WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Re8ulator of Social Housing no. A0208 Charity Cofflmi$5ion no. 201017 Trustee. mana8ement and prfjncipal ad¥lsors Trustees report 24 Staternenl olTrustee's ￿ponsIbIlItieS Independeni Auditorfs feport 64 Staternenl of comprehensive in￿rne io ststerneThl of financlal posiiion li stsiement of changes in Resèrves 12 Not¢J to ihe fin•n¢i•l stotements 13-Zl WATER5 ALMSHOU5E5 TRUSTEE. MANAGEMENT, AND PRINCIPAL ADVISORS Trustee The Cambridge Housing Society Limited Mana8ernent Management is provided by The Cambrid8e Housing Society ￿rnited External auditor Beever and Struthers 15 8unhill Row Londofi. ECIY 8LP Devonshires sollc1to￿ LLP Finsbury Circus London. EC2M 70T Investmenr mana8er M&G Investrnents 10 Fenchurch Avenue London, EC3M SAG Banker Lloyd$ 8aThk PIC 25 Gresham Street London, EC2V 7HN AoBl$rered 0ffi¢o Endurance WouAr Chivers Way Histon, Cambrid8e. C824 9ZR Page I WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR END£0 31 MARCH 2021 Report ol the Trustee The Trustee prest￿t$ its report and financial statements for the year ended 31 March 2021. Trustee The sole Trustee of ihe Charity is The Cambridge Housing Society ￿mIted. The Cambrid8e Housing S¢xiety Limited, Endurance House. Chivers Way. Histon, Cambridge, C824 92R is responsible for the day tD day running and the overall administration of the Chartty. The financial 5taternent5 of the Charity are consolidated into the group linancièl statements olThe Cambridge Housing Society Limited. Prlncip•l A¢tivlty W31ters Almshouses Ithe"Ch3riWI was foursded by the will ol Adelaide Waters on 30 June 1915 and conslsts of slx sln8le storev terraced bun8alows. The Charity's sole purpose Is to provide sotial rented xcommodation to residents meeting specific critefla. The residents shall be per50n5 01 not less than 60 years of age who are inhabitants of the City of Cambrid8e wirh a prelefence lor persgn5 resident In rhe Ecclesiastical parishes of sr Phillips Komsey iown 5t uamabas Lambrid8e. The Charlty Is re8lStered wlth the Regulator ol Sottal Housin& nurnbtr A0208. and wth the Charity Commi55i0n. number 201017. Flnanclal reportlng reglme Almshouse charities which are re8lstered provlders of sodal housln8 are subjett 10 the Part 8 reglme ol the CharStles Art 2011, but, in their case, this is a special regime which effeciively permits such charities to prepare actounts uni4er Part 8 in the same lorrn as the accounts which they are required ¢0 prepare under directions made under the Housln8 Act 1996. Accordln8ly, these flnancSal statements follow the Housin8 SORP 2018 ryransition ¢0 Hou5in8SORP.. 2018 Vpdate-. Publlc Benefit Entlty As è publit benefit entity. the Charity has applied the public benefit eThttty "PBE" prefixed para8raphs of Financial Reportln8 Standard 102. The Trustee confirm5 It h35 due regard to the public benefit siatutory 8uidance pioduced by the Charity Commisgion as required by the Charities Act 2011. The pro¥i5ion o150cial reThled xcommodation benefits those on low Incomes who meet the crlterla set out above. Results The Charity had a surplus lor the period 01 £6.26412020.' £20.8361, before iranslefs io reseThes and had net assets at 31 March 202101 £152,03012020.. £145.7661. Page 2 WATERS ALMSHOUSE5 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Report ofthe TruMee Value for money The Charity 31rnS to deliver value for money to maximise lis investment potential and ensure that it provide5 its customers with high-quality homes and services. Furthermore. the Trustee continuousty makes the best use of resources. both internally and externally, to achieve its goals and ensure thar all of its memlRTS ￿te1Ve a 5er¥ice which is good value. The areas to evidence value for money are as Follows.. Maxirnising revenue by reviewin8 savings reiurns against both short-terrn cash flow requirernents and potential to place cash on deposlt lor longer periods ol time- Obtaining competitive quote5 from suppliers for replacement of components to ensure value lor money is obtained.. Expenditure costs. includin8 uiilities. are reviewed to obtain the most cornpetitive prices. In