Homes & Comrnunlty Agency Registered Numbor.. A3603 Charity Registered Number: 202152 The Society of Merchant Venturers, Almshouses Charity Annual report and financial statements for the year ended 31 December 2023
The Society of Merchant Venturers, Almshouses Charity Annual report and financial statements for the year ended 31 December 2023 Contents Page Reporl of the Trustee Independent auditor's report to the Trustee of The Society of Merchant Venturers. Almshouse Charity Statement of comprehensive income Balance sheet 12 13 Principal accounting polieies Notes to the financial slalemenls 14 16
The Society of Merchant Venturers. Almshouses Charity Report of the Trustee for the year ended 31 December 2023 The Trustee presents its annual r@port and th8 audited financial statements for the year ended 31 December 2023. These financial slalemenls have been prepared in accordance with the Trust deed. the Slalement of Recommended Practice "Accounting by Regislered Social Landlords- lupdated 2019). the Accounting Direction for Private Registered Providers of Social Housing 2019 and FRS 102. Trustee, offiGers and advisers The Truslee of the Charity is SMV Trustee Company Limited. Listed below are those rnembers who have served on ihe Board of SMV Tnjslee Company Limited during the year.. Michael Bothamley Robert Boum5 Jonalhon Baker Patrick Despard David Freed Gillian Camm Ross Anc811 Martin Thatcher Dr Steve Allpress Nick Baker Karl Tuck Katharine Finn David Powell Mark Burchfieks Heather Frankham Professor Sir Steven Wesl Laura Marshall Tracey Killen (Relwed 10 November 20231 {Relired 10 November 20231 (Retired 10 November 20231 (Apwinted 10 knember 2023) {ApFoinled 10 November 2023) {ApFKsinted 10 November 2023) Reglstered address of the Charity Merchanis. Hall The Promenade Clifton Bristol BS8 3NH Charlty Number-. 202152 Houslng Assoclatlon Number: A3e(13
The Society of Merchant Venturers. Almshouses Charity Report of the Trustee for the year ended 31 December 2023 (continued) Names and addresses of other relevant organisations Auditor Bishop FlemiNJ. 10 Temple Back. Bristol. BS1 6FL Banker Nalwesl Bank plc. 32 Com Street. Brisld. BS99 7UG Solicitor wom1e Bond Dickinson (UK) LLP. 3 Temple Quay, Temple Back Easl. Bristol. BS1 6DZ Investment Managers Evelyn Partrws Investment Managewnenl LLP. Portsvall Place, P(thall Lane, Bristol, BS16NA (via the Merchant Venturers, Charities Inveslmenl Pwl {MVCIP). Charity Number 1053459} COIF Charity Funds. CCLA Inveslrnenl Management Ltd, 80 Cheapside, London. EC2V 6DZ Reference and administrative infonnation The Almshouses Charity is a Registered S181 LandliKd (Homes & Community Agency number A36031 and a charity registered with the Charity CommissH)n (charity regislralion number 2021521. The information wlh respect lo the Trustee. officers and advisers sel out on page 1 forms part of this report. Structure, governance and management Goveming documènt The Charity is consliluted urKler a Charity Commission Scheme dated 29 May 1985 as amended by a Scheme dated 8 May 1991. 2 May 1996 and 3 January 2017 and is a registered charity. numb8r 202152. Governlng body and organisational management The Trustee of the Charity is SMV Trustee Company Limited. a company limited by guarantee. Al the members of the Society of Merchant Venturers. Standing Committee are Directors of SMV Tnjstee Company Limited. The Trustee meets lo consider. al least on a quarterly basis, the broad strategy. direction and investment policy of the Charity. Assisting the Tnjslee are the Care of Older People Sub Committee, the Audit Sub-commillee. the Inveslmenl Strategy Group. the Finance and Investment sUcOmMIttee and the Conflicts of Interest Advisory Sub-commillee.
