**Charity number: 201460** 

## **Merton United Charities** 

**Trustees' report and financial statements** 

**for the year ended 31 March 2021** 



## **Merton United Charities** 

## **Contents** 

||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 4|
|**Independent auditor's report on the financial statements**|5 - 8|
|**Statement of financial activities**|9|
|**Balance sheet**|10|
|**Notes to the financial statements**|11 - 20|





## **Merton United Charities** 

**Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2021** 

## **Trustees** 

Rev John Hayward1 

Derek Cox, Treasurer2 Bridget Smith3 Stephanie Hitchins3 Ronald Dominy2 Ed Foley3 

- 1 Ex Officio 

- 2 Co-opted Trustee 

- 3 Nominated Trustee 

## **Charity registered number** 

201460 

## **Principal office** 

The Vicarage St Mary the Virgin Church Path London SW19 3HJ 

## **Principal operating office** 

49 Tybenham Road London SW19 3LB 

## **Independent auditor** 

Kreston Reeves LLP Chartered Accountants Statutory Auditor Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU 

Page 1 



## **Merton United Charities** 

## **Trustees' report for the year ended 31 March 2021** 

The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 April 2020 to 31 March 2021. 

## **Objectives and activities** 

## **a. Policies and objectives** 

The Charity owns an almshouse containing six one-bedroom flats, providing accommodation restricted by the governing document to “poor women who have resided in the area of benefit (London Borough of Merton) for not less than two years preceding the time of their appointment”, with preference given to women who live in the former Parish of Merton. 

The Trustees are required to apply the income of the Charity firstly to maintaining the almshouse and secondly to reduce the need, hardship of, in the order of priority: 

1. For the benefit of Residents of the Almshouse; 

2. For the benefit of the poor of the former Parish of Merton; 

3. For the benefit of the poor of the London Borough of Merton. 

The Trustees’ primary aim is to continue improving the financial position of the Charity in order to ensure the Almshouse is fully maintained to a high standard and in full compliance with latest standards and suitable for continuing use by Residents who are capable of living without 24 hour care. 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. 

## **Achievements and performance** 

## **a. Review of activities** 

The Almshouse was extensively refurbished and modernised in the mid-1990's, though, due to financial constraints, this was achieved to a basic standard. 

Within the last five years or so, further refurbishment was undertaken as funds became available, when kitchens and bathrooms were replaced and each unit was provided with new floor coverings.  The flats were redecorated and the electrical installations were updated to latest standards. 

The Charity has been able to meet all its financial commitments over the year including gardening and maintenance works throughout the Almshouse, whilst continuing to establish healthy designated reserves. 

The Trustees continue to meet a minimum of four times per year and undertake pastoral and other duties in addition. 

## **Financial review** 

## **a. Going concern** 

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial statements.  Further details regarding the adoption of the going concern basis can be found in the accounting policies. 

Page 2 



## **Merton United Charities** 

## **Trustees' report (continued) for the year ended 31 March 2021** 

## **b. Reserves policy** 

As previously noted, after a period of economic stagnation resulting in minimal maintenance, the Almshouse was extensively modernised and refurbished in the mid-1990's, modernisation and routine maintenance more recently. 

The Trustees have considered the level of reserves they need to enable them to meet their objectives, which is to maintain the property to a high standard, including further refurbishment, repair, redecoration as considered necessary. 

They further consider funds are accumulating at a rate appropriate to meeting this objective and have set up designated funds to cover routine, cyclical and planned maintenance & improvement requirements for a building partly of eighteenth century origin. 

At the Balance sheet date, after taking into consideration the tangible fixed assets and the fixed asset investments, the Charity has free reserves amounting to £25,471 (2020: £8,930). 

## **Structure, governance and management** 

## **a. Constitution** 

The Charity is constituted under a trust deed, made in 1907, amended and sealed by Order of the Charity Commissioners dated 27 April 1995, is a registered charity number 201460 and is registered with the Almshouse Association. 

## **b. Methods of appointment or election of Trustees** 

The Body of Trustees consists of: 

One Ex-Officio Trustee being the current incumbent of St Mary the Virgin. Three Nominated and two Co-opted Trustees, who are either resident or work in the area of benefit. 

