**The E. Hayes Dashwood Foundation** 

# **Trustees’ Report and Financial Statements for the year ended 31 December 2021** 

**REGISTERED CHARITY NUMBER: 1189334** 



**The E. Hayes Dashwood Foundation** 

## **CONTENTS** 

____________________________________________________________________________ 

## **CONTENTS** 

||Page|
|---|---|
|Legal  and administrative details|1|
|Report of the Trustees|2-9|
|Independent Auditor’s Report|10 - 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Statement of Cash Flows|15 - 16|
|Notes to the Financial Statements|17-31|





**The E. Hayes Dashwood Foundation** 

## **LEGAL AND ADMINISTRATIVE DETAILS** 

____________________________________________________________________________ 

## **Trustees & Governors:** 

Vice-Admiral Sir Tom Blackburn KCVO CB Trustee - also Chairman. Major General Bryan Dutton CB CBE  + Trustee Air Commodore Iain McCoubrey * Trustee (Retired 30/09/2021) Colonel Louise Green + Trustee Commodore Annette Picton MBE RN* Trustee Captain Colin Stewart LVO Trustee Lt. Colonel Nick Tuck* Trustee Commodore Bill Walworth CBE RFA+ Trustee Lt. Colonel Jonny Lowe MBE.* Trustee Captain Tim Martin OBE RN Trustee Professor Michael Almond FRCP* Trustee 

- + denotes membership of the Building Committee. 

- denotes membership of the Housing Management Committee. 

The Trustees for most purposes of charity law and throughout this report are collectively referred to as the Board. 

|**Foundation Director:**|Nicholas Murray Esq. FLS|
|---|---|
|**Charity  number:**<br>|1189334|
|**Principal Office:**|26E Radbourne Road|
||Balham, London, SW12 0EF|
|**Bankers:**|Barclays Bank plc|
||99 Hatton Garden|
||London, EC1N 8DN|
|**Surveyors:**|Einar Roberts Esq Cluttons LLP|
|**Estate Managers:**|Cluttons LLP, Portman House|
||2 Portman Street|
||London W1H 6DU|
|**Solicitors:**|Trowers & Hamlins LLP|
||3 Bunhill Row|
||London EC1Y 8YZ|
|**Accountants:**|Charity Accounting Services Limited|
||Trident Business Centre|
||89 Bickersteth Road|
||London SW17 9SH|
|**Auditors:**|Knox Cropper LLP|
||Office Suite 1, Haslemere House,|
||Lower Street, Haslemere|
||Surrey, GU27 2PE|



1 



**The E. Hayes Dashwood Foundation** 

## **TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

## **CHAIRMAN’S REPORT** 

The change of charitable status of the Foundation was completed in May 2021 when the Permanent Endowment of the E Hayes Dashwood of Aston Rowant House Oxford Foundation was vested in the E Hayes Dashwood Foundation (a Charitable Incorporated Organisation). 

The Object of the Foundation remains to provide housing for former members of the armed forces and mercantile marine who have encountered a degree of disability or infirmity in their lives and require accommodation for themselves and potentially their families, in homes which are appropriate for their needs. 

As was the case in 2020, the management of the Foundation in 2021 was dictated by the coronavirus pandemic. Mercifully, again no beneficiary was infected by Covid19. The managing agent was able to sustain regular regulation-compliant visits to the estate to deal with matters for both beneficiaries and commercial tenants. The Foundation Director generally worked from home but was present on the Estate when breaks in Lockdown permitted. 

Income was maintained through the year and overall income was £1.481,239 compared with £1,452,764 in 2020 and expenditure £1,414,7949 compared with £1,347,689 in 2020. With careful planning, contractors were able to maintain a steady programme of work on the estate and a further 7 flats were fully refurbished and 7 had less extensive refurbishment. Installation of new windows as part of the upgrading programme was able to continue, only carrying out works in flats which were vacant and undergoing other refurbishment work. Regulatory testing in homes across the Estate continued. 

Plans for future work were discussed and developed with Cluttons surveyors who continued to oversee work on the Estate throughout the year. 

It was also possible to interview and house new beneficiaries, using of on-line technology for meetings instead of meeting in person; Five moved into flats on the Estate during the year. 

Trustees met principally on-line to keep abreast of work on the Estate and the health and welfare of the beneficiaries as the year progressed. Trustees met in person in November with former Governors of the unincorporated charity and others who have supported the Foundation to mark the 75th anniversary of Mr Dashwood establishing the Foundation. 

Vice-Admiral Sir Tom Blackburn KCVO CB 

Chairman 

2 



**The E. Hayes Dashwood Foundation** 

## **TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing Document** 

The Foundation is controlled by its charity’s governing document and is now an incorporated charity. 

The Foundation was created by the late Edward Hayes Dashwood in a trust deed dated 20 November 1946 and amended by a Scheme of the Charity Commissioners dated 12 December 1978 to allow the current system of charges upon beneficiaries of its residential accommodation. The charity was incorporated in 2021. It is a member of the National Association of Almshouses. 

## **Recruitment and appointment of new trustees** 

The Governing Document provides that the management of the Foundation shall be under the control of a Board of Trustees, whose number shall not be more than twelve or fewer than eight. 

The Board may act in all matters within its jurisdiction notwithstanding any vacancy or vacancies so long as there are five Governors present 

The principal competencies required of members of the Board are: 

- Experience of armed services or the merchant navy at a senior level 

- Responsibilities and requirements of beneficial housing 

- Understanding of the effects of physical and mental disability 

- Senior financial and/or management control 

- Experience of charity trusteeship in an appropriate sector 

Each of the present Trustees meets two or more of these competencies and in the event of a vacancy it is usually the case that recommendations will be made by existing Trustees of at least one candidate who could bring the requisite skills to maintain a complete competency set and would also have time consistently to devote to the Foundation’s objectives. 

Appointments are subject to election by the Trustees as under the Governing Document. However, the Trustees aim to elect only candidates who have the unanimous support of the Board. In any process of bringing recommendations for candidature the Board will have regard to the declaration of the Governing Document  (which is not so as to impose any obligation upon it) that candidates shall include business men with experience in trade finance or other matters or have senior management service with the Royal Navy, the Army the Royal Air Force, joint Armed Services bodies, the Mercantile Marine or charities for the benefit of armed services personnel or the Mercantile Marine. No external body is entitled to appoint a Trustee. 