The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2023 (continued) Governing body and organisational management (continued) The Charity IS 8 Registered Sccd Landlord and, under the superviSn oftheTrustee. is managed by the Care of Older Peop Sub-committee oflhe SOcty of Merchant Venturers, the members of which are.. Dr J&queline Cornish {Ch8ir} Caroline Duckworth Anne Nisbet (Resigned 10 November 20231 Charles Densham (Resigned 10 November 2023) Mary Prior (Resigned 10 Novemb& 2023) Charfes Griffiths Anthony Br (Retired 27 January 2023> Edward Ware David Marsh Sir Jay Tmlmarsh Chri5 Pallerson (Apwinled 10 November 20231 David Freed (Apwnled 10 November 20231 Helen Curr¢e (Appointed 10 November 2023) The Sub-commiilee meets at Eea51 quartertyto oversee and administer the efficEnl Manament oflhe Charity and lo consider and subsequenlly recommend arKI gain approval from the Trustee for broad operational and strategic issues. The [enU of membership is 3 years, rtrelectable for a further 3 years and, in special circumstances. tenure can be extended. The iThlucb FxcKess for ary appM)inted member indudes an initsal meeting and site visits with the Chairman. The Confiicls of Inleresl Adviscwy Sub£ommittee comprises of indwK4uals with no cOnrctn lo either SMV or SMV TCL who can advise on areas where a Confl of interest might arise. As detailed in note 16. Ihe Society of Merchant Venturers provided ministrative servi5 to the charities of which SMV TCL was Iruslee aThY (as pem)itted by the Charity Commission) made a charge for these. The Conflds of Interest Advisory Sub-commitiee has reviewed ihese d)arges arKI made a rmmendation lo Ihe board of SMV TCL that proposed chaw are. in the opinKsn of the fflembers of the SutFCommillee approwiale. Accounting support is provKled by the Scxiety of Merchant Venlurets. Finan department. Recruitment and tralning of the Trustee The Directors of SMV Truslee Company Limited are elected annually from within the membership of the Society and are appraised of the general duties of a Iruslee. In the event of significant changes lo legislalion or best praelice, further relevant training is undertaken. The management and strategy of the Charity are considered in greater detail by the Care of Older People Sub-commillee. The members of Ihis Sub- Committee bring with them the necessary financial. property and care skills that enable them lo deal both with more immediate issues as wdl as lo assess. monrtor arKI make the necessary recommendations for the future slralegic direction and well-being of the Charity.
The Society of Merchant Venturers. Almshouses Charity Report of the Trustee for the year ended 31 December 2023 (continued) Risk management In the light of the Corporale Govwnance guidance contained wrthin the Statement of Remmmended Practice 2019"Accounling and Reporting by Charities". the Trustee examined the major risks faced by the Charity. The Tnjslee continues lo monitor and manage ongoing risks relating lo areas such as the achievement of the charitable objects and the Pfoteclion of the charity's assets. Systems are in place to monitor and control these risks to mitigate the impact that they may have on the charity in the future. The Merchanl Venture. Audit Committee is responsible for assessing the swe and effectiveness of the systems and processes established by management lo Kjerntrfy, 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-commttlee. 11 is reviewed by the Merchant Venturers. Audit Committee and is noted by the Trustee. The Charity is relk3nl on the income from its inveslmenls and on the income from residents lo enable il lo provide accommodation in the fvrtheran of ils charit2tAe objectNes. The charity does however have reserves in significant excess of rts annu expenditure and theref(e rf required il coijld meet expenditure from these reserves. Objectives and activities The Trustee confirms that il has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity s aims and objectives and in planning future aclivilies. Objects of the Charity The objects of the Chty. defined in Ihe Chanty Commisston SdEme, whith should be referred lo for exact details, are.. 'To provide Almshouses for persons of charter who (except in special cases to be approved by the Charity Commission) are inhabrtants of the City of Bristol.- During the year the Charity has continued lo provide accommodation for older people in accordance with the terms of the Scheme via the 12 $eW-contained aCcoMm(MJatn units. Aims and intended impact The aim of the Charity is to provide affordable. suilable and fil for purpose accommodation for persons of good character. The Trustee has given careful consideration lo the level of fees sel for the Almshouse and has adhered lo the legislatson which presuibes a formula of Consumer Price Index {CPII + 1°/0. This enables re$entS lo meet their fees for rents WhlY from Housing Benefit or Universal Credit (where they are eligible individuals). Objectlves for the year This year the focus has been ensuring that the Almshouse is operated, equipped and maintained lo meet both current and future social housing quIrements.
