Charity number: 201460
Merton United Charities
Trustees' report and financial statements
for the year ended 31 March 2023
Merton United Charities
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 16 |
Merton United Charities
Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2023
Trustees
Rev John Hayward, Chairman1 Derek Cox, Treasurer2 Bridget Smith (Retired 30 May 2022)3 Stephanie Hitchins3 Ronald Dominy2 Ed Foley3 Cathy Loughran2
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
Accountants
Kreston Reeves LLP Chartered Accountants Statutory Auditor Montague Place, Quayside Chatham Maritime, Chatham Kent, ME4 4QU
Independent Examiners
Susan Robinson BA FCA FCIE DChA Kreston Reeves LLP Chartered Accountants Montague Place, Quayside Chatham Maritime, Chatham Kent, ME4 4QU
Page 1
Merton United Charities
Trustees' report
for the year ended 31 March 2023
The Trustees present their annual report together with the financial statements of the Charity for the year from 1 April 2022 to 31 March 2023.
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:
-
For the benefit of Residents of the Almshouse;
-
For the benefit of the poor of the former Parish of Merton;
-
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 2023
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 £78,960 (2022: £50,019).
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 three 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 2023
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.
Approved by order of the members of the Board of Trustees on and signed on 47 TTI Seat 213 their behalf by:
Rev John Hayward Trustee
Derek Cox Trustee
Page 4
Merton United Charities
Independent examiner's report for the year ended 31 March 2023
Independent examiner's report to the Trustees of Merton United Charities ('the Charity')
I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2023.
Responsibilities and basis of report
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) 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.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and 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.
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. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed: Dated: 18 December 2023 Susan Robinson BA FCA FCIE DChA
Kreston Reeves LLP
Chartered Accountants Montague Place, Quayside Chatham Maritime, Chatham Kent, ME4 4QU
Page 5
Merton United Charities
Statement of financial activities for the year ended 31 March 2023
| Note Income from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income Expenditure on: Charitable activities 7,8 Total expenditure Net income before net (losses)/gains on investments Net (losses)/gains on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 4,200 39,467 3,584 47,251 18,310 18,310 28,941 (2,621) 26,320 229,314 26,320 255,634 |
Total funds 2023 £ 4,200 39,467 3,584 47,251 18,310 18,310 28,941 (2,621) 26,320 229,314 26,320 255,634 |
Total funds 2022 £ - 37,596 3,379 |
|---|---|---|---|
| 40,975 | |||
| 16,427 | |||
| 16,427 | |||
| 24,548 6,124 |
|||
| 30,672 | |||
| 198,642 30,672 |
|||
| 229,314 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 16 form part of these financial statements.
Page 6
Merton United Charities
Balance sheet as at 31 March 2023
| 2023 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Note | £ | £ | ||||
| Fixed assets | ||||||
| Tangible assets | 10 | 85,213 | 85,213 | |||
| Investments | 11 | 91,461 | 94,082 | |||
| 176,674 | 179,295 | |||||
| Current assets | ||||||
| Debtors | 12 | 3,164 | 4,550 | |||
| Cash at bank and in hand | 79,130 | 47,629 | ||||
| 82,294 | 52,179 | |||||
| Creditors: amounts falling due within one | ||||||
| year | 13 | (3,334) | (2,160) | |||
| Net current assets | 78,960 | 50,019 | ||||
| Total net assets | 255,634 | 229,314 | ||||
| Charity funds | ||||||
| Unrestricted funds | 14 | 255,634 | 229,314 | |||
| Total funds | 255,634 | 229,314 |
The financial statements were approved and authorised for issue by the Trustees on and 1222 signed on their behalf by:
Rev John Hayward Derek Cox Trustee Trustee
The notes on pages 8 to 16 form part of these financial statements.
Page 7
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
1. General information
Merton United Charities is an unincorporated charity in England and Wales. The registered office is The Vicarage, St Mary the Virgin, Church Path, London, SW19 3HJ. The principal objective of the Charity is the provision of accommodation 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 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.
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.
The financial statements have been prepared in UK sterling, being the its functional currency, and rounded to the nearest pound.
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.
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 8
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
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 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.
2.7 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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.
Page 9
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
2. Accounting policies (continued)
2.9 Debtors
Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
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.
3. Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity does not currently have any significant accounting estimates or areas of judgement.