Although not expressly provided for in the Governing Document, women are equally eligible for any appointment and board members are keen to ensure that a suitable mix of both men and women are appointed to the board to enhance the equality aims of the Foundation. 

Apart from the first charity trustees, every trustee must be appointed for a term of five years. Trustees may from time to time appoint a Chairman from among themselves to hold office for such period as they may determine. 

3 



**The E. Hayes Dashwood Foundation** 

**TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## Induction and training of new trustees 

New Board members undergo a familiarisation period, which includes time visiting the Foundation’s properties and meeting some of its residents. Briefings are given on the governing document, legal obligations under charity law, the financial and administrative position of the charity and the legal and practical constraints under which benevolence is operated and the housing provided. New Board members also meet with colleagues on the Board, our principal professional advisors and their key staff in an informal setting. 

Professional advice is sought on new issues or developments which might impact on any aspect of the charity’s undertakings and the opportunity is taken for the appropriate advisor to attend before the Board to give a training brief. 

## Organisational structure 

The Board plans to meet four times a year to decide and monitor financial and administrative policies. It also receives reports and recommendations from its Building and Housing Management Committees which are both established with defined terms of reference and a membership which is elected by the Board. Concurrently, it receives reports from its managers and other professional advisors and reviews progress and performance. 

The Foundation Director (who is the sole employee) is responsible to the Board for management, administration and achieving the Board’s policies and objectives. 

The day-to-day management of the properties, including collection of rents and maintenance contributions and the maintenance and refurbishment requirements, is through the appointment of professional Trust Estate Managers. Appointments are usually for three-year periods and the Foundation’s beneficiaries are usually consulted before any renewal or new appointment is made. 

## Related Parties 

Whilst the Foundation has important working relationships with other charities in the Armed Forces and Mercantile Marine sectors and may receive from them grants for specific purposes from time to time, neither they nor any other agencies are deemed to be related parties. 

## Risk Management 

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance that identified risks, including fraud and error, are mitigated. 

The identification of risks is a duty not only of the Board but also of the Foundation’s professional appointees, particularly those whose responsibilities involve detailed or specialist knowledge of processes and procedures which the Foundation currently experiences or may experience in the broad context of its objectives. The Board also encourages its beneficiaries to consider the risks apparent from their living environment and to report if there is concern. 

4 



**The E. Hayes Dashwood Foundation** 

**TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

The Board maintains and keeps under review at least annually a risk exposure framework covering all likely classifications of risk. It details the Board’s views on how various levels of risk become acceptable after the strategic management of them and the review process is to ensure that the assessments made continue to reflect the Board’s view of an acceptable risk. The Board also recognises its duty to ensure that, as part of the management process, new risks are properly reported and evaluated and that the risk aspects of significant new projects are considered as part of every project appraisal. Any failure of control systems is reported to the Board for action. 

The Board believes that its periodic reviews of financial management, its quarterly reviews with estate managers and its property condition inspection processes combine with appropriate insurance cover to mitigate the risks it has identified to acceptable levels. 

## **OBJECTIVES AND ACTIVITIES** 

The object of the charity is to provide, maintain and regulate self-contained, unfurnished almshouse accommodation for its beneficiary class of infirm ex-Service people or those of the mercantile marine, together with their families. 

The activities of the charity all relate directly to the object and are, generally, to contribute to the quality of life of the beneficiaries, their spouses and families by means of a good standard of almshouse provision at a cost to the beneficiary which is as low as reasonably possible and capable of being met by Housing Benefit and/or other housing allowances for those who would otherwise experience hardship. 

All the Foundation’s properties are situated in two predominantly residential roads lying within a conservation area in Balham, London, SW12. The properties consist of 150 flats, each having one, two or three bedrooms and a shared small garden. The Board currently designates 100 of these flats as almshouses for occupation at reduced cost by the beneficiaries. The balance of 50 flats not occupied by the beneficiaries is applied to residential letting either at market rates or rates appropriate to legal constraints at the time of letting for the purpose of providing income. The Foundation has, additionally, a further 25 flats which have been let on long leases and premiums on the extension of these leases constitute an occasional source of income to the Foundation. 

Looking to the longer term, the Governing Document provides that the property endowed should be regarded as permanent until such time as there are no longer objects of the deed to be fulfilled. 

However, the Board considers that the objects of the trust deed will continue to be very relevant for many years to come and its plans for maintenance and improvement of the endowed housing stock will continue to be on the basis of good quality materials and workmanship to enhance longevity. 

## PUBLIC BENEFIT 

## **Reporting Requirement** 

During the year the Board has considered the guidance from the Charity Commission and Section 17 of the Charities Act 2011 in connection with the duty to meet and report on the public benefit in exercising their powers or duties and has had regard to that guidance in preparing this report. 

5 



**The E. Hayes Dashwood Foundation** 

**TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **Type & Scope of Public Benefit** 

The benefits of the Foundation’s work relate directly to its object, which is detailed on page 4 of this report. 

Rent is not charged for occupation by beneficiaries as they become licensees upon disposition of an almshouse property under the Charities Act 2011. A Maintenance Contribution applies, however, and its payment is a condition of the licence to occupy. The level of Maintenance Contribution is reviewed annually by the Board informed by the guidelines of the National Association of Almshouses. 

With the support of income from, primarily, residential letting and grants from other ex- Service charities it is possible for the level of Maintenance Contribution to be set substantially below the maintenance costs actually incurred. Maintenance Contributions represent a considerable measure of financial relief for the beneficiaries when compared to market rate rents. 

The Foundation may assist its beneficiaries in application for Housing Benefit and/or other housing allowances in circumstances of hardship and may liaise with the local authority and relevant charities should special needs arise which a beneficiary is unable to meet unaided. 

## **Opportunity for Beneficiaries** 

Demand for low-cost accommodation in the London area is invariably high but new appointments are, by the financial limits of the Foundation, restricted to filling vacancies occurring through the loss of an existing beneficiary. Application for appointment as a beneficiary is open nationally to any former member of the armed forces and Mercantile Seafaring veterans. In all categories, the applicant must be suffering an infirmity. It may be either a physical (including sensory) or mental impairment and it does not need to have arisen during or from military or maritime service. There are no costs associated with application; travel expenses for interview in London are met if necessary and no deposit is taken when an applicant is appointed to a property. 

