THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
----- Start of picture text -----
CONTENTS PAGE
----- End of picture text -----
| CONTENTS | PAGE |
|---|---|
| Report of the Executive Committee | 1 and 2 |
| Statement of Executive Committee’s Responsibilities | 3 |
| Independent Examiner’s Report | 4 |
| Income and Expenditure Account | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 – 13 |
| Detailed Hostel Property Revenue Account | 14 |
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE
The Executive Committee submit their report and the financial statements for the year ended 30 September 2022.
The Society is registered under the Companies Act 2006 and the liability of members is limited by guarantee.
The Executive Committee serving during the year or at the date of approval of the financial statements are:
Directors Mrs E A Peacey Miss V J Smith Mr S Howe Mr J Howe Mrs G Pitman (resigned 15 February 2023) Mrs I McDonald Mrs J Smith (appointed 2 August 2022) Method of appointment Committee members are appointed by election at the annual general meeting. One third of members are required to retire each year, but may stand for re-election. The Executive Committee may also co-opt additional committee members between annual general meetings. The Registered Office Abbeyfield House and Principal Office of 6 The Avenue the Society is: Totland Bay Isle of Wight PO39 0DH
Other relevant organisations are as follows:
Independent Examiners A H Cross & Co Limited Chartered Certified Accountants 16 Quay Street Newport Isle of Wight PO30 5BG Bankers National Westminster Bank plc 107 St James' Square Newport Isle of Wight PO30 1UR Solicitors Eldridges Avenue House Avenue Road Freshwater Isle of Wight PO40 9UU
- 1 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
REPORT OF THE EXECUTIVE COMMITTEE (continued)
Principal Activity
The principal activity of the Society continues to be the provision of accommodation, care and companionship for lonely or frail elderly people in accordance with the aims and principles of The Abbeyfield Society Limited. This activity falls wholly within hostel housing activities as defined in the Housing Act 1996.
Status
The Society was registered under the Co-operative and Community Benefit Societies Act 2014. In 2019 the Society re-registered as a limited company under the provisions of the Companies Act 2006, and is registered with the Charity Commission as a charity.
Results
A deficit of £3,224 for the year arises. The detailed hostel property revenue account is presented on page 14.
Fixed Assets
Details of cost and depreciation of fixed assets are set out in notes 8 and 10. The Committee is of the opinion that there is no significant difference between the book cost and the market value for the existing use of the land and buildings.
Recruitment and Appointment of New Trustees
From time to time the Society reviews the skills and abilities of the Trustees to ensure that there is adequate breadth of experience. Should this be lacking or if additional Trustees are required due to retirement, prospective Trustees are invited from the Membership to apply.
Induction and Training of Trustees
All Trustees are provided with the Abbeyfield Executive Guide and Memorandum and Articles of Association. Should additional skills be required external training would be sought.
Organisational Structure
Day to day running of the Society’s affairs are conducted by the Housekeeper, who reports to the Committee. The Trustees meet formally on a quarterly basis and at additional times as required on an informal basis to deal with issues requiring their input.
Major Risks
The Committee confirm that all major risks identified have been assessed and systems implemented to manage those risks.
Achievements, Performance and Financial Review
The Trustees main concerns are to provide a good quality environment for residents to live and employees to work, whilst balancing the financial constraints within budget and to comply with increasing legislation covering all aspects of the Society’s operations.
Reserves
The Committee aims to have reserves of an amount equivalent to one year's residential charges, to cover contingencies including the cost of repairs and improvements to the property.
On behalf of the Executive Committee
………………………………. Director
………………………………. Director ………………………………. Date
- 2 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
STATEMENT OF EXECUTIVE COMMITTEE MEMBERS' RESPONSIBILITIES
Company law requires the Executive Committee members to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Society as at the end of that year and of the surplus or deficit of the Society for that year. In preparing those accounts the Executive Committee members are required to:
-
select suitable accounting policies, and then apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed;
-
state whether applicable statements of recommended practice have been followed; and
-
prepare the accounts on the going concern basis unless it is inappropriate to presume that the Society will continue in business.