Page 10
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
4. Income from donations and legacies
| Donations 5. Income from charitable activities Social housing lettings Total 2022 6. Investment income Income from local listed investments Total 2022 7. Analysis of expenditure on charitable activities Summary by fund type |
Unrestricted funds 2023 £ 4,200 Unrestricted funds 2023 £ 39,467 37,596 Unrestricted funds 2023 £ 3,584 3,379 |
Total funds 2023 £ 4,200 Total funds 2023 £ 39,467 37,596 Total funds 2023 £ 3,584 3,379 |
Total funds 2022 £ - |
|---|---|---|---|
| Total funds 2022 £ 37,596 |
|||
| Total funds 2022 £ 3,379 |
|||
| Charitable activities Total 2022 |
Unrestricted funds 2023 £ 18,310 16,427 |
Total funds 2023 £ 18,310 16,427 |
Total funds 2022 £ 16,427 |
|---|---|---|---|
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Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
8. Analysis of expenditure by activities
| Charitable activities Total 2022 Analysis of support costs Telephone Donations to residents Sundry expenses Maintenance Cleaning Clerk's remuneration Heat and light Insurance Independent examination fees Residents income waived Legal and professional fees Total 2022 |
Support costs 2023 £ 18,310 16,427 Unrestricted funds 2023 £ 624 2,400 463 5,004 1,388 3,050 820 987 2,376 478 720 18,310 16,427 |
Total funds 2023 £ 18,310 16,427 Total funds 2023 £ 624 2,400 463 5,004 1,388 3,050 820 987 2,376 478 720 18,310 16,427 |
Total funds 2022 £ 16,427 |
|---|---|---|---|
| Total funds 2022 £ 624 - 438 5,481 1,280 3,250 374 922 2,160 1,178 720 |
|||
| 16,427 | |||
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).
Page 12
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
10. Tangible fixed assets
| Cost less social housing grant At 1 April 2022 At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Freehold property £ 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.
11. Fixed asset investments
| Cost or valuation At 1 April 2022 Revaluations At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Listed investments £ 94,082 (2,621) |
|---|---|
| 91,461 | |
| 91,461 | |
| 94,082 |
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 13
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
12. Debtors
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Due within one year | ||
| Other debtors | 3,164 | 4,550 |
13. Creditors: Amounts falling due within one year
| Other creditors Accruals |
2023 £ 958 2,376 3,334 |
2022 £ - 2,160 |
|---|---|---|
| 2,160 |
14. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Routine maintenance fund Extraordinary repairs fund Cyclical maintenance fund General funds Reserves Total Unrestricted funds |
Balance at 1 April 2022 £ 7,373 55,000 2,295 64,668 164,646 229,314 |
Income £ - - - - 47,251 47,251 |
Expenditure £ (1,901) - - (1,901) (16,409) (18,310) |
Gains/ (Losses) £ - - - - (2,621) (2,621) |
Balance at 31 March 2023 £ 5,472 55,000 2,295 |
|---|---|---|---|---|---|
| 62,767 | |||||
| 192,867 | |||||
| 255,634 |
Page 14
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
14. 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 Designated funds Routine maintenance fund Extraordinary repairs fund Cyclical maintenance fund General funds Reserves Total Unrestricted funds |
Balance at 1 April 2021 £ 7,793 55,000 2,295 65,088 133,554 198,642 |
Income £ - - - - 40,975 40,975 |
Expenditure £ (420) - - (420) (16,007) (16,427) |
Gains/ (Losses) £ - - - - 6,124 6,124 |
Balance at 31 March 2022 £ 7,373 55,000 2,295 |
|---|---|---|---|---|---|
| 64,668 | |||||
| 164,646 | |||||
| 229,314 |
15. Summary of funds
Summary of funds - current year
| Designated funds General funds |
Balance at 1 April 2022 £ 64,668 164,646 229,314 |
Income £ - 47,251 47,251 |
Expenditure £ (1,901) (16,409) (18,310) |
Gains/ (Losses) £ - (2,621) (2,621) |
Balance at 31 March 2023 £ 62,767 192,867 |
|---|---|---|---|---|---|
| 255,634 |
Page 15
Merton United Charities
Notes to the financial statements for the year ended 31 March 2023
15. Summary of funds (continued)
Summary of funds - prior year
| Designated funds General funds |
Balance at 1 April 2021 £ 65,088 133,554 198,642 |
Income £ - 40,975 40,975 |
Expenditure £ (420) (16,007) (16,427) |
Gains/ (Losses) £ - 6,124 6,124 |
Balance at 31 March 2022 £ 64,668 164,646 |
|---|---|---|---|---|---|
| 229,314 |
16. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2023 £ 85,213 91,461 82,294 (3,334) 255,634 |
Total funds 2023 £ 85,213 91,461 82,294 (3,334) |
|---|---|---|
| 255,634 |
Analysis of net assets between funds - prior year
| Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 85,213 94,082 52,179 (2,160) 229,314 |
Total funds 2022 £ 85,213 94,082 52,179 (2,160) |
|---|---|---|
| 229,314 |
17. Related party transactions
The Charity has not undertaken any related party transactions during the financial year (2022: £Nil) and there are no balances outstanding with them at the Balance sheet date (2022: £Nil).
Page 16