The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2023 (continued) Strategies to achieve the objectives The future short a1 long-lerm maintenance needs of the Almshouse have been considered in the light of changing requirements of the residents. The Almshouse should receive sufficient investment to meet expectslions of future residents. Achievements and performance Throughout the year the Amshouse has provided 12 flat5 to 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-cily environment. The Trustee continues to mnitor and maintain the building for the benefit of the residents and improve units. as they become vacant. Financial review The operating surplus for the year was £32.824 {2022.' £580 deficit). The statement on page 12 shows a lolal comprehensive income for the year of £220,24812022-. £407.835 deficit). The increase from 2022 10 2023 is due lo increased rental and investment income. alongside unrealised gain in the market value of invesknents in 2023 compared to an unrealised loss in 2022. Investment pollcy and perforniance The Trustee has delegated investment management lo Ihe Merchant Venturers. Finance and Investment Sub-commillee, including the investmenl and performance of the financial assets.. the appointment of appropriate Fund Managers and monitoring their perfomiance.. a1 lo recommend to the Trustee optimum strategy for financial investment. The Merchant Venturers Finance and Inv&8lment Sutkcommiliee's wlicy is to increase income whilst preserving the real value of the investments. The income provkyes unrestricted funds lo enae the Trustee lo pursue the ob]"ecis of the Charty. induding plans for the future. The funds continue to be invested in The Merchant Venturers. Charities Investment Pool {"MVCIP'I (Charity Number 10534591. During 2023 a lug of war behveen inflation and inleresl rates played out across conlinenls. Many central banks had the delicate task of curbing inflation without il slrfling the economy. The UK grappled with sticky inflation. and this posed challenges lo both consumers and policymakers. Al the start of Ihe year Consumer Price Inflation ICPII hil a record 10.7¥. by October il had declined lo 4.6Qk bul il remained higher than the US13.2%1 and the eurozone {2.9Yol. 2023 saw the lowest percenta of slocks outperforming the index oveT the past 25 years, with the 'Magnificenl Seven. driving equf(y returns in 2023 with returns dwarfing the US and International market returns. Developed equity valualions {led by the US markell are close again to previous peaks. The total return of the inve$lmenl portfolio in the year was a gain of 5.05% versus the benchmark of 10.38% 12022.. loss of 10.6% versus the benchmark loss of 8.1 %). Reserves policy The Trustee aims as far as possible lo maintain tsvo yews of resources expended in the revenue reserve. Al 31 Dernber 2023 the revenue reserve was al £2.141.21012022". £1,981.643). The revenue reserve also includes the t(d$ of sale of St Nicholas with Burton's Almshouse1£830.0001 and Merchants, Amshouse (£620.fXJO) whh wll be used for reprovisN)n. The Extraordinary Repair Reserve of £374,404 at 31 Dmber 2023 12022.. £332,092> provides for malc Maintenan and Tepair of an extraordinary arKI irregular nature. This polw is subject to annual review. The Trustee transfers £1,230 into the Extraordinary Repair Reserve on an annual basis.
The Society of Merchant Venturers, Almshouses Charity Report of the Trustee for the year ended 31 December 2023 (continued) Golng conc•rn The financia slalements have been prepared on a Ing coeM basis whh the Trustee COn5KJers lo be appropriate for the followrKJ rOnS. The Trustee has prepared cash flow forecasts for a per of 12 months from the date of approval of these financial slalements whh indale that. tsknng accounl of reasonabty kwible downsides. the charity wll have Sten1 funds to meel rts Ikqbilities as they f1 due for that pericmj. The downside scenarios consKSered by the Trustee iude a situalion whwe COrne is signfficanlly reduced. The Charity has current assets considerabty in excess of its llabililies and. even with a signffjicant fall in income, has sufficient resrGe$ lo meet its liabrfilies as they fall due tIWjgh0Ul the forecast period. Consequenuy, the Trustee is confKlenl Ihal Charity will have SLrfficienl funds lo meet rts liabili(ies as they fall due for at least 12 monlhs from the dale of approval of the finatKial sialements and therefore has prepared the financial slalements on a going corwn basis. Govemance and Flnancial Wiability In accoTdance with the Accounting Direction for Privale Registered Providers of Social Housing 2019. the Trustee certifies compliance wilh the govemance financk41 viability standard. Future plans Following an acknedgeMent of the need lo plan for and meet changing needs and expeclalions a strategic review of the future of the Amshouses was conducted during 2023. 