2022-12-31-accounts

Homes & Community Agency Registered Number.. A3603 Charity RegSstffi•d Numbor". 202152 The Society of Merchant Venturers, Almshouses Charity Annual report and financial statements for the year ended 31 December 2022

The Society of Merchant Venturers, Almshouses Charity Annual report and financial statements for the year ended 31 December 2022 Contents Page Rep)rt of the Truslee Independent auditor's rep(Ki lo the Trustee of The Society of Merchant Venturers, Amshouse Charity Statement of comprehensive income Balance sheet 12 13 Principal aecounting poI￿leS Notes lo the financial slalemenls 14

The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2022 The Trustee presents ils annual report and the ￿tIlled financral statements for Ihe year en¢Jed 31 December 2022. These financial statements have been wepared in a¢xordance with the Tnjsl deed. the Slalemenl of Recommended Practice "Accounting by Registered Social Landlords" (updated 20191, the Accounting Direction for Private Registered Provi(5ers of Social Housing 2019 and FRS 102. Trustee. officers and advisers The Trustee of the Charity is SMV Trustee Company Limited. Listed below are those members who have served on Ihe Board of SMV Tnjstee Company Limited during the year.. Patrick Despard Michael Bolhamley Robert Bourns David Freed Gilli8n C8mm Ros5 Ancell Charles Grrffilhs Alan Lews Mohammed Saddiq Jonalhon Baker Martin Thatcher Dr Steve Allpress Nick Bak Karl Tvcker Kalharine Finn David Powdl Mark Burchfield Heather Frankham (Relifed 10 November 2022) (Retired 10 November 2022) (Relifed 10 November 2022) (Apwinled 10 November 2022) (Apwinled 10 November 2022) IApp)inled 10 November 2022) Registored addross of the Charlty Merchants, Hall The Promenade Clifton Bristol BS8 3NH Charity Number.. 202152 Housing Association Number: A3603

The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Names and addresses of other relevant organisations Audltor KPMG LLP, 66 Queen Square. Bristol. BS1 48E Banker Nalwesl Bank plc, 32 Corn Street, Bristsl. BS99 7UG Soll¢hor Womble Bond Dickinson (UK) LLP, 3 Temple Quay, Temple Back East. Bristol. BS16DZ Investment Managers Evelyn Partners Inveslmenl Management LLP. Porthll Flace. Por￿1 Lane, Bristol. BS16NA (via the Merchant Venturers, Charities Inveslment Pwl IMVCIPI. Charity Number 1053459) COIF Charity Funds. CCLA Investment Management Ltd, 80 Cheapside. London. EC2V 6DZ Reference and administrative infomiation The Almshouses Charity is a Regislered Social Landlord {Homes & Community Agency number A36031 and a charily registered with the Charity Commission (charity registration number 2021521. The informalion with respect lo the Truslee, officers and advisers set out on page 1 forms part of this report. Structure. govemance and management Goveming document The Charity is constiluled under a Charily Commission Scheme daled 29 May 1985 a5 amended by a Scheme dated 8 May 1991, 2 May 1996 and 3 January 2017 and is a registered charity, number 202152. Goveming body and organisational management The Trustee of the Charity is SMV Trustee Company Limiled. 8 company limited by guarantee. All the members of the Society of Merchant Venturers. Standing Committee are Directors of SMV Trustee Company Limrted. The Trustee rneels lo consider. al least on a quarterly basis. the broad Slrategy. direclM)n an(J investment policy of the Charity. Assisting the Trustee are the C8re of Older People Sub Comfflillee, the Audit Sub-commillee. Ihe Investment Strategy Group. the FIna￿e and Investment SuWommittee and Ihe Conflicts of Inleresl Advisory Sub-commillee.