The Executive Committee are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Society and which enable them to ensure that the accounts comply with the relevant legislation. They are also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 3 -
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES
ABBEYFIELD WEST WIGHT SOCIETY LIMITED
I report on the accounts of The Abbeyfield West Wight Society Limited for the year ended 30 September 2022, which comprise the Statement of Financial Activities, the Balance Sheet and the related notes.
Respective Responsibilities of Trustees and Examiner
The Charity's Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Trustees consider that the audit requirement of Section 144(2) of the Charities Act 2011 ("the Act") does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Act, whether particular matters have come to my attention.
Basis of Independent Examiner's Report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Trustees and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent Examiner's Statement
In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:
-
accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
-
the accounts do not accord with such records; or
-
the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the Charities SORP (FRS102).
I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
I S Henderson Chartered Accountant A H Cross & Co Limited 16 Quay Street Newport Isle of Wight PO30 5BG
- 4 –
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
| TURNOVER Operating costs OPERATING (DEFICIT)/ SURPLUS Interest receivable and similar income (DEFICIT)/SURPLUS ON ORDINARY ACTIVITIES REVENUE RESERVE BROUGHT FORWARD REVENUE RESERVE CARRIED FORWARD |
Notes 3 4 5 11 £ |
2022 £ 128,036 131,310 (3,274) 50 (3,224) 194,569 191,345 £ |
2021 £ 131,138 126,628 4,510 121 4,631 189,938 194,569 |
|---|---|---|---|
The Society's only activity is the provision of hostel accommodation.
No operations have been discontinued or acquired during the year, and the above amounts relate entirely to continuing operations. All activities relate to unrestricted income funds.
The Society has no recognised gains and losses other than those included in the surplus/ deficit above, and therefore no separate statement of total recognised gains and losses has been presented.
The Committee approved the financial statements on
………………………………. Director
………………………………. Director
- 5 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 SEPTEMBER 2022
| INCOMING RESOURCES Incoming resources from operating activities in furtherance of the Charity's objects Investment income Total incoming resources RESOURCES EXPENDED Charitable expenditure in furtherance of the Charity's objects Resources expended on managing and administering the Charity Total resources expended Net (outgoing)/ incoming resources Total funds brought forward Total funds carried forward £ |
2022 £ 128,036 50 128,086 126,679 4,631 131,310 (3,224) 194,569 191,345 £ |
2021 £ 131,138 121 131,259 122,339 4,289 126,628 4,631 189,938 194,569 |
|---|---|---|
- 6 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED Company number 12304094
BALANCE SHEET
AT 30 SEPTEMBER 2022
----- Start of picture text -----
Notes 2022 2021
£ £
TANGIBLE FIXED ASSETS
Housing Land and Buildings
Housing Association schemes:
Gross cost 372,341 372,341
Housing Corporation grant (121,155) (121,155)
Abbeyfield Society grant (100,000) (100,000)
Depreciation (26,028) (24,064)
Net book value 8 125,128 126,122
Furnishings and Equipment 9 6,037 229
TOTAL FIXED ASSETS 131,195 126,351
CURRENT ASSETS
Cash at bank and in hand 147,098 156,308
CURRENT LIABILITIES
Creditors: amounts falling due within one year 10 2,896 4,038
NET CURRENT ASSETS 144,202 152,270
TOTAL ASSETS LESS CURRENT LIABILITIES £275,397 £278,621
Represented by:
UNRESTRICTED FUNDS - Revenue Reserve 11 191,345 194,569
RESTRICTED FUNDS - Capital Reserve 11 84,052 84,052
£275,397 £278,621
----- End of picture text -----
The Committee approved the financial statements on
………………………………. Director
………………………………. Director
- 7 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1. STATUS OF SOCIETY
The Society was re-registered under the Companies Act on 7 November 2019, previously being registered under the Co-operative and Community Benefit Societies Act 2014. The Society is a Registered Housing Association under the Housing Associations Act 1996.
The Society is wholly engaged in hostel activities as defined in the Housing Act 1996.