1115 planned to use the proceeds of the sale of Merchants. Almshouse in 2014 together with the proceeds of the sale in 2007 of St Nicholas wlh Bvrlon's Almshouse, in the re-proviston of new almshouse accommodation. During 2023 a further reVW of opportunities wthin the area of benefit has been undertaken. In 2024 the Trustee will continue lo explore opportunit$ to 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 2023 (continued) Accounting and reporting responsibillties Statemgnt of Trustee's responslbilitlos In respect of tho Trustee's Annual Rèport and the financlal statements Under charity law. the Iruslees are responsible for preparing a Trustees. Annual Report and the financial 5talemenls in accordance with appluble law and regulations. The Iruslees are required lo wepare the financial statemen15 in accordance with UK Accounling Sndards. including FRS 102 The Fina181 Reporting Standard appIlble in the UK and Republic oflrgland. The financial slalemenls are required by law lo give a tnJe and fair view of the stale of affairs of the charity and of the incoming resources and application of resources for that period. In preparing these financial slaternenls. generally accepted accounting practu entails Ihal the Iruslees.. select suitable accounting policies and then apply them con51slently'. make judgements 2nd estimates that are reasonable and prudent., slate whether applicable UK Accounting Standard5 and the Slalement of Recommended Practice have be8n followed, subject lo any material departures disdosed ar)d explained in the financial statements., stale whether Ihe financial statements comply with the trust deed. subject lo any material departures disdosed and explained in the financial slalemenls: assess the charity's ability to continue as a going concwn, disclosing. as applicable, mallers related lo going concern," and use the going concem basis of accounting unles5 they either intend to liquidate the charity or lo cease operations, or have no realistic allemalive but lo do so. The trustees are required lo ael in accordance with the trust deed of the charity, wlhin the framework of trust law. They are responsible for keeping accounting records which are sufficient lo show and explain the charity's transactions and disclose at any lime. with reasonable accuracy, the financial posilion of the charity al that lime, and lo enable the trLTrStees lo ensu that. where any statements of accounts are prepared by them under section 13211 } of the Charities Act 2011, those statements of accounts comply with the requirements of regulathons under that provision. They are responsible for such internal control as they determine is necessary lo enable the preparation of financial stalemenls Ihal are free from material misslalement, whether due lo fraud or eOr. and have general responsibility for taking SLJch steps as are reasonably open lo Ihem lo safeguard the assets of the charity and to prevent and detect fraud and other irregularities. The Irtjslees are responSie for the maintenance and integrity of the financi81 and other information included on the charity's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictK)ns. Slgned for and on behalf of the Trust M Bothamley Director Mercljants, H*ll. The Promenide. Clifion. Brisiol. 3NH Dale.. 1 2014
Independent Auditor's Report to the Trustee of The Society of Merchant Venturers, Almshouses Charity Opinion We have audited the financial statements of The Sc¢iety of Merchant Venturers. Almshouses Charity {"the harily'l for the year ended 31 December 2023 which comprise the Slalemenl of Financial Activitie5. Balance Sheet and notes lo the finanaal slalements. induding ¥ignrficant aCCnI1g policbes. In our opinion the financial slalemenls-. give a true and fair view of the stale of the charily's affairs as al 31 December 2023 and of ts incoming resources and application of resources for the year then ended- have been properly prepared in accordance with UK COunting Standards. including FRS 102 The Financial Reping Standard appllcable in the UK and Republic of Ireland", and have been properly prepared in accordance wilh the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with International Siandards on Audiling IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in Ihe Auditor's responsibilities for the audit of the finanal statements section of our reporl_ We are independent of the charity in accordan with the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK. induding the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requir[ben1S. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for tyjr opinion. ConGlusions ralating to going Concern In auditing the financial slalemenls. we have concluded that the Trustee's Use of the going fA)ncern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not tden11fd any material uncertainties relating to events or conditions that. individually or collectively. may casl significant doubt on the charity 5 ability lo continue as a going concern for a period of al least iwelve months from when the financial statements are authorised for issue. Our responsibilities and Ihe responsibilities of the Tnjslee with respect to going concem are described in the Televanl sections of this report. Other information The other information comprises the information induded in the Trustee's annual report, other than the financial slatemenls an(J our audilor's report Ihereon. The Trustee is responsible for the other infomialion onlained wrthin the report. Our opinion on the financial slalemenls does not cover the other infomialion and, except lo the exlenl otherwise explicilly sialed in our report. we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomation and, in doing so. consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the coursè of the audit or otherwise appears lo be materially misstated. If we idenltfy such material ineonsislencies or apparent material misslalemenls. we are required lo determine whether this gives rise lo a m21erial misslatemenl in the financial slalemenls themselves. If. based on the work we have performed, we condude that there is a material misstatefflenl of this other information. we are required lo reIrl that fact. We have nothing to repom in this regard.
