instruments. Basic finonciol instruments ore initiolly recognised ot tronsoction value ond subsequently measured at their settlement value. Crnditor8 andprowwona Craditors ond provisions aro recognised where the Charity hos a present obli9Otion resulting from o past event that will probably result in the transfer of funds to o third paty and the omount due to settle the obli9ation con be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement arnount after allowing for any Irode discounts due. Charltabl• aellvltl•8 Ineom• 2022 2021 Income from sociol housing lettin9S Management charges recèivablè Service char9e income 428.844 228.810 427,128 217,929 657,654 645,057 Expenditure on sociol housing octivity 812,896 757,491 Operating deficit f rom social housing activities 1155,2421 1112,4341 Void losses 247.679 217,962 Accommodation in management Housing for older people at sociol rent level. Scheme Monoger accommodotion 98 98 Totol owned loo 100 25 Invo$lm•nt in¢om• 2022 2021 Rental income from investment properties Income from listed investments Bonk Interest receivoble 22,428 2,861 1,615 3.034 8,347 36,221 26,904 Charitable activit108 expendituro 2022 2021 Housing expandilur6 Staff costs Activities undertoken directly Support costs 104,358 526,910 181.628 91,524 487,650 178,311 812.896 757,491 Analy818 of nel expendlture for the year 2022 2021 Unre8trlcted Fund• Net expenditure before investment 90ins Gains on investment asset5 1105.9641 23.rn 166,1821 28,260 182,1931 137,9221 Endowm•nl Funds Net expendilure before inveslmenl goins ILossesl/Goins on Investment ossets 11,2331 5,268 11,2331 Total Funds 183,4261 154,6541 There was no income or expenditure relating to Endowment Funds in 2022 or 2021 Analy818 018UPPOrt Costs 2022 2021 Staff Costs Audit Other 127.391 12.000 42.237 121,945 13,890 42,476 181.628 178,311 Stoff ¢osts 2022 2021 Wages and salories Sociol security costs Pension 205.827 17,889 8,033 190,525 15,588 7,356 231,749 213,469 The average number of employees lincluding executive management team) durin9 the year was as follows.. 2022 2021 Number Number Administration Housing, support ond core None of the Trustees hovg been poid ony remun9rotion, expenses or recgivgd ony other benefits from tho Chority or any related èntity12021: £Nill. One employee recelved emoluments of more thon £60,000. This wos in the £70,000 to £80,000 band in 2022 and 2021. The key management personnel of the Chority is considered io be Ihe Chief Executive Officer. The totol employee benefits of key mono9ement personnel of ihe Charity were £78,89412021- £75,6061. 8 Flxed a•aet• Assels in Completed cour8? of properlie8 d•velopment Scheme manager properties Plant and Equipmont Total Cost At l Jonuory 2022 Additions Tronsfèrs Disposals 9,649,949 1,295,756 89,500 14500001 138,065 961,672 189,5001 446,738 33,421 1,608 10,268,173 2,259,016 1456,6061 At 51 December 2022 IOA98Wg 1,010,237 446,738 35,029 12,0gOA83 Depreciation At l January 2022 Charge for the year On disposals 1,910,810 194,108 1436h061 41,231 8,218 14,034 3,400 1,966,075 205,726 1436,6061 27 At 51 December 2022 1,668,312 49A49 34 1,735,195 Net book valua At 31 December 2022 8,930,267 1,010,237 397289 I7￿95 IOk55,388 At 31 December 2021 7,739,139 138,065 405,507 19,387 8,302,098 Included within completed Properties is freehold land held at a cost value of £65,46512021.' £65,465). All properties are f reehold properties. Inve8tment8 Listed invo¥tmen18 Inv08tment proportie¥ Total Market value at l January 2022 Revaluation Iloss1/90in 79,028 12,4621 430,000 25,000 509,028 22,538 Markèt value at 31 Decèmber 2022 76,566 455.000 531.566 The Trustees hove reviewed, usin9 internol expertise, the volue of the investment properties and they have been included ot fair volue. The listed investments comprise: Co•t 2022 Murkot Volu• 2022 2021 2021 G•n•ral Fund 43,295 NAACIF Income shores 17,860 17,860 38,232 59,461 Dun8ford L•go¢y Fund 0,249 NAACIF Income shores 1,798 1,798 5,677 5,860 Reardon Samarltan Fund 36,980 NAACIF Income sharès 9,939 9,939 32,657 33,707 Total investments 2?￿97 29,597 76566 79,028 28 10 Dobiors 2022 2021 Rent and seryice charge Provision for doubtFul debts Prepoyments ond o¢¢rued income Donotions receivoble 6.588 19491 29,155 3,230 11,5301 33,717 22,000 34,794 57,417 11 Creditor8: amount8 falling due within one year 2022 2021 Trado creditors Rent and service chargos roceived in odvonce Other creditors Tax ond social security Accruals and deferred income 18.834 18.644 60.658 7.912 32.574 27,092 17,339 2,386 6,463 30,039 138,622 83,319 12 Flnan¢lul In8trum•nl8 The Charity's financial instruments moy be onolyseJ os follows: 2022 2021 Finan¢iol a88•18 Financi¢l ossets meosured ot foir volue Ihrough the stotement of finon¢i¢l octivity 76,566 79,028 Financial assets measured at fair voluo through the stotement of financial oclivity comprise of listed f ixed asset investments. 