## **Balance of Benefit against Detriment** 

Beneficiaries will have widely differing ages, types & degrees of infirmity and social, financial and personal circumstances. However, the level of behaviour to the detriment of others in the locality is believed only to reflect that which can be expected on any small estate occupied by a diverse community. The Foundation’s policies for dealing with all ranges of antisocial behaviour are notified in writing to all beneficiaries upon their appointment and again should an issue arise. 

## **Trustees & Governors** 

All Trustees of the Foundation give their time voluntarily and neither they, nor parties related to them, receive benefits from the Charity. Vouched expenses of Trustees incurred exclusively in the course of their duties may, however, be reimbursed (See note 8 attaching to the Accounts). 

6 



**The E. Hayes Dashwood Foundation** 

**TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **ACHIEVEMENT AND PERFORMANCE** 

During the year under review the Board has: 

- maintained its aim in the selection and interview of needy applicants to become beneficiaries, as vacancies arose. 

- met, where possible, the welfare needs of existing beneficiaries by, for example, the provision of need- specific bathrooms or transfers to different types and sizes of property. 

- strengthened its contacts with other charities in the sector and principal government agencies to help seek out the neediest applicants appropriate to this type of housing provision and improve awareness nationally of the Foundation’s purposes as an almshouse charity. 

- maintained a high occupancy rate in respect of all properties available for letting on Assured Shorthold Tenancies in a market where there has been a most satisfactory demand for good quality property. 

- Progressed with undertaking charity incorporation together with moving the Foundation bank accounts from Barclays plc to the Charities Aid Foundation (CAF) bank. 

## **PLANS FOR THE YEAR AHEAD** 

The Board intends to: 

- ❖ continue to liaise closely with local authority social services, housing and welfare departments particularly in the light of far-reaching changes to the structure of welfare benefits which can impact substantially on the Foundation’s beneficiaries. 

- ❖ continue its commitment to bringing all its properties up to a very good standard internally & externally and to continue with the works recommended in the recent property inspections within the constraint of available funds. 

- ❖ continue with the project to install replacement timber framed, energy efficient and secure windows in all properties. 

- ❖ continue the practice of only allocating property to a new resident that is in a good overall condition and has undergone kitchen and bathroom updating if necessary as well as deep cleaning and re-decoration. 

- ❖ The Board will monitor closely the impact of the Covid19 pandemic on the income and cashflow as well as the implications of sharply rising inflation. Indications are that income will hold up if the rental properties remain occupied. 

- ❖ The Board will also monitor carefully the effect of the virus on the wellbeing of the beneficiaries of the Foundation. 

## **GOING CONCERN** 

As detailed in the financial commentary in the trustee’s annual report the Trustees, having reviewed the charity’s activities and financial position consider the going concern basis of accounting to be appropriate. Their judgement was made in the light of the foundation’s transition to Charitable Incorporated Organisation as stated in Chairman’s report. 

7 



**The E. Hayes Dashwood Foundation** 

**TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **FINANCIAL REVIEW** 

**Details of the current year’s results appear in the accounts from page 13 onwards** 

The year income was £1,479k (2020: £1,432k) and expenditure £762k (2020: £779k) resulted a surplus of £717k (2020: £653K). The accounting for the property was change and new method adopted that made prior year adjustment to the account. At the end of the year total fund balance was £54,648k comprised of unrestricted fund deficit balance £344k and Endowment fund balance £54,992k. 

## **Reserves level and policy** 

The Foundation’s endowment property provides a steady flow of income which has proved reliable and which covers all its general commitments including scheduled loan repayments and day to day running repair of its properties. There is also an important element provided to permit a full programme of the repairs and improvements highlighted by the quinquennial inspection report currently being used for reference. 

The Board is not aware of any future needs, opportunities, commitment or risks where future income alone is unlikely to be able to meet anticipated costs. Therefore, those needs which justify having reserves are principally to meet an unexpected and substantial fall in the flow of income. Such a fall would almost certainly be attributable to a change in housing conditions on a national scale and thus be beyond the control of the Board. 

The Board believes it to be correct to maintain the bank overdraft facility of £200,000, first arranged in 2013, and that this sum will continue to provide a sufficient initial cushion to meet pre-existing commitments to contractors during which time measures in mitigation of an income fall can be investigated and organised. Such measures could include a re-gearing of the rate of the property refurbishment and general enhancement measures for the estate. 

At the year end, the unrestricted general funds reserves deficit are in the amount of £344k (2020: deficit £392k). 

8 



**The E. Hayes Dashwood Foundation TRUSTEES’ REPORT for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **STATEMENT OF TRUSTEES RESPONSIBILITIES** 

The Board of the Hayes Dashwood Foundation is responsible for preparing Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. 

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to: 

- ❖ select suitable accounting policies and then apply them consistently; 

- ❖ observe the methods and principles of the charity SORP; 

- ❖ make judgements and estimates that are reasonable and prudent; 

- ❖ state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- ❖ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Board as the Trustee body is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Board as a Trustee body is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The report was approved by the Board 31 October 2022 and signed on behalf of the board by; 

Vice-Admiral Sir Tom Blackburn KCVO CB (Chairman) 

9 



**The E. Hayes Dashwood Foundation** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **Opinion** 

We have audited the financial statements of The E. Hayes Dashwood Foundation (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, 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 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. 

10 



**The E. Hayes Dashwood Foundation INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **Matters on which we are required to report by exception** 

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

- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

## **Our responsibilities for the audit of the financial statements** 

We have been appointed as auditors 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 reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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: 

- The charity is required to comply with charity law and based on our knowledge of its activities, we identified that the legal requirement to accurately account for endowment and restricted funds was of key significance. 

- We gained an understanding of how the charity complied with its legal and regulatory framework, including the requirement to properly account for endowment and restricted funds, through discussions with management and a review of the documented policies, procedures, and 

- Our approach was to check that all endowment and restricted income and assets were properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds and assets subject to endowments were classified correctly. 

- We also obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011. 

- We understood how the charity is complying with those frameworks via communication with those charged with governance, together with the review of the charity’s documented policies and procedures. 

- We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements. 

11 



**The E. Hayes Dashwood Foundation** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES for the year ended 31 December 2021** 

____________________________________________________________________________ 

These included risks associated with revenue recognition, application of accounting estimates and management override of controls, which were discussed and agreed by the audit team. 