Trustees are nominated by the London Borough of Merton. Trustees are Co-opted by the Body of Trustees and are usually Church members. 

## **c. Risk management** 

The Trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.  The main risks the Charity faces are: the loss of its residents, resulting in a decrease in the income from social housing lettings; and fluctuations in the value of its listed investments. 

## **Plans for future periods** 

The Trustees will continue to support the objectives of the Charity for the foreseeable future. 

Page 3 



## **Merton United Charities** 

## **Trustees' report (continued) for the year ended 31 March 2021** 

## **Statement of Trustees' responsibilities** 

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial  which give a true and fair view of the state of affairs of the Charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

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

- state whether applicable UK Accounting Standards (FRS 102) 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 Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and 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. They are 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. 

## **Disclosure of information to auditor** 

- Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: 

- so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditor is unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information. 

Approved by order of the members of the Board of Trustees on                                                 and signed on their behalf by: 


**Rev John Hayward** Trustee 

**Derek Cox** Trustee 

Page 4 



## **Merton United Charities** 

## **Independent auditor's report to the Members of Merton United Charities** 

## **Opinion** 

We have audited the financial statements of Merton United Charities (the 'Charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 

The financial statements have been prepared in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. 

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019. 

In our opinion the financial statements: 

- give a true and fair view of the state of the Charity's affairs as at 31 March 2021 and of its income and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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. 

Page 5 



## **Merton United Charities** 

## **Independent auditor's report to the Members of Merton United Charities (continued)** 

## **Other information** 

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **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 Trustees' report 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 Trustees' responsibilities statement, 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. 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 145 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 an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Page 6 



## **Merton United Charities** 

## **Independent auditor's report to the Members of Merton United Charities (continued)** 

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: 

## _Capability of the audit in detecting irregularities, including fraud_ 

Based on our understanding of the Charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019) and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to: inappropriate journal entries to increase revenue or reduce expenditure; and management bias in accounting estimates and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included: 

- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and 

- Assessment of identified fraud risk factors; and 

- Challenging assumptions and judgements made by management in its significant accounting estimates; and 

- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and 

- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and 

- Reading minutes of meetings of those charged with governance; and 

- Review of significant and unusual transactions; and 

- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation 

Page 7 



## **Merton United Charities** 

## **Independent auditor's report to the Members of Merton United Charities (continued)** 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Charity's internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. 

- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed. 


## **Kreston Reeves LLP** 

Chartered Accountants Statutory Auditor 

Chatham Maritime 

Date: 1 December 2021 

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 

Page 8 



## **Merton United Charities** 

## **Statement of financial activities for the year ended 31 March 2021** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>3<br>Charitable activities<br>4<br>Investments<br>5<br>**Total income**<br>**Expenditure on:**<br>Charitable activities<br>6<br>**Total expenditure**<br>**Net income before net gains/(losses) on**<br>**investments**<br>Net gains/(losses) on investments<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>**500**<br>**37,532**<br>**3,584**<br>**41,616**<br>**25,075**<br>**25,075**<br>**16,541**<br>**16,291**<br>**32,832**<br>**165,810**<br>**32,832**<br>**198,642**|**Total**<br>**funds**<br>**2021**<br>**£**<br>**500**<br>**37,532**<br>**3,584**<br>**41,616**<br>**25,075**<br>**25,075**<br>**16,541**<br>**16,291**<br>**32,832**<br>**165,810**<br>**32,832**<br>**198,642**|Total<br>funds<br>2020<br>£<br>2,000<br>35,115<br>3,587<br>40,702<br>35,509<br>35,509<br>5,193<br>(15,513)<br>(10,320)<br>176,130<br>(10,320)<br>165,810|
|---|---|---|---|



The Statement of financial activities includes all gains and losses recognised in the year. 

The notes on pages 11 to 20 form part of these financial statements. 