the following financial year, Ihe Tnjstee will continue to monitor ongoin8 performance measure5 and carry out regular reviews. The regulator ha5 155ued value lor mow metrlcs to ensuft perfomiante 15 measured consistently for each Registered Provider. we have aoopiea ihese as reporred oeiow. No. Metr1¢ Reinvesrmenr New supply delivered- sotial New supply delsvered- non-sodal r?parinq EalTDA major repairs Indudéd uiter¢st cover Headline social housin8 Cost per unit Operating rnarginjjdeficitl- social houslnq................... Oper3tinfj morsin!Idefi¢itl_ overall Rerurn on caplial employed Z021 2020 2A 2B 2,694 1.122 6A 68 The Charlly does noi develop propertie5 or Invest In nth¥ homes. It does nor have any loans, and therefore has no Inttrest payment commitments. Corporate Governance The Trustee Is commltted to inie8rity and atcountability in the stewardship of the Charlvs affairs and considers that the Charity has complled throughout the year under rewew wiin ihe provisions ol ihe Naiionai Housing frederation's l-MPIF"l Lode of Governance 2015 in all respects. Compllance wlth Governance and Financlal Viablllty Standard The Trustee confirrns that the Charity has rnet the re8ulaiory expettations in the 8¢)vemante and financial viability standard. Risk managernent The Trustee incorporate5 the Charivs risk mana8ement straie8y into its ¢)wn 5tratw. Major risks are regularly reviewed and systems or procedures have been established to manage those risks. More information can be found in the group financial Statements of The Cambrtdge Housin8 Society Limited. PaRe 3 WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Report of the Trustee Reserves pollcy The Charity has no restricted reserves. It holds a de518nated cyclical maintenance reserve ihai s used to fvnd fvture cyclical repatrs. The Trustee carries out repairs and maintenance for the Charity and recharge5 the Charity accordingfy. There was no movernent in the reSe￿e lor the year. The Charity held total reserves ol £152,030 at rhe year*nd comprisin8 of an attumulated 5urplu5 of £147.004 and a designated ¢yclical maintenance reserve of £5,026. Of tot31 fund. held OF £157 93Q. the arno￿￿t that can On￿ be realidcd by diSPOSlIl8 Of tanslbl¢ fix¢d atss¢ts is £137,719, leJvins balance of £14.311. The balance covers the desi8nated cycllcal maintenante reserve of £5.026. Golng Concern The Trustee considers the financlal posiliofi of the Charity to be satisfactory and has provided financlal support in recent years lor works that took plèce in order to ensure that rhe Charity can continue to provide 5Ultable accomrnodation to its residents, h•rpfnrp rh• gnSn8 r.nnrprn hA*is *{ pr•paralinn Is consid@r￿ approprlaie Audltor The Trustee in office on the date of the approval of rhese financial statements has confirrned. as lar 35 It is aware, that there 15 no relevant Information of which the auditor is un3ware. The Trustee has confirmed that it has taken all the steps that it ought ro have token as Trusiee In order to make itself aware of any relevant audit information and to establlsh that it has been ommunicèted to the auditor. Page 4 WATERS ALMSHOUSe5 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Report of the Trustee statement of Tiustee's responsibilities in respect of the Trustee's annual report and the finanaal statements The Trustee is responsible for preparing Ihe Trustee'5 Annual Report and the financial statement5 in accordance with applicable law and Uniied Kin8dom Accounting Standard5 (United ￿ngdoM General￿ Actepted Accountin8 Practicel. The law applicable to charities in England & Wales and registered S￿131 hous¢ng legislation require the Trustee to prep3re financial statements for each financial year wh¢ch give a true and fair view of the state ol affair5 01 the charity and of the incomin8 resources and application of resources of the chafity lor that period. In preparin8 these financial statements, the Trusiee is required to.. In prepiring these tlnancial siaiements. the Trustee is ￿quired to: Select Sultable accountin8 poIKits and then appty them consisientjy.. Make judgernent5 and estimates that are reasoThable and