13 Porn)onon• •ndowmont Dunsford ¢ordon Legoey Stsmtsriltsn Fund Fund P¢rmun¢nt Endowment Fund Total At l Jonuory 2022 Loss for the yeor 5,860 11831 55,707 11,0501 132,052 171,619 11,2331 At 31 Decambar 2022 5,677 32,657 132,052 170,386 Represented by: Freehold lond Cash at bank and in hand Investments 65,465 66,587 65,465 66,587 38,334 5,677 32,657 5,677 32,657 132,052 170,386 Prlor Y•ar At l Jonuory 2021 Goin for the yeor 5,376 50,925 2,784 132,052 168,351 5,268 At 31 December 2021 5,860 33,707 132,052 rn,619 Roproaenled by: Freehold land Cosh at bank and in hand Investments 65,465 66,587 65,465 66,587 39,567 5,860 33,707 5.860 33,707 132,052 171,619 The Permanent Endowment Fund represents freehold land plus monies are from the sale of- 10 Lawnside Road Land adjoining 9 Hensteod Rood Copitol goins on reolised inveslments 42,255 2,750 21,582 06,587 The Dunford Legacy relates to o bequest from 1936 for which no will con be found ond therefore the funds can never be used (per the Charity Commi&8ionl. The Reardon Samaritan Fund is o linked charity Ino. 11892911 governed by a 1968 scheme requirin9 the funds to be kept as a Permanent Endowment. The freehold land and any related proceedsfrom sale must also be treated os a Permanent Endowment. 14 Unro$tri¢t•d lunds Generul Desl9na•ed funds Total Soeiol housing assets funds Cyelieal Extraordinury maintenanee repairs At l Jonuory 2022 Nat loss Transfers 3,035,797 182,1931 12,055,082) 8,217,?40 615,675 709,931 13,178,647 182,1931 2,055,082 At 31 December 2022 1.498.522 10.272.328 615.673 709.931 13.096.454 Ropre8enled by: Tan9ible assets Investments Debtors Cosh ot bank ond in hcnd Cr&ditors'. omounts falling due within ono yoor 17,595 493,252 34,663 10.272,328 10,289,923 493,232 34,663 1,091,523 615,673 709,931 2,417,127 1138,4911 1138,4911 IA98,522 10.272.328 615.673 709.931 13,096,454 31 Unr•$tri¢l•d fvnd¥ {Prlor yearl Generul Desl9na•ed funds Total Soeiol housing assets lunds Cyelieal Extraordinury maintenanee repairs At l Jonuory 2021 Nat loss Transfers 5013,099 137.9221 60.020 8,277,206 615,073 709,931 13,216,569 157,9221 160,0201 At 31 December 2021 3.635.797 8.217.246 615.673 709.931 13.178.647 Ropre8enled by: Tan9ible assets Investments Debtors Cosh ot bank ond in hcnd Cr&ditors'. omounts fallins due within ono yoor 19,387 469,461 57,417 8,217,246 8,236,633 469,461 57,417 5,172,851 615,673 709,931 4,498,455 183,3191 183,5191 3,635.797 8.217.246 615.673 709.931 13,178,647 32 15 o1h•r unr•strid•d funds Th& followin9 unrestricted funds ore in¢ludèd in thè A¢eumuloted Profit on thè Bolon¢è Shèet ond os such form port of Ganèrol Funds= Rogerson & Rose bequests In 1991 a bequest of £25,000 was mode by o local resident. Further amounts of £25,704 and £158,500 wèrè recèivèd in 1992 ond ?005 rÈspe¢tivèly. Thè Will did not specify o purposè for whi¢h thè bequest was moda ond occordingly èoeh amount hos bè&n includèd in the incomè and èxpènditur8 ¢¢¢ount in th& year of raceipt. Tha Trustaes hove ograed that a formol record should be kept of tha usè of this f und which has been, and will Continue to be. used for the benefit of the residents. Notional interest is added to the f und balance on o monthly basis. During 2009, a bequest of £5,000 was received from a former Trustee, ond the Trustees odded this omount to the fund. Detoils ol movements on the fund for the yeor ended 31 December 2022 ore os follows.. 2022 2021 At l Jonuory 2022 Notional interest receivable Exp&nditure in the yeor In,828 900 11,483} 175,519 400 12,0911 At 31 Dec8mbgr 2022 173,245 175,828 Brenda Vera Cooper Wlll Tru•• The daughter of a former rèsident left on omount in a will trust for thè banefit of Thorner s Homès. The copital is held by the Trustees of that will trust and Thorner s Homes receives income pèriodically when thè Trustèe5 decide to mokè o dislribution. Thorner s Homes have no inlluencè over the investment policies or distribution policies of ihe Brendo Vero Cooper will trust. 2022 2021 At l January 2022 Income for the year Expenditure in the yeor 149.043 13,750 127,043 22,000 At 31 December 2022 162,793 149,043 16 Housing grant Included in Charity funds are Housin9 Grants lotalling £6,718,66712021.' £6,718,667) paid as a form of f inancial assistance under Section 19 of the Housing and Regeneration Act 2008. 33 17 R•¢on¢iliolion of not in¢oming rosour¢o$ to n•fr ¢o$h inflow from op0r(Ition$ 2022 2021 Net movement in funds 183A261 134,6541 Depreciotion Chorges ond loss on disposol Goins on invèstments Inv&stm&nt incom& Decrease /llncreasel in debtors Increase in creditors 205,726 122,5381 136,2211 22,623 55,303 201,610 151,5?81 126,9041 125,9471 5,852 Net cash provided by operations MIA67 90,429 18 Analy818 of chang08 In not debt Al l January2022 Cash Flow• At 31 ￿¢0Mb•r 2022 Cosh 4.