- Our approach included agreeing the recognition of income to the terms of tenancy agreements and beneficiary appointments, reviewing the assumptions used and controls applied in the calculation of accounting estimates, the review of journal entries processed in the accounting records and the investigation of significant and unusual transactions identified from our review of the accounting records. 

- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the reporting to the board members with respect to the application of the documented policies and procedures and review of the financial statements to ensure compliance with the reporting requirements of the charity. 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. 

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 Report of the Independent Auditors. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Knox Cropper LLP Office Suite 1, Haslemere House, Lower Street, Haslemere Surrey GU27 2PE __________________________ 2022. 

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

12 



**The E. Hayes Dashwood Foundation** 

## **STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2021** 

____________________________________________________________________________ 

|**Note**<br>**Income and Endowments**<br>Donations and legacies<br>2<br>Charitable activities<br>3<br>Investment income<br>4<br>**Total income**<br>**Expenditure**<br>Cost of Raising Funds<br>5<br>Charitable activities<br>6<br>**Total expenditure**<br>Gains/(losses) on investment property<br>11<br>**Net income/(expenditure)**<br>Gains/(losses) on revaluation of tangible<br>fixed assets<br>10<br>Transfers between funds<br>16<br>**Net movement in**<br>**funds**<br>**Funds brought forward 1 January**<br>As originally reported<br>Prior year adjustment<br>20<br>As restated<br>**Total funds carried forward 31 December**<br>15|**2021**|**2020**<br>**Restated**<br> <br>**Total Funds**<br>**Total Funds**<br>**£**<br>**£**<br> <br>-<br>13,840<br> <br>494,128<br>335,848<br> <br>985,277<br>1,083,076|
|---|---|---|
||**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**£**<br>**£**<br>-<br>-<br>494,128<br>-<br>985,277<br>-||
||**1,479,405**<br>**-**<br>295,727<br>-<br>466,685<br>-|**1,479,405**<br>**1,432,764**<br> <br>295,727<br>414,761<br> <br>466,685<br>364,153|
||**762,412**<br>**-**<br>-<br>160,145|**762,412**<br>**778,914**<br> <br>160,145<br>1,571,358|
||**716,993**<br>**160,145**|**877,138**<br>**2,225,208**|
||-<br>153,028<br>(668,827)<br>668,827|<br>153,028<br>5,384,716<br> <br>-<br>-|
||**48,166**<br>**982,000**|**1,030,166**<br>**7,609,924**|
||7,018,779 46,082,462<br>(7,410,721)<br>7,927,838|<br>53,101,241<br>46,008,434<br> <br>517,117<br>-|
||(391,942) 54,010,300|<br>53,618,358<br>46,008,434|
||**(343,776)** **54,992,300**|**54,648,524**<br>**53,618,358**|



13 



**The E. Hayes Dashwood Foundation** 

## **BALANCE SHEET as at 31 December 2021** 

|**BALANCE SHEET**<br>**as at 31 December 2021**|||||
|---|---|---|---|---|
|_________________________________<br>**Notes**<br>**FIXED ASSETS**<br>Tangible fixed assets<br>10<br>Housing properties<br>Other fixed assets<br>Investment properties<br>11<br>**CURRENT ASSETS**<br>Debtors<br>12<br>Cash at bank and in hand<br>**CREDITORS**: amount falling due<br>within one year<br>13<br>**NET CURRENT (LIABILITIES)**<br>**/ASSETS**<br>**CREDITORS**: amount falling due<br>after more than one year<br>14<br>**NET ASSETS**<br>**CHARITY FUNDS**<br>15<br>Endowment funds<br>Unrestricted funds|______________________<br>**2021**<br>**£**<br>**£**<br>23,768,900<br>280,212<br>30,944,400<br>**54,993,512**<br> <br>76,733<br>34<br>76,767<br>(241,633)<br> <br>(164,866)<br>(180,122)<br>**54,648,524**<br>54,992,300<br>(343,776)<br>**54,648,524**||___________<br>£<br> <br> <br> <br> <br>70,788<br>1,920|__________<br>**2020**<br>**Restated**<br> <br>£<br>23,210,600<br>279,000<br>30,520,700|
|||**54,993,512**<br> <br> <br> <br> <br> <br> <br>(164,866)<br>(180,122)||**54,010,300**<br> <br> <br> <br> <br>(193,265)<br>(198,677)|
||76,767<br>(241,633)||72,708<br>(265,973)||
||||<br> <br> <br> <br>||
|||**54,648,524**||**53,618,358**|
|||54,992,300<br>(343,776)||54,010,300<br>(391,942)|
|||**54,648,524**||**53,618,358**|



The trustees acknowledge their responsibility for complying with the requirement of the act with respect of accounting records and preparation of financial statements. 

The financial statements were approved by the Board of Trustees on 31 October 2022 and were signed on its behalf by: 

Vice-Admiral Sir Tom Blackburn KCVO CB                        Commodore Annette Picton RN 

The notes form an integral part of these financial statements 

14 



## **The E. Hayes Dashwood Foundation STATEMENT OF CASH FLOWS for the year ended 31 December 2021** 

____________________________________________________________________________ 

|**Notes**<br>**Cash flow from operating activities**<br>**Net cash provided by operating activities**<br>**A**<br>**Cash flow from investing activities**<br>Rents received<br>Interest received<br>Capitalised works to existing properties<br>Purchase of fixed assets<br>**Net cash provided by investing activities**<br>**Cash flows from financing activities**<br>Repayments of borrowings<br>Interest paid<br>**Net cash provided by investing activities**<br>**Change in cash and cash equivalents in the year**<br>**Cash and cash equivalents at the beginning of the year**<br>**Cash and cash equivalents at the end of the year**<br>**B**<br>**Notes to the cash flow statement**<br>**A – Reconciliation of Net Income to net cash flow from**<br>**operating activities**<br>Net income/(expenditure)<br>Depreciation charge<br>Investment Income<br>Interest payable<br>(Gain)/losses on revaluation of investment properties<br>Decrease/(increase) in debtors<br>(Decrease)/increase in creditors<br>**Net cash provided by operating activities**|**2021** **2020 Restated**<br>**£**<br>**£**<br>**(230,813)**<br>**(470,653)**|
|---|---|
||985,101<br>1,083,076<br>176<br>-<br>(668,827)<br>(568,775)<br>(1,364)<br>-|
||**315,086**<br>**514,301**|
||(44,851)<br>(62,830)<br>(10,687)<br>(11,793)|
||**(55,538)**<br>**(74,173)**|
||**28,735**<br>**(30,525)**<br>(89,657)<br>(59,132)|
||<br>**(60,922)**<br>**(89,657)**|
||**2021** **2020 Restated**<br>£<br>£<br>877,138<br>2,225,208<br>152<br>-<br>(985,277)<br>(1,083,076)<br>10,687<br>11,793<br>(160,145)<br>(1,571,358)<br>(5,945)<br>(23,322)<br>32,577<br>(29,898)|
||**(230,813)**<br>**(470,653)**|