prudent., State whether applicable accountin8 Standards have been followed. subject to any materfal departures disclosed and explained sn the financi31 starements., and Prepare the financial statements on the ioinR concern basis unless It ts Inaooropriate to oresume that the Charlty wlll continue in businèss. The Trustee is responsible lor keepln8 proper a¢tountTrnB rKords that disclose wlth reasonable accuraty at any time the Ilnancial pogltion of the charity and enable the Trusiee to ensure that the financial statements comply with the Charities Att 2011, the Housln8 and Regeneration Act 21W8. the Accounrin8 Direction lor private registered provider5 Of social housing In England 2019 and the provisions of the trust deed. The Tru5ree is responsible lor sale8uèrdin8 the a55et5 01 the charity and hence lor taking rpa%onablp stpps for rh? r*r*v•ntinn and rtpl•rtsnn nf fraiid and other icreeul•rities The linèncial staternents on page5 9 10 20 were approved and authori5ed for i$5ue by the Trustee on Au8USt 2021 and wèrè Signed on its behalf bv.. Nicola Scrivlngs On behalf ol thè sole trustèè. The Cambrid8e Housin8 society Limited. Date.. 17th August 2021 Pa8e 5 WATER5 ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Independent auditorf5 report to the Trustee of Waters Almshouses Opinion We have 3udited the financial statemenrs of Waters Almshouses 1.the charity") for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, Statement of Fsnancial P051tion. Statement of Changes in Resenfes and notes to the financial statements. including a summary of si8nificafit 3ccountlll8 policies. The financial reportin8 framework that has been applied In their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 Yhe Financial Reporting srandard applicable in the UK and Republic ol IrelaThd" Iunited KiThgdorn Generally Accepted Accounting In our opinion th• financial stat•m•nts'. 8ive a true and fair view ol the state of rhe charitys affairs as at 31 March 2021. and of Its Incoming resources and application of resources, includin8 its income and expenditure, lor the year then ended.. have been proper￿ prepared in aceordance with Unlted Klngdom Generally Accepted kcounting Prartice.. ano have been prepared in accordance with the requirements of rhe Chariiies Att 2011. the Housln8 and ReBeneration Act 2008 nd the AccounrinR LNrectlon lor Dri¥att reRi5tered pro¥ider5 of social hou5inq in Eniland 2019. Basls for opinion We conducted our audit in atcordance with Internattonal Standards on audStln8 IUKI IISAS IUKII and applicable law. Our responsibilities under those standard5 are further described in the Auditorfs responsibilitles for the audit of the flnanclal starements settlon of our report. We are independent ol the Charity sn accord3nce with the ethical requirement5 that are relevènt to our audit of the financial statements in the UL includin8 the FRCS Ethital stsmdard, and we have fulfilled our othèr eihical re5ponsiDiiiiies In accoroance wllfi fhese requirements. we bdleve thai the audlt evldence we have obtained Is Sufficient and appropriate to provide a basis lor our opinion. Concluslons relatlni to going concern In aydiiing the financial statements, we have Concluded that the Tfustee's use of the golng concern basis ol atcounting In the preparation of the financial statement5 15 apprgpriate. Based on the work we have performed, we have not identified any rnaterial uncertainties relating to events or condition5 that, individually or collectively. may casi sI8nificani doubt on the chaiity's ability to continut a5 a goin8 contern lor a period of at least twelve rnonths Irorn when the financial statements are authorised for issue. Our respon5ibll¢ties and the responslbllltles of the Trusiee wlth respect to 8Oin8 concern are described In the relevant sectiens ol this report. Other Informatlon The other Information comprises the inforrnation intluded in the annual report, other than the financial Statements and our auditorfs report thereon. The Trustee is responsible lor the other information. Our opinion on the financial statements does not cover the other inlorrnation and. we do not express any forni ol