Independent auditor's report to the Trustee of The Society of Merchant Venturers. Almshouses Charity (continued) Matters on whl¢h we are required to report by oxception We have nothing lo report in respect of the following matters in relation to which the Charitieg {Accounls and Reports) Re9ulalions 2008 require us to report lo you rf. in our opinion= the information given in the financial statements in¢onsislenl in any material respect wilh the Trustee's report.. or the charity has nol kept adequale accounting records.. or the financi81 statements are not in agreement wth the accounting records and returns., or we have not received all the information a1 explanations we require for our audit. Responsibiliti8s of th8 Trustoe As extdained more fully in the Trustee's responsibilities statement. the Trustee 15 responsible for the preparation of financial slalemenls which give a true and fair view. and for such internal control as the Trustee determines is necessary lo enable the preparalion of financial statements that are free fro material misslatemenl, whether due lo fraud or error. In preparing the financial slatemenls, the Trustee is responsible for assessing the charity's ability to continue as a going concern. disclosing, as applicable. matters related lo going concern and using the going concem basis of accounting unless the Tru51ee either intends to liqvidale the charity or lo cease operations. or have no realistic altematrve but to do so. Audltor's responsibilities for the audit of the financial staternents We have been appointed as auditor under section 144 of the Charities Acl 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but 15 not a guarantee that an audit conducted in accordance with ISAS {UK} will always detect a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material rf. Individual or in the aggregate. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalements. Irregularities, including fraud. are instances of rn-CoMl8nce with laws and regUlatn$. We design procedures in line with our respon5ibiltties. outlined above. to delecl material misststemenls in respect of Irgu1a[lts, including fraud. The exlenl lo which our procedures are capable of delecling irregularilies, including fraud is delailed below. In idenlrfying and assessing risks of material misslatemenl in respect of irregularities. induding fraud and non-compliance with laws and regulations. we considered the following.. the nature of the sector, contrd environment and the charity's perfomiance." results of our enquiries of managemenl and the Trustee Board. induding the (x)mfflillees charged with governance over the charity's finance and contrLrf. aLhJul their own identification and assessment of the risks of irregularities-. any mallers we identified having obtained and reviewed the charity's documentation oflheir policies and procedures relating to. identrfying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-Com&1anCe." delecling and responding lo the risks of fraud and whelher they have knOedge of any aclual. suspected or alleged fraud," the internal controls estsblished to miligale risks of fraud or noncompliance with laws and regulations",
Independent auditor's report to the Trustee of The Society of Merchant Venturers, Almshouses Charity (continued) As a result of these procedures, we considwed the opportunrties and incenlNes that may exist within the organisalion for fraud, which induded incorrect recognition of revenue. management override of controls Using manual journal entries. We identified the gatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries. In common with all audits under ISAS {UKI. we are also required lo perform specrfic procedures lo respond lo the risk of management override. We also obtained an urbderslanding ol the legal and regulatory frameworks that the charity operates in. focusing on provisions of Ihose laws and regulations that had a direct effect on the delerminalion of material afflounts and disdosures in the financial statements. The key laws and regulations we considered in this context included the Charities Acl 2011 and tax legislation. In addition. we considered provisions of other laws and regulations that do not have a direct effeel on the financial slalewnenls bul compliae with whth may be fundamental lo the charity's ability lo operate or lo avoid 8 material penalty. Our procedures to respond to risks identrfied included the followng.. reviewing the financial statement discfosures and testing lo supporting documentation lo assess compliance wrth provisions of relevant laws and regulations described as having a direct effect on the financial statements-. reviewing the financial slatemenl disclosures and testing lo supporting d(Mentation lo assess the recognitn of income.. enquiring of the Trustee an(J management and those charged with WYernan concerning actual and potential liluation and claims-. performing procedures lo confirm material Compliance with the requirements of ils regulators,. performing analytical procedures lo idenlfy any unusual or unexpected relationships that may indicate risks of material misstslemenl due lo fraud." reading minutes of meetings of those charged with g0vemare