2. ACCOUNTING POLICIES
Accounting basis
These financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards in the United Kingdom and in accordance with the Statement of Recommended Practice (the SORP) issued by the National Federation of Housing Associations, the Welsh Federation of Housing Associations and the Scottish Federation of Housing Associations, and with the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 1997 to 2000.
Turnover
Turnover comprises rental and service income receivable.
Fixed Assets, Housing Land and Buildings
Housing land and buildings are stated at cost. The cost of properties is their purchase price together with incidental costs of acquisition including interest payable. Interest payable is capitalised by applying the Society's cost of borrowing to expenditure during the construction of the property up to the date of practical completion.
Housing properties in the course of construction are stated at cost and are transferred into housing properties when completed.
Depreciation
Housing land and buildings SHG assisted schemes
-
(i) Depreciation, as defined in (ii) below, is provided on the cost of freehold buildings;
-
(ii) Depreciation is not charged on that portion of the cost which has qualified, or which will qualify for SHG;
-
(iii) For that portion of the cost financed by borrowings or from the Society's own or other charitable resources, a charge is made to the hostel property revenue account for depreciation on buildings at 1% per annum on such cost.
-
8 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022 (continued)
2. ACCOUNTING POLICIES (continued)
Fixtures, Fittings and Equipment
Depreciation is charged on the reducing balance basis at 20% per annum on net book value, except for computers, on which depreciation is charged at 33% per annum on a straight line basis.
General
A full depreciation charge is made on fixed assets in the year that the asset is brought into use and no charge is made in the year of disposal.
Social Housing Grant
Where developments have been financed wholly, or partly, by Social Housing Grant (SHG), the net book value of those developments has been reduced by the amount of the grant receivable which is shown separately in the balance sheet. Provision is made for repayment of SHG where the property is expected to be sold in the foreseeable future. SHG in respect of housing properties in the course of construction received in advance of expenditure is shown as a current liability.
Fixed Assets
Assets donated to the Society are not included in the balance sheet; other assets are included at cost.
Allocation of Expenses
Expenses are allocated to management, repairs and service costs on the basis of the proportion of time or other relevant factors attributable to these activities.
Cash Flow Statement
The Society is exempt from producing a cash flow statement under FRS 1 by virtue of its qualifying as a small company.
Monetary Donations
Monetary donations to the society are credited to the income and expenditure account on a receipts basis.
Corporation Tax and VAT
The Society has charitable status and is exempt from Corporation Tax on the income it has received.
The Society is not registered for VAT. Accordingly no VAT is charged to residents, and expenditure in the income and expenditure account includes the relevant VAT.
Pensions
The Society operates a defined contribution pension scheme under its automatic enrolment obligations.
- 9 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022 (continued)
| 3. TURNOVER Turnover comprises: Maximum residential charges receivable Losses by vacancies Other income £ 4. OPERATING COSTS Operating costs include: Independent examiner’s remuneration (includes bookkeeping and payroll work) £ 5. INTEREST RECEIVABLE AND SIMILAR INCOME Bank and short-term deposit interest (gross) 6. EMPLOYEES Employee costs: Salaries and wages Employer’s national insurance contributions Employer’s pension contributions £ Average full-time equivalent number of persons employed during the year: Hostel staff |