assurance conclusion thereon. In connection with our audit of the flnancial staremenis, our responsibiltty is to read the other infofrnation and, in doing so, tonsider whether the other inforrnation is mater¢ally inconsistent ￿th the finanoal statements or our knowledge obtained in Ihe audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent materi81 misstatements, we are required to determine whether there 15 3 rnaterial mis5taternent in the financial statements or a material misstatement ol the other information. If. based on ihe work we have perforrned, we conclude that there is a rnaterial mi55tatement ol thi5 Other inlorrnation. we are required to report thar fart. We have nothing to report in this regard. Page 6 WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Independent audilorfs report to theT￿Stee ot Water5 ￿M$houSe5 Matters on which we are required to report by exception We have nething to report in respect of the following maiters in relation to which ihe Charities IAc£ouftts and R@portsl Re8ulations 2008 require us to report to y¢Ju if. in ¢Jur opinion.. In the light of the knowledge and underst3ndin8 of the charity and its environment obtained in the course ol the audit, we have not identified maierial missratemenis in ihe Trusree's ￿ptsrt.. or proper accountin8 records have noi been kept.. Of the financial statements are not in agreement with the accounting records", or we have not received all the information and explanations we require for our audit. In additien, we have nothin8 to report sn re5PeCt ol the followin8 Matter where the Hou5in8 and Regeneration Act 2008 require5 us to report to you if, in our opinion.. a satlsfactory system OF control over transactions has not been maintained. Responslbllltle5 Qf the Trustee A5 explained more lully in the Trustee's Re5ponsibilitie5 Statement set out on page S. the Trustee is re5pon5ible Icr the preparation of the financSal staiemenis and for being satisfied that they give a truè and fair vièw, and for such internal tentrol as the Trustee determines is necessary lo enable the preparaiion oi financial staiemenrs that are free from material mi5StatemenL whether due to fraud or error. In preparin8 the finanrl31 statements. the Triisiee is responsible foc 4ssessi118 the ch>riWs #bility to eontlnue •% > eoith8 eorteern. disclosin8, as applicab￿, matters related to going tonctm and using the golng concern basis ol accountin8 unles5 the Trustee either intends to liquidate the charity or to cease operatlons. or have no realistic alternative bul to do so. Audltorfs respon55bilitles for the audlt of the flnanclal 5t3tements We have been appointed as auditor under stttion 144 01 the Charities Art 2011 and seetion 136 01 the Housin8 and Regeneration Act 2008 and Teport in accordance with regulations made under 154 of ihe Charities Aa 2011 and 5ectlon 137 of the Housing and Regeneration Art 2008. Our objective5 are to obtain reasonable assurance about wheiher the financial statements as a whole are free from materlal rnIS5tatement, whether dut to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a Buaiantee that an audit conducted in accordance with ISAS IUKI will always detect a material missiatement when it exists. Misstatements can arise from fraud or error and are considered material if, Individually r in th& ae8rpgAtp. th•y tould rpM%ttnAE>ly pxnpt.lpd ttt influpnr.p Ihp prA>nnrnir dpri%inn% nf 114prK takpn nn thp ha%14 nf thp4P finantlal statements. A further description ol our responsibilities for ihe audlt of the financial statements is located on the Flnanclal Reportln8 Council'5 website at www.Irc. audit This dexription Forms pan of our auditorfs report. Irregularitie5. including fraud, are instances of non-compliance with laws and re8ulations. We desi8n procedures In line wlth our responsibilities, outlined above. to detect rnaterial misstatement5 in respect of irre8ularities. includin8 fraud. The specific procedures lor thi5 engagement and the extent to whith these a￿ capable of deterting irre8ylaritie5. including fraud 15 detailed below., Page 7 WATERS ALMSHouses FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Independent