and reviewing internal control reports,. and in addressing the risk of fraud Ihrough management overrKle of controls. testing the appropriatenes5 of journal entries and other adjustments", and assessing whether the judgements made in making accounting eslimales are indicalNe of a potential bias. Vve also communicaled relevant idenltfied laws an(J regulalions potential fraud risks lo all engagement team members, and remained alert to any indications of fraud or rK)n-compliance with laws and regulations throughout the audit. Our audit prwedures were destgned to fespond lo risks of malerral mis5talement in the financial slalemenls, recognising that the risk of not detecting a material misslalemenl due lo fraud is higher than the risk of not dete¢ling one resulting from an error. as fraud may Involve deliberate concealment by. for example, forgery. misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions Ieftecled in the finawal statemen15. the less likely we would become aware of it. A further desuiplion of our reSnSIbIlitieS is available on the FRC'S websrte at.. hll s'.Ilwww.frc.or .ukfflibra Islandards-codes- lic lau(iil-assuonce-and4lhicslaudilors-res onsibililies- for-Ihe-audiU. This description fomis part of our auditor's rewrt. 10
Independent auditor's report to the Trustee of The Society of Merchant Venturers, Almshouses Charlty {contlnued) Use of our report This report is made solely lo Ihe charl$ Truslee. as a ty. in accordance with Part 4 of the Charities (Accounls Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charily's Trustee those mallers we afe required lo slate to them in an audilorfs report and for no other purFK)se. To the fullest extent pemiitted by law. we do not a¢cepl or assume respon5ibilily lo anyone olher than the charity and the charity's Trustee as a body. f our audit work, for this report, or for the opinions we have formed. ckn< Chrls Trantham FCA Isenior Statutory Audhorl For and on behalf of Bishop Fleming LLP Chartered Accounlanls Sialulory Auditors 10 Temple Back Bristol 8S1 6FL Dale.. k .TLIL% loA* Bishop Fleming LLP is eligible lo act as an auditor in temis of section 1212 of the Companies Act 2006
The Society of Merchant Venturers, Almshouses Charity Statement of comprehensive income for the year ended 31 December 2023 Notes 2023 2022 Turnovor Rental income 110,934 S,810 120.528) 103.811 Service5 charges Less.. Rent losses from voids 6.274 {18,669) Nel contribution %,216 62.538 91,416 Other rental income 44.350 158.754 135.766 Operatlng ¢OSts Swvlces 52.926 56,896 16& 17 Management Routine maintenance 18,793 54.211 17,191 50,499 11,760 Oeprecialion (125.930) 32.824 1136.3461 15801 Opgrating surplusl{deficlt} Unrealised gainllloss) on investments Unrealised gainl(loss) on investments of designated reserves Net revaluation surplusl{deficit) Interest receivable and other income 18,369 {488,4261 10& 14 41.082 {32.7301 {521,1561 59.451 128.588 114,299 Interest payable and similar expenses 1615) {398) Tolal comprehensive incom91{dofi¢itl for thg yoar 220.248 1407,8351 The results rKesenled above relate wlM)Hy to (x)nliwir¥J tivrt. The is no difference between the def11 on (ffdinary aclwilies for Ihe yew as slated above and their hisCal cost equivalents. The accompanying notes fomi part of rinancia slatemenls. 12
The Society of Merchant Venturers, Almshouses Charity Balance sheet at 31 December 2023 Noles 2023 2022 Flxed assets Housing propeAies Investments 1,969 1,522,957 1,524,926 1,514,273 Total fixed assets 1.514.273 Current assets Debtors 58.019 36.886 Investments 1.698.462 1,688.777 Extraordinary repair reSe investments 10 374.404 332.092 Cash at bank and in hand 487.933 341.518 2.618.818 2.399.273 Credltors: amounts falllng due wlthln one year Net current as$et$ 11 131.9111 (21,961) 2.586,907 2.377.312 N8t assets 4.111.833 3.891.585 Capital and reserves Capital account Investment valUation reserve 873,576 873.576 13 722,643 374,404 2,141.210 704.274 Exlracffdinary repair reserve Revenue resefve 14 332.092 15 1,981.643 Tolal capital and reseples 4.111.833 3,891,585 The financial slalemenls on pages 12 10 22 V•we approved by the Trustee on y Ic4land are signed on ils behalf by- 14kn_4 AIGg- Mlchael Bothamley Oirector Robert 8ourn$ Director The accompanying note5 fomi part of the financk41 slatemenls. 13
The Society of Merchant Venturers, Almshouses Charity Principal accounting policies Presentation of financial statements The financial slalemenls have been Fwared in accordance wrth historical cost convention as modified by (he revaluation of inveslmerrts. They comF4y the Slalemenl of Recomwnended Practice for Accounting by Registered Social Land1cdS {SORPI 12018). the Finanual Retxxting Standard apt4icable in the UK and RepU1C of Ireland IFRS102) the Accn'rj DireCn for PrNale Registered Providers of Social Housing 2019 Th8 accounlirvJ poleS that the Ch&ity has adopted to deterMIr the am¢JJnls indLMJed in respect of material items shown in Ihe balan sheel aThY also lo delemiine Ihe Irome and expenditure have been apie consistently in current aTrY preceding year and e 0w. The Society of Merchant Venturers, Almshouses Charity meets the definilKsn of a put4ic benefit entity under FRS 102. Assets