The Society of Merchant Venturers. Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Governing body and organisational management (continued) The Charity is 2 Registered Social Landlord and. under the supervision of the Trustee. is managed by the Care of Older People Sulhcommillee of the SOc￿ty of Merchant Venturers, the memtHs of which are.. Or Jwueline Comish (Chair) Caroline Duckworth Anne Nisbel Charles Densham M8ry Prior Charles Grrffilhs AnllK)ny Brown (Retired 27 January 20231 Edward Ware David Marsh Sir Jay Tidrnarsh IAppc¥nled 10 November 2022} The Sub£ommittee meets al leasl quartedy lo oversee and administer the efficient managementofthe Charity and lo consKJer ar￿ subsequently recommend and gain approval from the Tnjstee for broaj operational and Strateg￿ issues. The tenure ol membership is 3 years. re-dectaLle for 8 fijrther 3 years and, in special circUmstan￿s, tenu￿ can be extended. The indUCt￿n pr(ws for any newty appointed member includes an inrtial meeting and sile visits wlh Ihe Chaimian. The Confiicts of Interest Advisory Sub-commiltee (￿mpriseS of ts¥o individuals wth no c￿ne¢ll(￿ lo either SMV or SMV TCL w￿) can advise on areas where a confiict of interest might arise. As detailed in note 16. the so¢￿tY of Merchanl Venturers wovided adminisifalive serV￿S to the charities of which SMV TCL was trustee and las ￿M)Illed by Ihe Charity Commiss)n} made a charge for these. The Conflicts of Interest Advisory Sub-commillee has re¥￿ these charges and made a recommendation lo the board of SMV TCL that the Fyiosed char￿5 are, in the opinion of the members of the Sub£ommittee approprote. Accounb'ng SUPF¥)rt is rKovJed by the Merchant Venlurers. Finance department. Recruitment and training of the Trustee The Directors of SMV Truslee Company Limited are elected annually from wrthin the membership of the Society and are appraised of the general duties ofa Iruslee. In the event of S￿n￿lcan1 changes to legislation or best practice, further relevant training is undertaken. The management and stratègy of the Charity are considered in greater deiail by the Care of Older People sU￿0mmIttee. The members of this Sub- Committee bring with them the necessary financial. property and care skills that enable them lo deal both with more immediate issues as well as lo assess. monitor and make the necessary recommendations for the future Strategic dIr￿LI0n an¢Y well-beirwJ of the Charity.

The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Rlsk management In the light of the Corporate Governance guidance contained wilhin the Statement of Recommended Praclice 2019"Accounling and Reporting by Charitie5" Ihe Trustee examined Ihe major risks faced by the Charity. The Trustee continues lo monitor and manage ongoing risks relats.ng lo areas such as Ihe achievement of the charitsble objects and the protection of the charty'5 assets. Systems are In place lo monitor and control these risks to mitigate the impact that they may have on Ihe charity in the future. The Merchant Venture￿. Audit Commtitee is responsible for assessing Ihe $￿pe and effectiveness of the systems and processes established by managemelll lo Hdenlify. assess, manage and monitor the financial and non-financial risks. The risk register Is reviewed and updated as required and no less frequently than twice yearly by Management and by the Care of Older People Sub-committee. 11 is reviewed by the Merchant Venlurers. Audit Committee and is noted by the Trustee. The Charity is r￿￿nI on the income from its investrnents and on the income from residents to enable il lo provide accommodation in the fvrthwance of rt5 charitable objectives. The charity does however have reserves in significant excess of its annuat expenditure and therefore rf required il could meet expenditure from these reserves. Objectives and activities The Trustee confirms Ihal il has referred to the guidance contained in Ihe Charity Commission's general guidance on pU￿1C benefit when fevbewing the Charity's aims and objectives and in planning future aclivilies. Objects of the Charity The objects of the Charity. defined in the Chaty CommissK)n Scheme, whth should be referred lo for exact details. are-. 'To provide Amshouses for persons of wjd character who (except in S￿la7 cases lo be approved by the Charily Commission) are inhabitants of the Cty of Bristol.. During the year the Charity has continued to provide accommodation for older people in accordance with the terms of the Scheme via the 12 self-conlained accommodation unrts. Alms and intended impact The aim of the Charity is lo provide affordable. svilable and fil for purpose accommodation for persons of good character. The Trustee has given careful consideration lo the level of fees sel for the Almshouse and has adhered lo the legislation which prescribes a formula of Consumer Price Index ICPII + 1010. This enables residents lo meet their fees for rents wholly from Housing Benefit or Universal Credit (where they are eligible individuals}. Objectives for the year This year the focus has been ensuring that the Almshouse is operaled. equipped and maintained lo meet both current and future social housing requirerrbenls.