auditorf5 report to the Trustee of Waters Almshouses The extent to which the audit was considered capable of detertlng Irregularitles Includlng fraud We identify and assess the risks ol material missrarement of the finanoal statements. whether due to fraud or error, and then design and perform audit pro1 st¥t*rn•nts di5c105ur•5 and t4st•d to supportin8 d¢xum•nt3tlon to as%•gs comp113nc4 wlth r4lwant laws and regulations discussed above. We enqulred of the Trusree about adual and potential lill83t￿)n and daims. We performed analyti¢al procedures io idèntify any unusual of unexpected relgtion5hips that might indicate r15k5 of material mi$5taternent due to Iraud. In addressing the risk of fraud due to rnana8ement overrlde ol Intemal controls wt tested iht approprlateness ol journal entrles and assessed whether the jud8em*nts mad* in making accounting estimate5 were indicative 013 Potential bias. Due to the inherent limitations of an audit. there 15 an unavoidable risk that we may not have detected some material misst3tements in the financial statements, even thou8h we have propedy plafined and performed Ouf audit in accordance with auditing 5tandard5. For example, as with any audit. there remained a higher risk of non-detettion of irregularlties. as these may Involve collusion, for8ery, Intentional omissions. misrepresentations. or the override of internal contro15. We are not responsible lor preventing fraud or non-compliance with laws and re8ulations antl cannot be expected io detect all fraud and non-compliance wth laws and re8ulatlons. Page B WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR EPIDED 31 MARCH 1021 Independent audff si4nifir.ani e.onr•rns hav￿ ntstprf in thp h114inpg4 plan iipdatpd f¢Jr ?O?l.?? ar*d therefore we onsider li appropriate to contlnue to prepare the financial 5taterneTr15 on è 8oln8 concern basls. Crltlcal •¢¢ounilni lud8•mènts and kry sources ot estlmatlon un¢ert•lnty The preparation of the finart£ial statements requires mana8ement to make jud8ementS, e5tirnates and assumptions that affect the amounts reported For assets and liabilitie5 as at the Statement or financial position date and the amounts reported lor revenue5 and expenses during the year. However, Ihe nature ol estimation means that actual outcomes could dlffer from those estlmates. The followin8 judgernents lapart from Ihose Involvlng e5tlmatesl have had the most 518nlficant effect on amounts fecognised in the financial staternents. Impalrm•nt. The Charity considers wherher indlcators of impaiment èX15t in relation to tangible a￿t5. Indicators tonsldered include external source5 01 information such as rnafkei value. maikei intefest rate5 and return5 on investment, 3Ctual or proposed changes to the technolo8icèI. economic or legal en¥iroThment. ob501escence or damage to the asset, operational chan8es or internal reporting which indicates rhat ihe asset is performin8 worse than expected. The Charity 150 con51der5 expected luture pertormar*ce oi the asset. Any impairment 10$5 Is charged to the Starement of Comprehensive Income. Impairment is recognised where the carrying value of a cash 8eneratsn8 unit exteed5 the hi8her of its net realisable value less COSt5 to sell or its value in use. A tash gènerating unit is normally a 8roup of properties at stheme level whose tash income can be Separately identified. The Charity identified no trigger5 lor impairmeni and impairment tests were not required. Other key sourcesojestlnwtlon undussurnptions.. Tanglble fixed assets.: Tangible fixed assets are depreciated over rheir useful lives takin8 into account residual value5, where appropriate. The attual lives of the asset5 and residual values are assessed annually and may vary dependin8 on a number of factor5. In re-a55essing asset lives, fattors such as tethnolo8ical innovation, product life cycles and maintenance prograrnmes are taken into account. Resitlual value asses5rnents consider issues such as future markei condition5, the remaining life of the asset and projected disposal values. The carrying value of tangible fixed a55ets at 31 March 2021 was £137,719. Paee 13 WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Notes to the flnanclal statements b. Fair value of financial i[￿r￿Ments. The calculation of faif value of financlal instruments at each reportln8 date is based on ctive markèt quotes if available, where not available a valuation technique is used ro make maximum use of market inputs and transactien5, using a discounted cash flow an?