2022 £ 149,880 23,845 126,035 2,001 128,036 2022 1,016 2022 £ 50 2022 £ 68,575 - 1,051 69,652 2022 4 |
£ |
2021 £ 142,176 17,424 124,752 6,386 131,138 2021 £ 633 2021 £ 121 2021 £ 65,627 73 1,081 66,781 2021 4 |
|
|---|---|---|---|---|
£ |
||||
- 10 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022 (continued)
7. PAYMENTS TO MEMBERS, COMMITTEE MEMBERS, OFFICERS, ETC
| 8. | Fees, remuneration or expenses payable to members of the Society who were neither members of the Committee of Management, nor employees of the Society Fees, remuneration or expenses payable to members of the Committee of Management of the Society who were neither officers nor employees of the Society Fees, remuneration or expenses paid to officers of the Society who were not employees Payments or gifts made, or benefits granted, to the persons referred to in section 13 and 15 of the Housing Associations Act 1996 HOUSING LAND AND BUILDINGS SHG Assisted Schemes–Freehold Cost–Completed Schemes At 1 October 2021 and 30 September 2022 Depreciation At 1 October 2021 Charge for the year At 30 September 2022 HOUSING CORPORATION GRANT ABBEYFIELD SOCIETY GRANT Net Book Value At 30 September 2022 £ |
2022 £ Nil Nil Nil Nil 2022 £ 372,341 25,064 964 26,028 121,155 100,000 221,155 125,158 £ |
2021 £ Nil Nil Nil Nil 2021 £ 372,341 24,100 964 25,064 121,155 100,000 221,155 126,122 |
|---|---|---|---|
- 11 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022 (continued)
| 9. 10. 11. |
FURNISHINGS AND EQUIPMENT Cost At 1 October 2021 Additions At 30 September 2022 Depreciation At 1 October 2021 Charge for the year At 30 September 2022 Net Book Value At 30 September 2022 £ CREDITORS Amounts falling due within one year: Accruals £ RESERVES UNRESTRICTED FUNDS Revenue Reserve £ Total at 1 October 2021 194,569 Deficit/(Surplus) for the year (3,224) Total at 30 September 2022 £191,345 |
2022 2021 £ £ 19,681 19,681 6,506 - 26,186 19,681 19,452 19,395 697 57 20,149 19,452 6,037 £ 229 2022 2021 2,896 £ 4,038 RESTRICTED FUNDS Capital Reserve £ 189,938 4,631 £194,569 |
2022 2021 £ £ 19,681 19,681 6,506 - 26,186 19,681 19,452 19,395 697 57 20,149 19,452 6,037 £ 229 2022 2021 2,896 £ 4,038 RESTRICTED FUNDS Capital Reserve £ 189,938 4,631 £194,569 |
2022 2021 £ £ 19,681 19,681 6,506 - 26,186 19,681 19,452 19,395 697 57 20,149 19,452 6,037 £ 229 2022 2021 2,896 £ 4,038 RESTRICTED FUNDS Capital Reserve £ 189,938 4,631 £194,569 |
|---|---|---|---|---|
£ |
- 12 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022 (continued)
12. CONTINGENT LIABILITIES
There were no contingent liabilities at 30 September 2022 (2021 – Nil).
13. CAPITAL COMMITMENTS
There were no capital commitments at 30 September 2022 (2021 – Nil).
| 14. HOUSING STOCK Housing stock comprises: Units in management Units under development |
2022 10 - |
2021 10 - |
|---|---|---|
- 13 -
THE ABBEYFIELD WEST WIGHT SOCIETY LIMITED
DETAILED HOSTEL PROPERTY REVENUE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
| RESIDENTIAL CHARGES RECEIVABLE OTHER INCOME IWC rates grants received Guest room and sundry income Donations received Bank and building society interest TOTAL INCOME EXPENDITURE – MANAGEMENT EXPENSES Affiliation fee Examiner’s remuneration and payroll cost Printing, stationery and postage Bank charges EXPENDITURE – SERVICE COSTS Staff wages and national insurance Food and household costs Heat and light Insurance Water and sewerage Council tax Telephone Wight Care call system costs Garden maintenance Travel Cleaning and refuse Depreciation Miscellaneous MAINTENANCE OF PREMISES AND EQUIPMENT TOTAL EXPENDITURE (DEFICIT)/SURPLUS ON ORDINARY ACTIVITIES £ |
2022 £ 126,035 1,663 338 - 50 128,086 3,225 1,016 148 242 4,631 69,625 14,092 10,395 - 2,487 1,766 1,062 2,831 3,250 480 3,835 1,661 2,243 113,727 12,952 131,310 (3,224) £ |
2021 £ 124,725 5,191 1,195 - 121 131,259 3,193 633 204 259 4,277 66,781 15,005 8,986 1,870 1,801 1,710 896 3,775 2,834 467 4,277 1,021 2,453 111,876 10,463 126,628 4,631 |
|---|---|---|
- 14