15 



## **The E. Hayes Dashwood Foundation STATEMENT OF CASH FLOWS for the year ended 31 December 2021** 

____________________________________________________________________________ 

## **B – Analysis of cash and cash equivalents** 

|||
|---|---|
|**B – Analysis of cash and cash equivalents**<br>Cash at Bank<br>Bank Overdraft<br>**Total cash and cash equivalents**|**2021**<br>2020<br>**£**<br>£<br>34<br>1,920<br>(60,956)<br>(91,577)|
||**(60,922)**<br>**(89,657)**|



## **C – Analysis of changes in net debt** 

|Cash<br>Bank overdraft<br>Loans falling due within<br>one year<br>Loans falling due after<br>more than one year|**At 01/01/2021**<br>**£**<br>1,920<br>(91,577)<br>(71,162)<br>(198,677)<br>(359,496)|**Cash Flows**<br>**£**<br>(1,886)<br>30,621<br>26,296<br>18,555<br>73,586|**Other**<br>**non-cash**<br>**changes**<br>**£**<br>-<br>-<br>-<br>-<br>-|**At 31/12/2021**<br>**£**<br>34<br>(60,956)<br>(44,866)<br>(180,122)|
|---|---|---|---|---|
|||||(285,910)|



16 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **1) Accounting Policies** 

## **General Information** 

The E Hayes Dashwood Foundation (“the Foundation”) is a Charitable Incorporated Organisation which is domiciled in the UK and registered with the Charity Commission for England and Wales. The registered office is as disclosed on page 1. 

## **Basis of preparing the financial statements** 

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. They have been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) Second Edition issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The presentation currency of the financial statements is the Pound Sterling (£). The Foundation constitutes a public benefit entity as defined by FRS 102. 

The accounts have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) Second Edition issued in October 2019 rather than the Accounting and Reporting by Charities Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

## **Merger** 

The E Hayes Dashwood of Aston Rowant House, Oxfordshire Foundation (Charity No 246460) was merged with The E. Hayes Dashwood Foundation, a Charitable Incorporated Organisation – Charity No 1189334 on 20th October 2021. All existing assets and liabilities were transferred to the new Charitable Incorporated Organisation. This charity reconstruction has been treated as a merger in accordance with section 27 of the Charities SORP. 

## **Going concern** 

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. The trustees of the Foundation have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern. 

Notwithstanding the net current liabilities position at the balance sheet date, the trustees are of the opinion that the Foundation will have sufficient resources to meet its liabilities as they fall due. This is because the charity is receiving regular income from its properties and has sufficient headroom in existing overdraft and loan facilities to accommodate fluctuations in spending. In addition, the Foundation has property available to pledge as security additional borrowings were this required. 

## **Incoming Resources** 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

## _Rents and Maintenance Charges_ 

Rent and maintenance charges receivable for the occupation of the Foundation's freehold property are accounted for in the period in which the properties were occupied and are net of voids. Weekly maintenance contributions receivable from appointed beneficiaries of the Foundation are accounted for as income from charitable activities, while rent receivable under assured shorthold tenancies from persons not appointed as beneficiaries of the Foundation is accounted for as income from investment properties. 

17 



**The E. Hayes Dashwood Foundation** 

## **NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## _Investment and Other Income_ 

Investment and other sundry income is accounted for when received or legal entitlement arises. 

## _Donations Receivable_ 

Donations receivable are accounted for when received or legal entitlement arises. Donations for purposes restricted by the wishes of the donor(s) are treated as Restricted Funds. 

## **Resources Expended** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. 

## _Costs of Raising Funds_ 

Cost of Raising Funds comprises all direct costs incurred in the management and maintenance of properties which are for the time being categorised as investment properties and an apportionment of support costs. 

## _Costs of Charitable Activities_ 

Cost of Charitable Activities comprises all direct costs incurred in the management and maintenance of properties which are for the time being categorised as tangible fixed assets, being used for the accommodation of beneficiaries of the charity, and an apportionment of support costs. 

## Support Costs 

Support costs represent indirect expenditure incurred in the administration of the Foundation. Governance costs comprise the costs involving the public accountability of the Foundation (including audit costs) and costs in respect to its compliance with regulation and good practice. Support costs and governance costs are allocated between the Foundation's activities by reference to direct costs incurred and staff time spent on each activity. 

## **Tangible fixed assets** 

## _Housing properties_ 

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and are stated at valuation. Housing properties are stated at fair value at the date of valuation, less accumulated impairment losses. No depreciation has been charged as the residual value of the properties at open market rates is considered to exceed the valuation in their current use for beneficiaries of the Foundation. Revaluations are made with sufficient regularity to ensure that the carrying amount does not materially differ from the fair value of the properties as at the year end. 

## _Office property and freehold land_ 

Office property and Land is initially recognised at cost and subsequently measured using the revaluation model at valuation at each balance sheet date. 

## _Office equipment_ 

Office equipment is measured at cost less depreciation. Depreciation is charged to write off the cost over three years on a straight-line basis. 

## **Investment properties** 

Investment properties are stated at market value at the balance sheet date.  Gains are calculated based on the movement in the market value during the period. 

## **Debtors** 

Trade and other receivables are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 

18 



**The E. Hayes Dashwood Foundation** 

## **NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **Creditors:** 

Creditors are measured at the expected settlement amount, discounted for the time value of money if material. 

## **Cash at bank and in hand** 

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. 

## **Financial Instruments** 

The Foundation has financial assets and financial liabilities of a kind that qualify as basic financial instruments.  Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. 

Financial assets held at cost comprise cash at bank and in hand, together with trade and other receivables (excluding prepayments). Financial liabilities held at cost comprise of bank loans and overdrafts, trade and other creditors. 