Page 9 



## **Merton United Charities** 

## **Balance sheet as at 31 March 2021** 

|**2021**<br>**Note**<br>**£**<br>**Fixed assets**<br>Tangible assets<br>8<br>**85,213**<br>Investments<br>9<br>**87,958**<br>**173,171**<br>**Current assets**<br>Debtors<br>10<br>**3,347**<br>1,566<br>Cash at bank and in hand<br>**24,368**<br>9,506<br>**27,715**<br>11,072<br>Creditors: amounts falling due within one<br>year<br>11<br>**(2,244)**<br>(2,142)<br>**Net current assets**<br>**25,471**<br>**Total net assets**<br>**198,642**<br>**Charity funds**<br>Unrestricted funds<br>12<br>**198,642**<br>**Total funds**<br>**198,642**<br>The financial statements were approved and authorised for issue by the Trustees on<br>signed on their behalf by:<br>**Rev John Hayward**<br>Trustee<br>**Derek Cox**<br>Trustee|2020<br>£<br>85,213<br>71,667|
|---|---|
||156,880<br>8,930|
||165,810|
||165,810|
||165,810|
||an|



The financial statements were approved and authorised for issue by the Trustees on                                       and signed on their behalf by: 

The notes on pages 11 to 20 form part of these financial statements. 

Page 10 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **1. General information** 

Merton United Charities is an unincorporated charity in England and Wales.  The registered office is The The Vicarage, St Mary the Virgin, Church Path, London, SW19 3HJ.  The principal objective of the Charity is the provision of accomodation to “poor women who have resided in the area of benefit (London Borough of Merton) for not less than two years preceding the time of their appointment”, with preference given to women who live in the former Parish of Merton.  This is as stated in the Charity's governing document. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

The financial statements 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 has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

Merton United Charities meets the definition of a public benefit entity under FRS 102.  Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

## **2.2 Going concern** 

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern.  The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. 

Whilst the impact of the Covid-19 pandemic has been assessed by the Trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Charity's future activities.  However, taking into consideration the Charity's level of reserves, the Trustees believe that the Charity will be able to continue in operational existence for the foreseeable future. 

## **2.3 Income** 

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. 

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

Page 11 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **2. Accounting policies (continued)** 

## **2.4 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. 

All expenditure is inclusive of irrecoverable VAT. 

## **2.5 Social Housing Grant** 

Where developments have been financed wholly or partly by Social Housing Grant (SHG), the cost of these developments has been reduced by the amount of the grant received. 

SHG can be recycled by the Charity under certain conditions, if a property is sold, or if another relevant event takes place. In these cases, the SHG can be used for projects approved by the Homes and Communities Agency. However, SHG may have to be repaid if certain conditions are not met. 

The SHG relating to the freehold property of Merton United Charities amounted to £215,695. 

## **2.6 Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 

## **2.7 Fixed assets - housing properties** 

Housing properties are stated at cost less the related SHG. 

Depreciation is charged on housing properties excluding freehold land, on a straight line basis over the expected economic useful life of the property. The Trustees believe that the properties will have a life of 100 years. 

The Trustees have not accounted for depreciation on the housing properties because the depreciation charge and accumulated depreciation are immaterial using the rates and basis above. The Trustees annually review the materiality of the housing properties depreciation. 

When housing properties have suffered a permanent diminution in value, the fall in value is recognised after taking account of any related SHG. 

Page 12 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **2. Accounting policies (continued)** 

## **2.8 Investments** 

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment.  Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities. 

## **2.9 Debtors** 

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

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

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **2.11 Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation.  Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability.  The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 

## **2.12 Financial instruments** 

The Charity only 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 their settlement value. 