$65.042 {2.081.3281 2A83.714 19 Con•lng•nl Ilablllll•• There were no conlingent Ilobilities as ot 51 December 2022 or as ot 51 December 2021. 20 Capltol Commltm•nl8 2022 2021 Auihorised but not controcted for Authorised ond controcted for 4,004,754 ,901,177 On 8 February 2022, the project to refurbish 38 flats and provide 4 new flats at Honsteod Road commenced. Phase I wos completed in Au9USt 2022 ond the remainder of the project will bs completed in 2023. The project is the subject of a grant application from Homes Englond. 21 Operating Lease Commitments At the year-end date, the Charity had outstondin9 commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows: 2022 2021 Within one year Between two and five years 10,656 31,656 4,608 14,592 42,312 19,200 22 Relot¢d purty tronso¢tions One of the Trustees, Poul Meoeher, is o director of Ft Pay Limited ond Fiander Tovell Limited. During the financial year, Ft Pay Limited provided payroll services totalling £72412021= £9501 and Fionder Tovell Limited provided VAT odvice for the refurbishment project totolling £2,59112021- nill. At 51 December 2022, nil was outstanding for both companies12021: £241 for FT Pay Limited). One of the Trustees, Daniel Butt, is a director of Now Sutvey (Southernl Limited. During the financial year, Now Sutvey Isoutheml Limited provided surveyor services totallin9 nil12021.' £781. At 51 December 2022, nil wos outstonding12021- nill. 23 Post balane• sh•at 6vant Subsequent to the yeor end, the charity wos in receipt of o grant from Home5 England for £1,575,001 towards the rafurbishmant project at Henstaad Road. This in¢oma with be racognised in th& finan¢iol statomonts for tha year endèd 31 Decembèr 2025. 35 Thorner's Homes Audit Findings Report For the year ended 31 December 2022 ## Contents Section 1: Management letter points arising from audit work .................................................................................................................................................................. 1 Section 2: Adjusted misstatements ............................................................................................................................................................................................................ 2 Section 3: Unadjusted misstatements ........................................................................................................................................................................................................ 3 Section 4: Going Concern ............................................................................................................................................................................................................................ 4 Section 5: Assignment Director Contact Details ........................................................................................................................................................................................ 5 ## Audit findings for Thorner's Homes for the year ended 31 December 2022 The Trustees Thorner's Homes 86 Thorner's Court Henstead Road Southampton Hampshire SO15 2GU Audit findings for Thorner's Homes for the year ended 31 December 2022 ## Dear Trustees In accordance with our normal practice we are writing to draw your attention to various matters which arose during the course of our audit of the accounts for the year ended 31 December 2022. ## Audit opinion There are no expected modifications to the auditors’ report on the financial statements. ## Adjusted and unadjusted misstatements The adjusted misstatements determined during the course of our audit, are summarised in section 2 of our audit findings report. A schedule of unadjusted misstatements over our audit triviality threshold of £10,050 is included in Section 3. ## Letter of representation A draft of our letter of representation, detailing the representations which we have relied upon for our audit, will be sent separately for your consideration. ## Internal Controls The control environment at the charity was good and the key financial controls that we would have expected to see were in place. ## Improvements in the accounting and internal control systems As you are aware from our letter of engagement, our audit procedures were directed towards testing the accounting systems in operation upon which we have based our assessment of the accounts. Section 1 of this report contains details of matters identified during the course of our audit and our recommendations for improvements. This may not contain all areas for improvement