## **Fund accounting:** 

## _Unrestricted funds_ 

These funds are available at any time for the use at the discretion of Trustees for the furtherance of the Foundation’s activities and objectives. 

## _Endowment funds_ 

These funds have been established from an endowment the Foundation received many years ago and represents the Foundation’s freehold land and buildings. 

## _Restricted funds_ 

Donations or legacies received which are earmarked by the donor for specific purposes.  Such purposes are within the overall aims of the Foundation. 

## **Taxation** 

The charity is exempt from tax on its charitable activities. Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 

## **Critical accounting estimates and areas of judgement** 

The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the Foundation’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: 

## _Valuation of tangible fixed assets and investment properties_ 

Management reviews its valuation of housing properties at each reporting date, based on either formal valuation reports or an update to those reports based on market conditions and other changes to assumptions. Uncertainties in these estimates relate to the discount rate, the cost of property maintenance and future cash flows. Valued properties totalled £54,992,300 at the year-end. 

In view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

19 



**The E. Hayes Dashwood Foundation** 

## **NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**2** **Donations and Legacies**<br>Grants received<br>- Queen Mary's Roehampton Trust<br>- Trinity House<br>2020 analysis<br>**3** **Income from Charitable Activities**<br>Maintenance charges receivable<br>2020 analysis<br>**4 Income from Investments**<br>Rents receivable<br>Interest receivable<br>2020 analysis|**Unrestricted**<br>**Restricted**<br>**2021 Total**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>-<br>10,000<br>-<br>-<br>-<br>3,840|
|---|---|
||-<br>-<br>-<br>13,840|
||-<br>13,840<br>13,840<br>**Unrestricted**<br>**Restricted**<br>**2021 Total**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>494,128<br>-<br>494,128<br>335,848|
||494,128<br>-<br>494,128<br>335,848|
||335,848<br>-<br>335,848<br>**Unrestricted**<br>**Restricted**<br>**2021 Total**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>985,101<br>-<br>985,101 1,083,076<br>176<br>-<br>176<br>-|
||**985,277**<br>**-**<br>**985,277** **1,083,076**|
||1,083,076<br>1,083,076|



20 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **5 Cost of Raising Funds** 

|**Cost of Raising Funds**||
|---|---|
|_Investment properties_<br>Repairs and maintenance<br>Property management<br>Insurance<br>Legal and professional<br>Other<br>Support costs (note 7)<br>2020 analysis|**Unrestricted**<br>**Restricted**<br>**2021 Total**<br>**2020**<br>**Restated**<br>**£**<br>**£**<br>**£**<br>**£**<br>134,238<br>-<br>134,238<br>261,969<br>94,226<br>-<br>94,226<br>61,756<br>7,416<br>-<br>7,416<br>7,861<br>6,245<br>-<br>6,245<br>36,289<br>17<br>-<br>17<br>(173)<br>53,585<br>-<br>53,585<br>47,059|
||**295,727**<br>**-**<br>**295,727**<br>**414,761**|
||414,761<br>414,761|



## 6 **Expenditure on Charitable Activities** 

|**Expenditure on Charitable Activities**||
|---|---|
|_Housing accommodation_<br>Utilities<br>Repairs and maintenance<br>Property management<br>Insurance<br>Legal and professional<br>Other<br>Support costs (note 7)<br>2020 analysis|**Unrestricted**<br>**Restricted**<br>**2021 Total**<br>**2020**<br>**Restated**<br>**£**<br>**£**<br>**£**<br>**£**<br>22,216<br>-<br>22,216<br>28,067<br>302,261<br>-<br>302,261<br>205,631<br>47,255<br>-<br>47,255<br>76,600<br>4,120<br>-<br>4,120<br>7,861<br>6,238<br>-<br>6,238<br>3,445<br>32<br>-<br>32<br>1,232<br>84,563<br>-<br>84,563<br>41,317|
||**466,685**<br>**-**<br>**466,685**<br>**364,153**|
||350,313<br>13,840<br>364,153|



21 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**7**<br>**Support Costs**<br>Staff costs<br>Administration<br>Accountancy<br>Depreciation<br>Legal and professional fees<br>Bank charges<br>Loan & overdraft interest<br>_Governance costs:_<br>Auditors' remuneration<br>Trustees' expenses<br>**Support cost allocated to;**<br>Raising funds<br>Charitable activities<br>**8 Trustee Expenses**<br>Trustee Expenses|**2021** **2020 Restated**<br>**£**<br>**£**<br>41,559<br>38,112<br>4,126<br>11,763<br>9,627<br>12,156<br>152<br>-<br>59,999<br>7,747<br>4,227<br>115<br>10,687<br>11,793<br>7,200<br>6,000<br>571<br>690|
|---|---|
||**138,148**<br>**88,376**|
||53,585<br>47,059<br>84,563<br>41,317|
||**138,148**<br>**88,376**|
||**2021**<br>**2020**<br>**£**<br>**£**|
||571<br>690|



Trustees received no remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020. Total 5 (2020: 4) trustees received reimbursement of meeting attendance travelling cost. 

22 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|9**Staff costs**<br>Gross salaries<br>Social security contributions<br>Defined contribution pension costs<br>The average full time equivalent number of employees|**2021**<br>**2020**<br>**£**<br>**£**<br>40,332<br>36,096<br>87<br>940<br>1,140<br>1,076|
|---|---|
||**41,559**<br>**38,112**|
||**2021**<br>**2020**|
||1<br>1|



No employee received emoluments in excess of £60,000 (2020: nil). Key Management Personnel is defined as the trustees and the Foundation Director. Total remuneration amounted to £41,559 (2020: £38,112). 