The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Strategles to achleve the objectives The future short and long-lerm maintenance needs of the Amshouse have been considered in the light of changing requirements of Ihe residenls. The Almshouse should receive suff￿lent investment lo meet expectations of future residents. Achievements and perfomiance Throughout the year the Almshouse has provided 12 flats lo those in need al social housing rates. Occupants of this close-knil community enjoy all the advantages of a historic building and setting bul located in an inner-city environment. The Trustee continues to monitor and maintain the building for the benefit of the residents and improve units. as they become vacant. Financial review The operating deficit for the year was1£580)12021= £23.188 surplus)- The slalemenl on page 12 shows a lolal comprehensive income deficil for Ihe year of1£407,835112021'. £364.079 surplus). The éecrease from 2021 10 2022 is largely due lo an unrealised loss in the value of inveslmenls lolalling {£488,426) (2021.. £193.943 unrealised gain). Investment policy and perfomiance The Trustee has delegated investment management to Ihe Merchanl Venturers, Finance and Investment Sub-commillee. including Ihe investment and performance of Ihe financial asseis.. the appointment of appropriate Fund Managers and rnoniloring their performance.. and lo recommend lo the Trustee optimum strategy for financial inveslmerit. The Merchant Venturers Finance and Investment Suwmmittee's policy is lo incxease income whilst ￿￿erVIng the real value of the investments. The Ir￿Me provkyes unrestr5Cted fvnds lo enable the Trustee to pursue the objects of the Chartty. indudiThJ plans for the future. The funds conlinue lo be invested in The Merchant Venturers, Chanties Investrnent I"MVCIP"I {Charity Number 1053459). The year ended 31 December 2022 vras a tumultuous year on almost every facet and financial markets were deeply affected. There was mulli-decade record inflation and centr81 banks responded with rapidly lightening monetary policy. Rising interest rates saw the correlation between bond5 and equities turn positive, conlribuling lo large declilles across most asset dasses. FuThJs flows diverted away from growth and momentum Strateg￿5. ar)d yield curves flallened. The lolal return of the investment portfolio in the year was a Ios5 of110.6Yol versus the MSCI PIMFA Balanced Index loss of {8.1%}12021.' gain of 10.31 % versus the PIMFA Conservalive Index benchmark gain of 6.890h). Reserves policy The Truslee aims as far as sy)ssible lo maintain years of resources expended in revenue reserve. Ai 31 Decemt*r 2022 the revenue reseNe was al £1.981.64312021.. 2,474,352). The revenue reserve also includes the proceeds of sale of Si Nichdas wilh Burton's Almshouse1£830,000} and Merchants. Alwnsh¢JJse1£620.0001 whth wll be used in the reprovision of new almshouse 3c£omodalion. The Extraordinary Repair Reserve of £332,092 8131 December 2022 12021". £363.5921 provides for major maintenance and repair of an extraordinary and irregular nalure. This policy is subject lo annual review. The Trustee transfers £1,230 into tlp Extraordinary Repair Reserve on an anThJaS basis.

The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Going concem The financial slalements have been prepared on a 9)ing concem basis wh￿h the Trustee coFisKlers lo be appropriate for the following reasons. The Trustee has prepared cash flow forecasts for a rEriod of 12 months from the dale of approval of these financial statements which indicate that, takiro account of reasonably ￿sSIble downsides, the charity will have sufficient funds lo meet ils IN4￿litieS as lttey fJl due for that peri¢JJ. The downside scenarios consKlwed by Ihe Trustee i￿ude a situalM)n where income is swJnffjir2nlly reduced. The Charity has current assets cor6iderably in excess of ils liabilil*s and, even with a significant fall in income. has SUff￿ent resources lo meet its I￿l¥ll￿S as they fau due througlmjut the f(wst period. Consequently. the Trustee is Ix)nfidenl thal the Charity will have sUff￿lent furKSs lo meet f(s IBbililies as Ihey fall due for al least 12 months from the dale of apwoval of the fina￿la1 statements th￿efOre has prepared the financial slalemenls on a going con￿rn basiq. Govemance and Flnanclal Vlabllity In accordance with t1￿ Accounlir¥J DireCt￿n for Privale Registered ProvKSers of Social Housing 2019, the Trustee ¢ertJfies compliance with Ihe governan￿ and financial y￿111ty standard. Future plans Following an acknowledgement of the need lo plan for and meet changing needs and expeclalions a strategic review of the future of Ihe Almshouses was conducted during 2016. 11 is planned to Use Ihe proceeds of the sale ol Mer¢banls' Almshouse in 2014 together with the proceeds of the sale in 2007 of Sl Nicholas with Burton's Almshouse. in the re-provision of new almshouse accommodation. During 2022 a further review of opwrtunilies within the area of benefit has been undertaken. In 2023 the Trustee will conlinue lo eX￿￿ore OPkKJrtunities to work in partnership with other Charities to achieve this aim.