that are present in your system. In making our recommendations, we have considered the size of the charity and the number of staff you employ. Responses from the Finance Manager are included in the final column. ## Other relevant matters relating to the audit We have discussed with you the fact that we provide additional services to the charity in addition to acting as auditors. We wish to confirm to you that in our opinion the provision of such services does not affect our independence as the additional services provided are of a routine compliance nature and the Finance Manager and Trustees take any decisions where judgement is required. Other matters required by Auditing Standards to be communicated There are no other matters that we are required by auditing standards to communicate to you. We would like to take this opportunity of expressing our thanks to all of your staff for their assistance during the course of our audit, in particular Vicky Joynes & Nicola Carol-Scott. Please note that this report has been prepared for Thorner's Homes. It must not be disclosed, quoted or referred to third parties without prior written consent. No responsibility is assumed by us to any other person. Yours faithfully HWB 1 ## Section 1: Management letter points arising from audit work |||Issue (including financial
impact)|Implication/
Consequence|Risk
H/M/L|Recommendation|Management response|Timescale|| |---|---|---|---|---|---|---|---|---| ||1|The cost of works done on|The value of the assets|L|It is recommended that|It is not practical to obtain an|N/a|| |||the refurbishment project|disclosed in the accounts is||valuations are obtained as|accurate valuation of the||| |||was not accrued for activity|understated||close to the year end as|work on the project to tie in||| |||between the valuation|||possible.|with our financial year end||| |||certificate at 14 December||||as the monthly valuation||| |||and the financial year end.||||exercise is a detailed||| |||Based on the days worked||||procedure involving a||| |||between the valuation on 14||||number of parties. Accruing||| |||December and the valuation||||for the unvalued work would||| |||on 17 January, the value of||||introduce a debateable||| |||work that should be accrued||||element into the fixed asset||| |||is £112,390. The treasurer||||additions and would distort||| |||has assessed the work as||||the net current assets figure||| |||being to the value of around||||as there will was not an||| |||£75,000. These amounts are||||equivalent figure last year||| |||not considered material for||||and will not be next year.||| |||adjustment.||||||| |||||||||| 2 ## Section 2: Adjusted misstatements There are no adjusted misstatements above audit materiality of £201,000. 3 ## Section 3: Unadjusted misstatements Schedule of unadjusted misstatements above audit triviality of £10,050 ||||Description|Nominal|Balance
Dr|Balance
Dr|Sheet
Cr|Statement of Financial
Activities
Dr
Cr|Statement of Financial
Activities
Dr
Cr|| |---|---|---|---|---|---|---|---|---|---|---| ||||||£||£|£|£|| |||||||||||| ||1|Estimated value of work completed by
contractors in December||Assets in course of development
Accruals||||112,390|112,390|| ||2|Estimated
property|increase in investment|Investment property
Gain on investment assets|55,000||||55,000|| |||||||||||| |||Total|||55,000||-|112,390|167,390|| |||||||||||| 4 ## Section 4: Going Concern ## Trustees’ assessment After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. ## Work performed by HWB - Review latest budgets to ascertain whether going concern has been correctly addressed. - Enquire into whether there have been any material new commitments, borrowings or guarantees post year end. Enquire into whether there have been disposals or acquisition of material assets or any appropriation or destruction of assets. Consideration of any financial uncertainties regarding the charity’s financial sustainability as a result of Covid-19. ## Conclusion The charity has made a deficit of £83,426 for the year ended 31 December 2022 and the balance of funds at that date is £13,266,840. The charity is projecting to make a deficit of £205,394 in the year ending 2023. Funds at that date are therefore forecast to be £13,061,446. Based on this, our assessment is that the charity continues to be a going concern and our audit report is not modified in this respect. 5 ## Section 5: Assignment Director Contact Details Michaela Johns (FCCA) Audit Director T: 023 8046 1256 M: 07769 730189 E: michaela.johns@hwb-accountants.com ## Address HWB Chartered Accountants Highland House, Mayflower Close, Chandlers Ford Eastleigh, Hampshire, SO53 4AR HWB Chartered Accountants HWB Chartered Accountants HWB Accountants @HWB_Accountants HWB Accountants