23 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **10 Tangible Fixed Assets - restated** 

|**Tangible Fixed Assets - restated**|||
|---|---|---|
|**Cost or Valuation**<br>At 1 January 2021 (as restated)<br>Additions<br>Works to existing properties<br>Disposals<br>Revaluation<br>Transfer from investment<br>properties<br>Transfer to investment<br>properties<br>At 31 December 2021<br>**Depreciation**<br>At 1 January 2021<br>Charge for the year<br>Revaluation<br>At 31 December 2021<br>**Net Book Value**<br>**At 31 December 2021**<br>At 31 December 2020|**Other Fixed Assets**<br>**Housing**<br>**Properties**<br>**Office**<br>**Property**<br>**Land**<br>**Office**<br>**Equipment Sub-total**<br>**Total**<br>£<br>£<br>£<br>£<br>£<br>**£**<br>23,210,600 186,000<br>93,000<br>-<br>279,000<br>**23,489,600**<br>-<br>-<br>-<br>1,364<br>1,364<br>**1,364**<br>267,664<br>-<br>-<br>-<br>-<br>**267,664**<br>-<br>-<br>-<br>-<br>-<br>**-**<br>153,028<br>-<br>-<br>-<br>-<br>**153,028**<br>4,293,508<br>-<br>-<br>-<br>-<br>**4,293,508**<br>(4,155,900)<br>-<br>-<br>-<br>-<br>**(4,155,900)**||
||23,768,900 186,000<br>93,000|<br>1,364<br>280,364<br>**24,049,264**|
||-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|<br>-<br>-<br>-<br> <br>152<br>152<br>152<br> <br>-<br>-<br>-|
||-<br>-<br>-|<br>152<br>152<br>152|
||**23,768,900** **186,000**<br>**93,000**|**1,212**<br>**280,212**<br>**24,049,112**|
||23,210,600 186,000<br>93,000|<br>-<br>279,000<br>23,489,600|



24 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**11** **Investment Properties**<br>**Valuation**<br>At 1 January 2021 (as restated)<br>Works to existing properties<br>Disposals<br>Revaluation<br>Transfer from tangible fixed assets<br>Transfer to tangible fixed assets<br>**At 31 December 2021**<br>**12 Debtors**<br>Rent and Maintenance charges in arrears<br>Funds held by managing agent<br>Prepayments and accrued income<br>Other debtors<br>**13 Creditors falling due within one year**<br>Bank loan (see note 14)<br>Bank overdraft<br>Trade creditors<br>Rent and Maintenance charges in advance<br>Accrued expenses<br>Other creditors|**Freehold**<br>**Reversions**<br>**£**<br>157,700<br>-<br>-<br>7,200<br>-<br>-|**Housing**<br>**Properties**<br>**Total**<br>**£**<br>**£**<br>30,363,000<br>30,520,700<br>401,163<br>401,163<br>-<br>-<br>152,945<br>160,145<br>4,155,900<br>4,155,900<br>(4,293,508)<br>(4,293,508)|
|---|---|---|
||**164,900**|**30,779,500**<br>**30,944,400**|
|||**2021**<br>**2020**<br>**£**<br>**£**<br>31,741<br>29,955<br>24,442<br>40,833<br>4,079<br>-<br>16,471<br>-|
|||**76,733**<br>**70,788**|
|||**2021**<br>**2020**<br>**£**<br>**£**<br>44,866<br>71,162<br>60,956<br>91,577<br>62,709<br>25,864<br>43,158<br>69,252<br>27,621<br>7,256<br>2,323<br>862|
|||**241,633**<br>**265,973**|



25 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**14 Creditors falling due after more than one year.**<br>Bank loan (see note 15)<br>**15 Loans**<br>An analysis of the maturity of loans is given below:<br>Amount falling due within one year on demand:<br>Bank Loan<br>Year - 1<br>Amount falling due between one and two years:<br>Bank Loan: 1-2 Years<br>Year - 2<br>Amount falling due between two and five years:<br>Bank Loan: 2-5 Years<br>Year 3, 4, 5<br>Repayable by installment:<br>Bank loan more than 5 years by instalment<br>All loans||**2021**<br>**2020**<br>**£**<br>**£**<br>180,122<br>198,677|
|---|---|---|
|||**180,122**<br>**198,677**|
|||**2021**<br>**2020**<br>**£**<br>**£**<br> <br>44,866<br>71,162<br> <br>44,866<br>71,162<br> <br>135,256<br>127,515<br>-<br>-|
|||**224,988**<br>**269,839**|



The prior year loan was repaid in full during the year and a new loan facility agreed. The total facility is £300,000 which has not been fully drawn down and is repaid by equal monthly instalments of capital. The facility is secured on two of the Foundation’s investment properties with a carrying value of £1,192,800 at the balance sheet date. Interest is charged at 2.80% over the Bank of England base rate. 

26 



## **The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**16 Movement in Funds**<br>Unrestricted funds<br>Endowment funds<br>Restricted funds<br>**Prior year analysis**<br>**(2020)**<br>Unrestricted Fund<br>Endowment funds<br>Restricted funds|**- restated**<br>**Opening**<br>**balance**<br>**Income**<br>**Expenditure**<br>**Transfer**<br>**between**<br>**funds**<br>**Gains on**<br>**revaluation**<br>**Closing**<br>**balance**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>(391,942)<br>1,479,405<br>(762,412)<br>(668,827)<br>-<br>(343,776)<br>54,010,300<br>-<br>-<br>668,827<br>313,173<br>54,992,300<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**53,618,358**<br>**1,479,405**<br>**(762,412)**<br>**-**<br>**313,173**<br>**54,648,524**|
||**Opening**<br>**balance**<br>**Income**<br>**Expenditure**<br>**Transfer**<br>**between**<br>**funds**<br>**Gains on**<br>**revaluation**<br>**Closing**<br>**balance**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>(477,017)<br>1,418,924<br>(765,074)<br>(568,775)<br>-<br>**(391,942)**<br>46,485,451<br>-<br>-<br>568,775<br>6,956,074<br>**54,010,300**<br>-<br>13,840<br>(13,840)<br>-<br>-<br>**-**|
||**46,008,434**<br>**1,432,764**<br>**(778,914)**<br>**-**<br>**6,956,074**<br>**53,618,358**|



Endowment funds comprise the properties transferred to the Foundation on its establishment. 

Transfers from unrestricted funds to endowment funds represent funds spent on capitalised improvements to the endowed property. 