The Society of Merchant Venturers. Almshouses Charity Report of the Trustee for the year ended 31 December 2022 (continued) Accounting and reporting responsibilities Statement of Trustee's responslbilitles In rospect of the Trusteo's Annual Report and th¢ finanGial statements Under charily law. the trustees are responsi1￿e for yeparing a Tnjstees, Annual Report and the financial Statements in accordance wlh applicable law and regulations. The Iruslees are required lo prepare the financial slalemenls in accordance wlh UK Accounting Slandar(Is, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial slalements are required by law lo gNe a true aThY fair view of the slate of affairs of th& charity and of the incoming resources and application of resources for that period. In preparing these finan(Mal slatemenls. generally accepted accounting practice entails that the iruslees.. select suitable accounting policies and then apply them consi81ently.' make jijdgements and eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standard5 and the Statement of Recommended Praclice have been followed, subject lo any rnaterial departLrres disclosed and explained in the financial slalemenls., slate whelher Ihe financial slatemenls comply wlh the trust deed. subject lo any material departures disclosed and explained in Ihe financial stalemenls". assess the charity 5 ability to continue as a gryng concern, disclosing, as applicable, matters related lo going coneern., and use the going concern bas15 of accounting unless they either intend lo liquidate Ihe charity or lo cease operations, or have no realistic alternative bul to do so. The Iruslee5 are required lo act in accordance wth Ihe trust deed of the charity. within the framework of trust law. They are responsible for keeping accounling records which are sufficienl to show and explain the charity's transactions disclose at any lime. with reasonable accuracy, the financial posilion of the charity al that lime, and lo enable Ihe Iruslees to ensure Ihal, where any statements of accounls are prepared by them under seclion 132{11 of the Charities Acl 2011, those slatemenls of accounts comply with the requirements of regulations under Ihal provision. They are responsible for such internal control as they determine is necessary lo enable the preparalion of financial sialemenls that are free from material rnisstalemenl. whether due lo fraud or error. and have general responsibility for taking such steps as are reasonably open lo them lo safeguard the assets of the charily and lo prevent and detect fraud and other irregularilies. The Iruslees are responsible for the maintenance and integrity of the financial and other information included on the charity'5 website. Legislation in the UK goveming the preparats.on and dissemination of financial statements may differ from legislalion in olher Ivrisdictions. Sign for and on behalf of the Trustee Patric Despard Director Merchanis. Hall, The Promeiiade, Clifton, Bristol, BS8 3NH Dale.. XÉ

Independent auditor's report to the Trustee of The Society of Merchant Venturers, Almshouses Charity Opinion We have audited the financial slalemenls of The Society of MeTchanl Venturers. Almshouses Charity {'Ihe ¢harily') for the year ended 31 December 2022 which comprise the stalemenl of financial aclivilies. balance sheet and related notes. including the accounting policies on pages 14 10 15. In our opinion the financial statements-. give a true and fair view of the slate of the charity's affairs as al 31 December 2022 and of its incoming resources and application of resources for the year then ended". have been properly prepared in accordance with UK accounting star￿ardS. including FRS 102 The Financial Reporting Standard applic8ble in the UK and Republic of Ireland: and have been properly prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We have been appointed as auditor under section 145 of the Charities Act 2011 {or ts p￿deCesS0r$) and report in accordance with regulalions made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing IUKI I'ISAS IUKI'I and applicable law. Our responsibilities a￿ deseribed below. We have fulfilled our ethical responsibilities under. and are independent of the ch8rily in accordance ￿th. UK ethical reqLJirements induding the FRC Ethical Standard. We believe that the audit evidence we have obtained is a Suff￿lent and appropriate basis for our opinion. Going collcern The trustees have prepared the financial statements on the going concem basis as they do not intend lo liquidate the charity or to cease ils operations. and as they have concluded th21 the charity s financial position means that this is realistic. They have also conduded that there are no material uncertainties that could have cast significant doubl over tts ability lo continue as a going concern for at least a year from the date of approval of the financial slalements 1.the going concem period')- In our evaluation of the Iruslees, conclusions. we considered the inherent risks to the charity's business model and analysed how those risks might affect the charity's financial resources or ability lo continue operations over the going concern perk)d. Our condusions based on this work= we consider that the Iruslees. use of the going concern ba515 of ￿counting in the preparation of the financial slalemenls is appropfiate.. we have not identified. and concur with the Iruslees. assessment that Ihere is not, a material uncerlaSnly related lo events or condition5 thal. individually or collectively. may cast significant doubl on the charity s ability lo continue as a wing concern for the going concern period. However, as we cannot predict all future evenls or conditions and as subsequent events may result in outcomes that are inconsislenl with judgements that were reasonable al the lime they were made, the above conclusions are not a guarantee that the charity wll continue in operation.

Independent auditor’s report to the Trustee of The Society of Merchant Venturers’ Almshouses Charity (continued)

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of management as to the charity’s high-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud.

• Reading Standing Committee, audit committee, and investment committee meeting minutes.

• Using analytical procedures to identify any unusual or unexpected year on year movements.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, and taking into account our overall knowledge of the control environment we performed procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries.

On this audit we did not identify a fraud risk related to revenue recognition due to the simple recognition criteria and limited scope for judgement. We therefore assessed that there was limited opportunity for management to manipulate the income that was reported.

We did not identify any additional fraud risks.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the fraud risk management controls.

We also performed procedures including:

• Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included unusual accounts combinations.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.