and liabililies are irwlialy recoJntsed al hi8torica cost or transaction vaue unless otherwise slated in the rdevanl accounting pdry. Basls of accountlng The financial slalemenls have been wepared under the historica cost Conventn. as modrfied by the revaluation of fixed asset inveslmenls, and in acc(Ydance wlh the Statement of Recommended Practice "Accounting and Reportiro by Charities ISORP 2019)" appIab lo chaT11$ weparing their accounts in accordance wlh Financial ReFX)rbrvJ Stsndard aAable lo the UK and Republic of Irdand (FRS 102). Going Concern The Truslee has considere(J the use of g)iNJ cx)ncem is appropriate. i.e. whether there are any material uncertainlEs related lo evenls condthns that may cast significant doubl on the ability of the charity lo conlinue as a going concern. The Truslee makes this assessment for a period of twelve months from the dale of apyoval of the financia statements. Under all the scenarios revi&ved, charity has sufficienl reswves lo enable il to contliue as a g)ing concern for the foresee3te fijlure. For this reason. it continues lo adopt the g)ing concem basis in preparing the finanaal statements. Critical accounting judgqmgnts and k•y sour¢es of estimation uncertainty In applying the chanty's accounting w91les. the Trustee ts requtred to make judgements, eslimales and assumpbons about the carrying amounts of assets and liabilits that are not reayly apparent from other sources. Actual results may drffer from these eslimates. Turnover Tumover represents rental income afKI mainlenae (£tribut)n$ reCeIvae. All lumover ¢5 derived from operations in the Uniled Kin10m. ExpeDdlture Expenditure 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 properties The almshouse is staled at origina cost less accJJmulated deprlatI)n. 14
The Society of Merchant Venturers, Almshouses Charity Principal accounting policies (continued) Fixad assets and depreciation Depreciation is charged so as lo write off assets on a slraighl-line basis over the expected useful economic lives of the assets concerned. The annual rates used for this purpose have been.. Freehold properties Building improvements Fixtures and fillings 10% 20% Land is not ¢Yeprecialed. Assets with a cost of less than £1,0(M) are written off lo expenditure during the year. Investments Both current and lixed asset investments are slated al bKI-market value in accordance with FRS102. The income and expenditure account indudes the nel gains and k)sses arising on r8valualions and disposals during the year. Extraordinary repair rer¥e An amount is transferred annually from revenue lo this reserve to provhle major expenditure of an extraordinary nature Inoles 10 and 14). The amount so transfeTred is authorised by the Charity Commission. Apportionment order The apportionment order recoups capital expenditu on the renovation of the St Nicholas with Burton's Almshouses from 20 August 1996 10 27 October 1997 {r¥)le 12). Payment was made over 25 years by way of annual contributions pursuant ofa Charity ComMissn orderdated 2 May 1996 and is invested in the Merchant Venturers. Charth'es Invesfftnl Pocl I"MVCIVI {Charity Number 10534591. Irrecovefable VAT Any irrecoverable VAT is charged lo the income and expenditure a¢¢ouni or capitalised as parl of the cost of the related asset. where appropriate. Cash flow staternent A slalemenl of cash flows has nol been prepared as the charity has laken advantage of the exemption available in the SORP for smaller charilies. Taxallon The Society of Merchanl Venturers. Amshouses Charity is registered as a charity and as such lax exemption applies lo the income arising from and expended on charitable activilS and lo its investment income and gains. 15
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 Rental income from residents Wrthin the rental inccme from reswjents is £5,810 relating to Serv charges12022: £6,274). Trustee's emoluments The Trustee did ml r1ve any emolumerts LY raMrSeMent of expenses in restd of servKes during the year12022'. nil}. n¢x had any beneficia interest in any contract wilh the Charity durirKJ Ihe year or in the prv)r year. Employee informatlon The Charity had no employees in ether 2022 or 2023. H¢yNever. a recharge is m*Je by the Society of Merchant Venlurers and The Cote Charty as disclosed in notes 16 and 17. Interest receivable and other income 2023 2022 Investment income 124.545 4,043 128,588 114.013 Other income 286 114,299 Interest payable and similar charges 2023 2022 Bank interest and charges 615 398 615 398 16
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 (Deficit)Isurplus on ordinary activities 2023 2022 {DeficilllSurplus on ordinary activities is slated after charging.. Audit fee 7.396 5.316 Depreciation on owned assets 11.760 The audit fee exduding vecovwable VAT was £6.163 (2022: £4.4301. Fixed assets - Almshouses Building improvements Fixtures and flttlngs Land and bullding8 Total Cost At 1 January 2023 Additions 164.744 265,287 26,522 456.553 1.969 At 310ecember 2023 164,744 265,287 28,491 458.522 Accumulated depreclatlon At 1 January 2023 Charge for the year At 31 December 2023 164.744 265.287 26,522 456,553 164.744 265.287 26.522 456,553 Net book value At 31 Oecember 2023 1.969 1.969 Al 31 December 2022 AJI properties we freehokl and held for the wrposes of provMJing supp)rted housing. Accumulated depwialion irldeS amounts historically disdosed as Sc¢ial Housing Grant. which relate bk lo depreciation of deemed cost excluding ganls received on the original recognition of the propety. 17