27 



**The E. Hayes Dashwood Foundation** 

## **NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

|**17** **Analysis of Net Assets by Fund**<br>**At 31 December 2021**<br>Fixed assets<br>Current assets<br>Creditors less than one year<br>Creditors more than one year<br>Net assets<br>**At 31 December 2020**<br>Fixed assets<br>Current assets<br>Creditors less than one year<br>Creditors more than one year<br>Net assets|**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**2021 Total**<br>**£**<br>**£**<br>**£**<br>1,212<br>54,992,300<br>54,993,512<br>76,767<br>-<br>76,767<br>(241,633)<br>-<br>(241,633)<br>(180,122)<br>(180,122)|
|---|---|
||**(343,776)**<br>**54,992,300**<br>**54,648,524**|
||**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**2020 Total**<br>**Restated**<br>**£**<br>**£**<br>**£**<br>-<br>54,010,300<br>54,010,300<br>72,708<br>-<br>72,708<br>(265,973)<br>-<br>(265,973)<br>(198,677)<br>(198,677)|
||**(391,942)**<br>**54,010,300**<br>**53,618,358**|



28 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **18 Comparative Statement of Financial Activities** 

|**Income and Endowments**<br>Donations and legacies<br>Charitable activities<br>Investment income<br>**Total income**<br>**Expenditure**<br>Cost of Raising Funds<br>Charitable activities<br>**Total expenditure**<br>Gains/(losses) on investment property<br>**Net income/(expenditure)**<br>Gains/(losses) on revaluation of tangible<br>fixed assets<br>Transfers between funds<br>**Net movement in**<br>**funds**<br>**Funds brought forward 1 January**<br>As originally reported<br>Prior year adjustment<br>As restated<br>**Total funds carried forward 31 December**|**Unrestricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**£**<br>**£**<br>-<br>-<br>335,848<br>-<br>1,083,076<br>-|<br>**Restricted**<br>**Funds**<br>**2020 Total**<br>**Funds**<br>**£**<br>**£**<br> <br>13,840<br>13,840<br> <br>-<br>335,848<br> <br>-<br>1,083,076|
|---|---|---|
||**1,418,924**<br>**-**<br>414,761<br>-<br>350,313<br>-|**13,840**<br>**1,432,764**<br> <br>-<br>414,761<br> <br>13,840<br>364,153|
||**765,074**<br>**-**<br>-<br>1,571,358|**13,840**<br>**778,914**<br> <br>-<br>1,571,358|
||**653,850**<br>**1,571,358**|**-**<br>**2,225,208**|
||-<br>5,384,716<br>(568,775)<br>568,775|<br>-<br>5,384,716<br> <br>-<br>-|
||**85,075**<br>**7,524,849**|**-**<br>**7,609,924**|
||(74,028) 46,082,462<br>(402,989)<br>402,989|<br>-<br>46,008,434<br> <br>-<br>-|
||(477,017) 46,485,451|<br>-<br>46,008,434|
||**(391,942)** **54,010,300**|**-**<br>**53,618,358**|



29 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **19 Conversion to Charitable Incorporated Organisation** 

During the year, the Trustees received clearance from the Charity Commission to convert the Unincorporated Charity into a Charitable Incorporated Organisation. 

All Assets and Liabilities were transferred to the new organisation on 20 October 2021. The Transfer was treated at Merger Accounting as set out in the Statement of Recommended Practice which requires the accounts to be presented as though they had always been the same reporting charity. 

_Analysis of principal SoFA components for the current reporting period_ 

|Total Income<br>Total Expenditure<br>Gains<br>on<br>investment<br>properties<br>Net Income<br>Gain on revaluation of<br>tangible fixed assets<br>Net Movement in Funds|**Unincorporated**<br>**Charity pre-merger**<br>**CIO**<br>**Pre-merger**<br>**CIO**<br>**post-merger**<br>**Combined**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>1,157,572<br>-<br>321,833<br>1,479,405<br>(581,802)<br>-<br>(180,610)<br>(762,412)<br>-<br>-<br>160,145<br>160,145|
|---|---|
||575,770<br>-<br>301,368<br>877,138<br>-<br>-<br>153,028<br>153,028|
||575,770<br>-<br>454,396<br>1,030,166|



_Analysis of principal SoFA components for the previous reporting period_ 

|Total Income<br>Total Expenditure<br>Gains on Investments<br>Net Income<br>Gain on revaluation of tangible<br>fixed assets<br>Net Movement in Funds<br>Total funds brought forward<br>Total funds carried forward|**Unincorporated**<br>**Charity Total**<br>**CIO**<br>**Total**<br>**Combined**<br>**Total**<br>£<br>£<br>£<br>1,432,764<br>-<br>1,432,764<br>(778,914)<br>-<br>(778,914)<br>1,571,358<br>-<br>1,571,358|
|---|---|
||2,225,208<br>-<br>2,225,208<br>5,384,716<br>-<br>5,384,716<br>7,609,924<br>-<br>7,609,924<br>46,004,434<br>-<br>46,004,434|
||53,618,358<br>-<br>53,618,358|



_Analysis of net assets of the date of merger_ 

|Net Assets<br>Represented by:<br>Unrestricted funds<br>Endowment funds<br>Total funds carried forward|**Unincorporated**<br>**Charity pre-merger**<br>**CIO**<br>**Pre-merger**<br>**Combined**<br>**Total**<br>£<br>£<br>£<br>54,194,128<br>-<br>54,194,128<br>(268,692)<br>-<br>(268,692)<br>54,462,820<br>-<br>54,462,820|
|---|---|
||54,194,128<br> -<br>54,194,128|



30 



**The E. Hayes Dashwood Foundation NOTES TO THE FINANCIAL STATEMENTS as at 31 December 2021** 

____________________________________________________________________________ 

## **20 Prior Year Adjustment** 

During the year it was identified that the measurement of the Foundation’s fixed assets at fair value had been misstated in the previous financial statements due to a miscalculation of the year end values. Additionally, the revaluation gain was incorrectly recognised in the Statement of Financial Activities as well as improvements carried out to the properties being treated as revenue expenditure, rather than being added to the carrying amount. 

The fair value as at 31 December 2020 of tangible fixed assets has been increased by £617,100 from £22,872,500 to £23,489,600 and investment properties decreased by £99,983 from £30,620,683 to £30,520,700. The impact on funds was an increase in endowment funds of £517,117 from previously reported. 

Expenditure for the year ended 31 December 2020 decreased by £568,775 from £1,347,689 to £778,914 and gains on revaluation of investment properties increased by £1,571,358 from £Nil to £1,571,358 resulting in an increase to Net Income for the year ended 31 December 2020 of £2,140,133. Gains on revaluation of tangible fixed assets decreased by £1,623,016 from £7,007,732 to £5,384,716, resulting in an increase to the Net Movement in Funds of £517,117. 

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