￿515. The carryinR Yalue of fifiancial instruments measured at fair value at 31 March 2021 was E57,341. Turn¢)vef and revenue re¢o8nTlion Turnover represents rental incorne receivable and amortised (apiral 8rant. Rental Income Ss ￿C09￿1$ed when rhe property is available for let. net of volds. Ser¥lce charges Service ¢har8e income and costs are retogni5ed on an accrua15 basis. The Charity operates both fixed and variable servlce chzrges in full consuliaiion with residents. Where variable service £h3r8es a¥e used the charges will include an allowance for the surplus or deficit from prior years. with the surplus being returned to residents by a reduced charge and a dellcit bein8 recovered by a hl8her char8e. Vntil these are returned or recovered they are held as creditors or debtor5 in the Statement of T3nglble flxed assetg- housln8 propertles Tan8lble fixed assets are stated at eost. less actumulated depreciation. The originèl c05t lin 19151 of the land and buildings owned by the Charity Is not known. Intluded within the eost disclosed in these financial statements (note 101 is £23.466 lor works carried out In 1975.76 which was partially funded by Housing Assnr.larinn C?fAni nf f17.771 Thp 8rAni wthiilrf tn hp rppaid il Al aThy limp thpEp pmpprtip% wpro 4nlrl Freehold land is not depreciated. Where a housin8 property Comprises Of more major componènt5 Vrrith sybstantially different usefvl ecgnomic lives IUEL51, each cornp¢nent is accounted lor separatety and depreciated over its individual UEL. Expenditure relatin8 t¢ gub5equent replacement or renewal of tornponènts 15 capitalised 35 incurred. The Chhrity depr*¢late5 fvethold hou5in8 properties by component on a stral8ht-Ilne basls over the estlrnated UEts of the component categorie5. ueLs for Identined components are as follows.. Structure Roo15 Bathrooms, windows and doors, Kitthens Bollers and heatlng ILMI years years 30 years 20 years IS years Valuatlon of Investmonts Investment5 in listed company shares. which have been dassified as fixed or current asset investments, are re-measured to market value at each reportin8 datt. Gain5 and losses gn fe-measurement are re¢o8nised in the 51atemeni of Comprehensive Income for the period. Short-term deblors and Credltors Debtor5 and creditor5 Wlth no stated iThterest rale and receNable or payable within one year are recorded at transaction prlce. Any losses arbing from impairmeni are ￿Cognised in the Statement ol Comprehensive lncorne in other operètin8 expenses. Pa8e 14 WATERS ALMSHOUSES FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAACH 2021 Notes to the financial Statements 5¢xlal Housln8 and other 8overnment grants Where develcpments have been financed wholty or parmy by social hou5in8 and other grant5, the amount of the grant recelved has been included as deferred income and recognised in Turnover over the estimated useful life of the 3550ciated asset structure (not landl, under the accruals model. SMG received for item5 01 cost written off in the Statement of Comprehensive Income Account is included as part of Turnover. When Social Housing Grant ISHGI in respert of housln6 properties in the course of construction exceeds the total cost io dale of those housing properties, rhe excess is shown a5 a currerst liability- SHG rnust be recycled by the Charity under certain tondit*)ns. if a property is sold, or if another relevant event take5 place. In these cases, the SHG tan be used lor projects approved by the Home5 England. However, SHG may have to be repaid if cerraln conditions are not met. If 8rant 15 not required to be rwcled or ￿paId, any unamortised grant is recognised a5 Turnover. In certèin circumstances, SHG may be repayable, and, in that event is a Subordinated unsecured repayable debt. Cycllcal Repalrs and Malnt¢nan