As the Charity is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including charities legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, employment law, and certain aspects of charity legislation recognising the financial and regulated nature of the Charity's activities and its legal form.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal

9

Independent auditor's report to the Trustee of The Society of Merchant Venturers, Almshouses Charlty (continued) co￿eSpOnden￿, rf any. Therefore rf a breach of operational regulatKJnS is not disclosed lo us or evident from relevant correspondence. an audit will not delecl that breach. Contexl of Ihe 8bilily of Ihe audit to detect fraud tx treaches of law or regUlat￿n Owing lo the inherent limitations of an audit. there is an unavoidable risk that we may not have delecled some material misslalemenls in the financial slalemenls, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial slatemenls, the less likely the inherenuy limited procedures required by auditing standards would identify ID addition. as with any audit, there remained a h￿her risk of non-deteclion of fraud. as these may invdve collusion, forgery, intentional omissions. misrepresentations, or the override of internal controls. Our audit procedU￿S are designed lo detect material misslalemenl. We are not responsible for preventing non- compliance or fraud and cannot be expected lo delecl non<ompliance with all laws and regulations. Other inforniation The Iruslee is responsible for the other infomalion. which comprises the Report of the Trustee. Our opinion on the financial slalemenls does not cover the other irbfomialion and, accordingly. we do not express an audit opinion or. except as eX￿1Cl11Y slated below. any form of assurance conclusion Ihereon. Our responsibilty is lo read Ihe other infomialion and. in doing so. consider whether, based on our financial stslemenls audit work, the infofmation therein is malerkglly misstated or In￿nSIStenI with the financial stslemenls or our audit knowledge. We are required lo report lo you rf.. based solely on that wth, we have identrfied malerial misstslements in the other infoTmation-. or in our opinion, the infomialion gNen in the Rep(Yt of the Trustees is incon5islenl in any malenal respect with Ihe financial sialements. We have nothing to rewrt in these respects. Matters on which we aro requirod to report by exceptlon Under the Charities Acl 2011 we are required lo repc￿l lo you rf. In our opinion.. the charity has not kept suffiaent accounting records. or the financial statements are not in agreement wth the accounting rec￿ls. or we have not received all the infomialion and explanations we ￿qUIre for our audit. We have nothing lo report in these respects. Trustoes, iesponslbS1itles As explained more fulty in their statement sel out on page 7. the trustees are responsible for.. the Preparation of financial statements which give a tnJe and fair view.- such internal control as they delermine is necessary lo enable the preparation of financial slalemenls that are free from material misslalemenl, whether due lo fraud or erfor." assessing the charity's ability lo continue as a going concern. disclosing. as applicable, mallers related to going concern", and using the going concem basis of accounting unless they either intend lo liquidate the charity or lo cease operations. or have no realistic altemative but lo do so. 10

Independent auditor's report to the Trustee of The Society of Merchant Venturers. Almshouses Charity (continued) Auditor's responsibilities Our objectives are lo obtain reasonable assurance about whether the financial slalemenls as a whole are free from material misstalemenl, whether due to fraud or error. and to issue our opinion in an auditor's report. Reasonable assurance is a high levd of assurance bul does not guarantee that an audit conducted in accordance with ISAS {UKI ￿11 always detect a material misslalemenl when il exists. Misslalernenls Ga arise from fraud or error and are considered material rf. indtvidually or in aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of the financial slalemenls. A fuller description of our reswnsibililies www.frc.o -ukJaudilorsres nsibilities. is provided on the FRC'S website al The purpose of our audlt work and to whom we owe oui responsibilities This report is made solely lo the charity's trustees as a body. in accordance with section 145 ofthe Charities Act 2011 lor ils predecessors) and regulations made under section 154 of that Act. Our audtt work has been undertaken so Ihal we might slate to the charity'5 tnjslees those mallers we are required lo slate lo them in an auditor's report and for ￿ other purpose. To the fullest exlenl permitted by law. we do not accept or assume responsibility to anyone other Ihan the charity and its tnjstees as a ly)dy. for our audit work. for this report, or for Ihe opinions we have formed. Johathan Brown for and on behalf of KPMG LLP. Statutory Auditor Chartered AGcounlants 66 Queen Square Bristol BS148E Dale-. 14 J￿.￿£ KLJ15 KPMG LLP is elwible to act as an audrf¢Y in lerms of sedKin 1212 of the Companies Acl 2006

The Society of Merchant Venturers, Almshouses Charity Statement of comprehensive income for the year ended 31 December 2022 Notes 2022 2021 Tumover Renial income 103,811 6.274 (18.669) 100,845 Services charges Less-. Rent losses from voids 6.080 112,427} Net conlribulK)n 91.416 94,498 41,037 Other rental income 44,350 135.766 135,535 Opèrating costs Services 56,896 42.619 16& 17 Management Routine maintenance 17,191 50.499 16,774 36,002 Depreciation 11.760 16,952 1136,3461 (5801 (112,3471 23.188 Operating ldeflcltysurplus Unrealised {lossygain on investmenls Unrealised Ilossllgain on investments of designated reserves Net revaluation (deficitllsurplus Inleresl receivable and other income (488.4261 793,943 10& 14 132.730 1521.1561 53.666 270.797 114,299 93,712 Inleresl payable and similar expenses 13981 14301 Total comprehensivg {deficitifiThcome for the year 1407,835) 364,079 The re$￿tS presented above relate thlly lo continuing actNities. There is no drfference bets•￿en the deficil on ordinary &tiviiies frx the year as slated atK)ve and their historical osl equivalents. The accofflpanying r￿leS fomi part of the financial stslemenls. 12