## **2.13 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. 

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.  The aim and use of each designated fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 13 



## **Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **3. Income from donations and legacies** 

|Donations<br>Total 2020<br>**Income from charitable activities**<br>Social housing lettings<br>Total 2020<br>**Investment income**<br>Income from local listed investments<br>Interest receivable from cash investment<br>Total 2020|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>500<br>2,000<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>37,532<br>35,115<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>3,584<br>-<br>3,584<br>3,587|**Total**<br>**funds**<br>**2021**<br>**£**<br>**500**<br>2,000<br>**Total**<br>**funds**<br>**2021**<br>**£**<br>**37,532**<br>35,115<br>**Total**<br>**funds**<br>**2021**<br>**£**<br>**3,584**<br>**-**<br>**3,584**<br>3,587|Total<br>funds<br>2020<br>£<br>2,000|
|---|---|---|---|
||||Total<br>funds<br>2020<br>£<br>35,115|
||||Total<br>funds<br>2020<br>£<br>3,584<br>3<br>3,587|
|||||



## **4. Income from charitable activities** 

## **5. Investment income** 

Page 14 



## **Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **6. Analysis of expenditure by activities** 

|Charitable activities<br>Total 2020<br>**Analysis of support costs**<br>Telephone<br>Sundry expenses<br>Maintenance<br>Cleaning<br>Clerk's remuneration<br>Heat and light<br>Insurance<br>Auditors' remuneration<br>Legal and professional fees<br>Total 2020|**Support**<br>**costs**<br>**2021**<br>**£**<br>25,075<br>35,509<br>**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>624<br>3,748<br>12,135<br>1,485<br>3,000<br>361<br>758<br>2,244<br>720<br>25,075<br>35,509|**Total**<br>**funds**<br>**2021**<br>**£**<br>**25,075**<br>35,509<br>**Total**<br>**funds**<br>**2021**<br>**£**<br>**624**<br>**3,748**<br>**12,135**<br>**1,485**<br>**3,000**<br>**361**<br>**758**<br>**2,244**<br>**720**<br>**25,075**<br>35,509|Total<br>funds<br>2020<br>£<br>35,509|
|---|---|---|---|
||||Total<br>funds<br>2020<br>£<br>624<br>1,634<br>25,139<br>1,118<br>3,000<br>394<br>766<br>2,142<br>692<br>35,509|
|||||



## **7. Trustees' remuneration and expenses** 

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). 

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL). 

Page 15 



## **Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **8. Tangible fixed assets** 

|**Cost less social housing grant**<br>At 1 April 2020<br>At 31 March 2021<br>**Net book value**<br>At 31 March 2021<br>At 31 March 2020|**Freehold**<br>**property**<br>**£**<br>**85,213**|
|---|---|
||**85,213**|
||**85,213**|
||85,213|



As mentioned in the accounting policies, the Charity's freehold property is stated at cost less the Social Housing Grant received of £215,695. 

## **9. Fixed asset investments** 

|**Cost or valuation**<br>At 1 April 2020<br>Revaluations<br>At 31 March 2021<br>**Net book value**<br>At 31 March 2021<br>At 31 March 2020|**Listed**<br>**investments**<br>**£**<br>**71,667**<br>**16,291**|
|---|---|
||**87,958**|
||**87,958**|
||71,667|



Fixed asset investments, at market value, comprise listed investments held in the M&G charity multi asset fund GBP Inc.  At the Balance sheet date the Charity holds 102,396.743 income shares, which are all held in the UK. 

Page 16 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **10. Debtors** 

|**Due within one year**<br>Other debtors<br>**11.**<br>**Creditors: Amounts falling due within one year**<br>Accruals<br>**12.**<br>**Statement of funds**<br>**Statement of funds - current year**<br>**Balance at 1**<br>**April 2020**<br>**£**<br>**Income**<br>**£**<br>**Unrestricted funds**<br>**Designated funds**<br>Routine maintenance fund<br>**11,380**<br>**-**<br>Extraordinary repairs fund<br>**55,000**<br>**-**<br>Cyclical maintenance fund<br>**2,295**<br>**-**<br>**68,675**<br>**-**<br>**General funds**<br>Reserves<br>**97,135**<br>**41,616**<br>**Total Unrestricted funds**<br>**165,810**<br>**41,616**|**Expenditure**<br>**£**<br>**(3,587)**<br>**-**<br>**-**<br>**(3,587)**<br>**(21,488)**<br>**(25,075)**|**2021**<br>**£**<br>**3,347**<br>**3,347**<br>**2021**<br>**£**<br>**2,244**<br>**Gains/**<br>**(Losses)**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**16,291**<br>**16,291**|2020<br>£<br>1,566|
|---|---|---|---|
||||1,566|
||||2020<br>£<br>2,142|
||||**Balance at**<br>**31 March**<br>**2021**<br>**£**<br>**7,793**<br>**55,000**<br>**2,295**<br>**65,088**|
||||**133,554**|
||||**198,642**|



Page 17 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **12. Statement of funds (continued)** 

## Designated funds 

## _Routine maintenance fund_ 

Established to provide for the maintenance and repairs of the buildings. 