The Soclety of Merchant Venturers. Almshouses Charity Balance sheet at 31 December 2022 Notes 2022 2021 Fixed assats Housing properties Investments 11,760 1,140,381 1,152,141 1,514,273 1,514.273 Total fixed assets Current assets Debtors 36,886 1.688,777 34,991 Investments 1,946.295 Extraordinary repair ￿$￿e investments 10 332.092 363.592 Cash at bank and in hand 341,518 831,091 2,399,273 3.175.969 Creditors: amounts falling duo within on8 year Net current assets (21.961) 128,690} 2,377,312 3.891,585 3,147,279 Net assets 4.299.420 Capital and r8s•rv•$ Capital account Investment revaluation reserve 12 873.S76 268.776 13 704,274 1,192,700 Extraordinary repwr reserve Revenue reswve 14 332.092 1.981,643 363.S92 15 2,474,352 Total Capital and reserves 3.891.$85 4.299,420 The financial stslemenls on page5 12 to 22 were approved by ￿ Truslee on 2$ 3k>fyE 2¢Ji3￿d are signed on ils behalf by.. ick Despard ctor Michael Bothamloy Director Dir The accompanying notes form part of the financial statements. 13

The Soclety of Merchant Venturers, Almshouses Charity Principal accounting policies Prgsantatlon of flnancial statements The financial statements have been prepared in ￿dance with the historical cost convenlK)n as modified by revaluation of inveslmenis. They comply wilh the Stslemenl of Recommended Practi￿ for Accounling by Registered Social Landlords {SORP) (2018}, Ihe Financk41 ReFMXting Standard appiicatAe in the UK and Republic of Ireland IFRS102} a￿1 the Accwnting Drection Private Registered Providers of sou.al Housing 2019. The accounting p)liC￿S that the Charity has adopted to delennine the amunts included in respect of materia items shown in the balance sheet and also lo delemiine the in￿￿ne and expenditure have been applied consislenlly in the current aTrJ preceding year and we shoym beltrw. The Society of Merchant Venturers. Almshouses Charity meets the definIt￿n of a pviAic benefit entity under FRS 102. Assets and liabilities are Initial￿ recwised al histor￿al cost or transaclion value unless othe￿iSe staled in the relevant aecounling pdry. Basis of accountlng The financial slalemenls have been prepared under the hislorThl cosl Convent￿n. as modrfied by the revaluation of fixed asset inveslmenls. and in &eordance with the Statement of Recommended PraCt￿e 'Accounling and Rep(wtirvJ by charib.es {SORP 2019). appliCa￿e lo charilEs preparing their accounts in accordan￿ with Financial Rep￿.ng SlarKlard aPFAicable lo the UK arKJ Rewblic of Irdand {FRS 1021. Golng Concem The Trustee has (X)nS￿ered whettw use of going concern 15 appropriate. i.e. whether there are any material uncertainties rdaled lo evenls or Condi￿nS that may cast SWJnrf￿anI doubl on the ability of the char to continue as a g(Mng co[￿er￿. The Trustee mak&s this assessmenl for a ￿0d of ￿￿1ve months from the date of approval of the financial 51atemenls. Under all the scenarios revi￿￿, the charity has sufficienl reserves lo enable il to continue as a wing cortern for the foresèeable future. F[￿ this reason, il continues lo adopt the ￿Ing concem basis in preparing the financial statements. Critical accounling judg9rnents and kgy sources of gstimatlon uncertainty In ap￿Ying the charity's ￿lUnt]r￿J poliues. the Trustee is required lo make judgemenls, estimates and assumptions about ￿ carrying amounts of assets aThY liabilities that are not re&Jly apparent from other sources. Actual results may drffer from these estvmales. Turnover Turnover rep￿SentS rental income and Maintenan￿ (￿ntn"￿￿t￿S reeeivable. Al turnover 15 derived from operations in the Uniteé Kingdom. Expendlture Expendilure is accounted for on an accruals basis. inclusNe of irrecoverable VAT, and is recognised when there is a legal or conslruclive obligation lo pay for expenditure. Housing properti¢S The almshouse is slated al I￿gInal cost less acujmulaled depreciat￿. 14

The Society of Merchant Venturers. Almshouses Charity Principal accounting policies (continued) Fixed assets and depreciation Depreciation is charged so as lo vrrile off assets on a slr2ighl-line basi5 over the expe¢ted useful economic lives of the assets concemed. The annual rates used for thi5 purpose have been.. Freehold properties Building improvemenls Fixtures and fillings 10% 20% Land is not depfecialed. Assets wlh a cost of less than £l.000 are written off io expenditure during Ihe year. Investments Both current and fixed asset investments are staled al bid-market value in accordance with FRS102. The income and expenditure &count includes the nel gains 8r)d losses arising on revaluations and disposals during Ihe year. Extraordlnary repair reserve An amount is transferred annually from revenue lo this reserve to provide tr fflaior expenditure of an extraordinary nature (notes 10 and 14). The arwKMJnt so transferred is arthorBed by the Charity Commission. Apportionment order The apportionment order recoups capital expenditure on the renovab.on of the Sl Nicholas with Burton's Ajmshouses from 20 August 1996 10 27 October 1997 (note 121. Payment is made over 25 years by way of annual contributions pursuant of a Charity Commission order dated 2 May 1￿ and is invested in Ihe M￿chan1 Venturers, Charities Invesknenl Pod l-MVCIW} (Charity Number 10534591. Irrecoverable VAT Any irrecoverable VAT is charged lo the income and expenditure account or capilalised as parl of the cost of the related assel. where appropriate. Cash Ilow statement A slalemenl of cash flows has not been prepared as the charity ha5 taken advanlage of Ihe exemption available in the SORP for smaller charities. Taxation The Society of Merchant Venlurers. AlmsFK)uses Charity is registered as a charity and as such lax exemplion applies lo the income arising from and expended on charitable activities and lo ils investment income and gains. 15

The Society of Merchant Venturers. Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 Rental income from residents Wthin the rental income from residents ts £6.274 rdating to serv￿8 Char￿12021.. £6,080). Trustee's emoluments The Trustee did not recetve any emduments ￿ T￿Mbur$ement of expenses in restct of services during the year12021= nill, nor had any benef￿la1 interest in any contracl wilh the Charity during the year or in the prior year. Employee Information The Charty had no empk)yee5 in eilher 2021 or 2022. Hthvevw. a recharge is rrbade by the Society of Merchant Venturers and The Cole Charity as dtsc)sed wi notes 16 and 17. Interest receivable and other income 2022 2021 Snveslmenl income 114,013 93,566 146 Other income 286 114,299 93,712 Interest payable and similar charges 2022 2021 Bank interest and charges 398 430 398 430 16

The Society of Merchant Venturers. Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 (Deficit)Isurplus on ordinary activities 2022 2021 IDeficil}ISurplus on ordinary activities is slated after charging.. Audit fee 5.316 5.316 Depreciation on owned asset$ 11,760 16,952 The audit fee exduding irrerAjverat￿e VAT was £4.430 I￿22.. £4.430). Fixed assets- Almshouses Building improvements Flxtures and fittlngs Land and buildings Total Cost Al 1 January 2022 At 31 December 2022 164.744 265.287 26.522 456,553 164.744 265.287 26,522 456,553 Accurnulated depreGiation Al 1 January 2022 Charge for the year At 31 December 2022 154.179 265,287 25,327 444,793 10.565 1.195 11,760 164.744 265.287 26,522 456,553 Net book value At 31 December 2022 Al 31 December 2021 10.565 1,195 11,760 All properties are freehdd arKI hekl for the purwses of providing supp￿ed housing. Accumulated depreeialion indudes amounts histor￿lty disclosed as Social Housing Grant Y*ilhin the note, which relate back to deprecob.on of deemed cost exdudsng ganls re￿Ned the original recognition of the property.

The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 Investments Flxed assot investment 2022 2021 Market value Al 1 January Additions al cost 1,140,381 604.800 1230,9081 1.514.273 1,063,928 4.800 Revalualion 71.653 At 310ecernber 1.140.381 Historlcal ¢ost 86B,776 263.976 Current assot investment 2022 2021 Market value At 1 January Revaluation 1,946,295 {257,518) 1,688.777 1,824,005 122.290 At 31 December 1,946.295 Hlstorlcal cost 1,630.000 1,630,000 The funds continue lo be invested ￿ The Merchant Ven1w￿s, charit￿ Investmenl Pool I"MVCIP'I (Charity Number 1053459). The current asset investment represents the proceeds of sale of Si Nicholas ￿th Burton's in 2007 and the proceeds of sale of Merchants. Ajmshouse in 2014 arKI does r￿1 1￿M part of the endowment fund of the Charity. The Charty is actively l(x)king for Ihe best use of Ihese funds for new Amshouses lo meet its objectives. Variations in the market value of the ￿veStmentS we shrywn byway of movement in the inveslment revaluation reserve (see note 13). Debtors 2022 2021 Arnount$ falling due within one year. Rent 39 8.042 Other debl¢Ns 32.337 4,510 36.886 23,808 Prepaymenls and accnjed income 3.141 34,991 18