## _Extraordinary repair fund_ 

Established to provide for the extraordinary repair, improvement or rebuilding of the almshouses. 

## _Cyclical maintenance fund_ 

Established to provide for items of ordinary maintenance of the almshouses, which recur at infrequent intervals. 

## **Statement of funds - prior year** 

|**Unrestricted funds**<br>**Designated funds**<br>Routine maintenance fund<br>Extraordinary repairs fund<br>Cyclical maintenance fund<br>**General funds**<br>Reserves<br>**Total Unrestricted funds**|Balance at<br>1 April 2019<br>£<br>11,380<br>55,000<br>22,106<br>88,486<br>87,644<br>176,130|Income<br>£<br>-<br>-<br>-<br>-<br>40,702<br>-|Expenditure<br>£<br>-<br>-<br>(19,811)<br>(19,811)<br>(15,698)<br>(35,509)|Gains/<br>(Losses)<br>£<br>-<br>-<br>-<br>-<br>(15,513)<br>(15,513)|Balance at<br>31 March<br>2020<br>£<br>11,380<br>55,000<br>2,295<br>68,675|
|---|---|---|---|---|---|
||||||97,135|
||||||165,810|



Page 18 



**Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **13. Summary of funds** 

## **Summary of funds - current year** 

|Designated funds<br>General funds|**Balance at 1**<br>**April 2020**<br>**£**<br>**68,675**<br>**97,135**<br>**165,810**<br>Balance at<br>1 April 2019<br>£<br>88,486<br>87,644<br>176,130|**Income**<br>**£**<br>**-**<br>**41,616**<br>**41,616**<br>Income<br>£<br>-<br>40,702<br>40,702|**Expenditure**<br>**£**<br>**(3,587)**<br>**(21,488)**<br>**(25,075)**<br>Expenditure<br>£<br>(19,811)<br>(15,698)<br>(35,509)|**Gains/**<br>**(Losses)**<br>**£**<br>**-**<br>**16,291**<br>**16,291**<br>Gains/<br>(Losses)<br>£<br>-<br>(15,513)<br>(15,513)|**Balance at**<br>**31 March**<br>**2021**<br>**£**<br>**65,088**<br>**133,554**<br>**198,642**|
|---|---|---|---|---|---|
||||||Balance at<br>31 March<br>2020<br>£<br>68,675<br>97,135<br>165,810|
|**Summary of funds - prior year**||||||
|Designated funds<br>General funds||||||



## **14. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Tangible fixed assets<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>**Total**|**Unrestricted**<br>**funds**<br>**2021**<br>**£**<br>85,213<br>87,958<br>27,715<br>(2,244)<br>198,642|**Total**<br>**funds**<br>**2021**<br>**£**<br>**85,213**<br>**87,958**<br>**27,715**<br>**(2,244)**<br>**198,642**|
|---|---|---|



Page 19 



## **Merton United Charities** 

## **Notes to the financial statements for the year ended 31 March 2021** 

## **14. Analysis of net assets between funds (continued)** 

## **Analysis of net assets between funds - prior year** 

|Tangible fixed assets<br>Fixed asset investments<br>Current assets<br>Creditors due within one year<br>**Total**|Unrestricted<br>funds<br>2020<br>£<br>85,213<br>71,667<br>11,072<br>(2,142)<br>165,810|Total<br>funds<br>2020<br>£<br>85,213<br>71,667<br>11,072<br>(2,142)<br>165,810|
|---|---|---|



## **15. Related party transactions** 

The Charity has not undertaken any related party transactions during the financial year (2020: £Nil) and there are no balances oustanding with them at the Balance sheet date (2020: £Nil). 

Page 20