The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 10 Investments held on account of the extraordinary repair reserve The investments held on account of the extr*)rdinary repair reserve are held by COIF. Wrthdr8wals from the reserve musl be approved by the Trustee and income arisirwJ from the investments is accumulated in the reserve. The investments are stat&1 at the￿ fflarkel value on 31 Decemter 2022. Their hislorul eosl is £71,76412021: £70,534). 2022 2021 Market valuo Al 1 January Additions al cost 363,592 308.696 1,230 1,230 Revaluation lo market value {32.7301 332,092 53.666 At 31 December 363,592 11 Creditors: amounts falling due within one year 2022 2021 Other creditors 5.793 14,074 14.616 Accruals and defeffed income 16,168 21.961 28.690 19

The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 12 Capital account Al 1 January 2022 Transfer from income and expenditure account At 31 December 2022 268,776 604.800 873,576 The capital account and fixed asset investment revaluation rewve fomi the endowment fund of the Charity. A Iransfer from ircome and expendtture has been made under an apportK)nmenl order Isee accounting polic￿$1. 13 Investment revaluation reserve Current asset Flxed ass8t Investment Investment Total At 1 January 2022 Revaluation lo market value 316.295 876,405 1.192,700 (488,4261 704,274 (257.518) $8,777 1230,9081 645.497 At 31 December 2022 Movements on the investment revaluation reserve represent ehanges in the market value of the current and rixed asset inveslmenis held on acs)unt of the share of the Ctsrrty in the Merchant Venlurer5' Charities Inveslmenl Pool (see note 8). 20

The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 14 Extraordinary repair reserve Al 1 January 2021 Transfer from income and expendtiure account Investment revalualion for year Al 31 December 2022 363.592 1,230 {32.7301 332.092 15 Revenue reserve At 1 January 2022 Surplus on ordinary activities for year Transfer lo exlraordinary repair reserve Transfer to eapilal account At 31 December 2022 2.474.352 113.321 11,2301 1604,8001 1.981,643 16 Transactions with related parties Socioty of Merchant Venturers The Charity incurred a reall0cal￿n of Salar￿ and overh¥l costs of £13.CQ512021." £12.170) from the Soctely of Merchant Venturers, lo ￿er the s￿le£S il wovKJes in r￿at￿n lo the management and adminislr2lion of the Charity, of which £nil is oulslanding al Ihe year*nd (2021.. £nil). Mgr¢hant Venturers. Charftles Investmènt Pool {MVCIPI SMV Trustee Company Limited is the TnJstee of MVCIP aThY the ullimale controlling party of The Society of Merchant Venturers. Almshouses Charity. For details of investments held arKI income ￿ceiVed from investments in MVCIP. see notes 4 and 8. Al 31 December 2022 the charity was owed £nil by MVCIP {2021.' £nil). 17 Connected charlty The Cole Charity (Rwslered Charily Number 257237) is a connected charity under the definition of the Charities, SORP 2019 as it has related objects and the same Trustee as The Society of Merchant Venturers, Almshouses Charity. Further informalÈon can be obtained from the Charity's registered address detailed on page 1 of the Report of the Trustee. The Society of Merchant Venturers, Almshouses Charity incurred a charge of £9.796 {2021-. £4,604) for the services of the Almshouse Manager and the maintenance officer. Al 31 December 2022 £nil12021.. £nill was owed by The Society of Merchant Venturers, Almshouse Charity lo The Cole Charity relating lo these service5. The Cole Charily recharged The Society of Merchanl Venturers. Almshouse Charity for various seivices during the year including," the cost of a Chaplain of £1.054. the cosl of insurance and other sundry items al a cost of £6,22512021". £275 vrds recharged from The Society of Merchant Venturers. Almshouse Charity lo The Cole Charilyl. Al 31 Oecember 2022 £522 {2021.. £138 owed lo The Society of Merchant Venturers. Almshouse Charity) was outstanding. 21

The Society of Merchant Venturers. Almshouses Charity Notes to the financial statements for the year ended 31 December 2022 18 Owned l Managed units (Social Housing) Number of unlts as at 31 D8cembw 2022 The Charity owns 12 units for disadvanlw people of wFMch 8 have been fully occJJpied t￿ughOut the year 12021.. 9 fully Occup￿). Residents. rents Residents rents are set usir#J the legisla￿n whKh wescx'bes a fomiula of Corsumer Price Index {CPI) + 1%. Where necessary, all or part of the rent can be redaimed. From 1 Ar￿"12022 rent for the Amshouse was £174.32 per week. The charging of rents pmduced a contribution nei of vcmds over the year of £85.14212021= £94,498). 22