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 Investments Flxed asset Investment 2023 2022 Market valu• Ai 1 January Additions at cosl 1.514,273 1,140,381 604,800 {230,9081 1,514,273 Revaluation 8.684 At 31 December 1,522.957 Historlcal cost 868,776 868,776 Current assgt inv95tmont 2023 2022 Market value At 1 January Revaluation 1.688,777 1,946,295 (257,5181 1,688,777 9,685 At 31 December 1,698,462 Historical cost 1.630.000 1.630,000 The funds continue lo be invested in The Merc*ant Venturers, Charities Irweslmenl I"MVCIP"I {Charty Number 1053459}. The current assel inveslmenl reents the woceeds of saTe of Si Nicholas with Burton's in 2007 and the proceeds of sale ol Merchants, Amshouse in 2014 does fomi part of the endowment fund of the Charity. Tr Charity is activdy IwkirKJ for best use of these furkys new Almshouses to meet ils d)jeclives. Variations in the markel value of Ihe investrnents are shcwm by way of movement in the investment revaluation reswe {see Th)le 13). Debtors 2023 2022 Amounts falling due withln one year: Rent 19,805 29.10S 39 Other debtors 32.337 4,510 Prepayments and accrued income 9.109 58,019 36,886 18
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 10 Investments held on account of the extraordinary repair reserve The investmen15 hekl on account of the exLwdin¥y repair reserve are hdd by COIF. Withdrawals from the reserve musl be approved by Ihe Trustee and iw)me arisiThJ from Ihe inveslmenls is accumulated in the reserve. The invesiments are slated al their market vth on 31 December 2023. Their histor1 cost is £72,994 {2022. £71,764) 2023 2022 Markel value Al 1 January Additions at cost 332,092 363.592 1,230 1.230 Revaluation to market value 41,082 (32,7301 332.092 At 31 Decgmber 374.404 11 Creditors: amounts falling due within one year 2023 2022 Other creditors 13.327 5.793 Accnjals and deferred income 18,584 16.168 31,911 21,961 19
The Society of Merchant Venturers. Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 12 Capital account Al 1 January 2023 Transfer from income and expendtture accounl At 31 Decernb8r 2023 873.576 873,576 The capital a(xx)unl arKI fixed asset investment revahjalicffl reserve the endowment fund of the Charity. A transfer from incoffle and expenditure has historically been made under an aptxxtionment order bthich has now ceased {see )Unn9 pdiciesl. 13 Investment revaluation reserve Current asset Flxed asset Inveslment Investment Total Al 1 January 2023 Revaluation lo market value 58.777 645.497 704,274 18.369 9.685 8.684 At 31 December 2023 68.462 654,181 722,043 Movements on the inveslfflenl revaluation reserve represent changes in the market value of the ojrrenl and fixed asset investments held on ount of the share of the Charity in the Merchant VentUr$. Charities Inveslmenl Pool (see wle 81. 20
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 14 Extraordinary repair reserve Al 1 January 2023 Transfer from income and expenditure account Inveslmenl revaluation for year At 31 December 2023 332,092 1.230 41.082 374.404 15 Revenue reserve Al 1 January 2023 Surplus on ordinary aclNilies for year Transfer lo extraordinary repair reserve Transfer lo capital account At 31 December 2023 1,981,643 160.797 11,2301 2.141,210 16 Transactions with related parties Society of Merchant Venturers The Charity incurred a reallocalion of salaries and overhead costs of £14.37212022.. £13.005I from the Society of Merthant Venlurefs. to cover the servKes il wovNJes in relation to the management and administration of the Charity, of which £nil is ¢xrtslaTrJing al the year*nd12022." £nill. Merchant Venturers. Charltles Investment Pool (MVCIP) SMV Trustee Company Limited is the Trustee of MVCIP a1 the ultimate contr(Aling paty of The Society of Merchant Venturers, Mmsh)uses Charity. For delals of inveslmenls hdd arKJ income received from investments in MVCIP. see notes 4 and 8. At 31 December 2023 the was owed £29,105 by MVCIP 12022.. £nil). 17 Connected charity The Cole Charily (Registered Charity Number 2572371 is 2 connected charity under the definition of the Charilies. SORP 2019 as il has related objeels and the same Trustee as The Society of Merchant Venturers, Almshouses Charily. Further inforn)alion can be obtsined from the Charity'$ registered address delailed on page 1 of Ihe Report of the Trustee. The Society of Merchant Venturers. Almshouses Charity incurred a charge of £9.710 {2022'. £9,796) for the services of the Almshouse Manager and the maintenance officer. At 31 December 2023 £nil {2022.' £nill was owed by The Society of Merchant Venturers. Amshouse Charity to The Cole Charity relating lo these services. The Cole Charity rechaTged The Society of Merchant Venturers. Njmshouse Charity for various services during the year including,. the cost of a Chaptain of £27512022.. £1.054} and other sundry items al a cost of £35412022." £6.2251. At 31 December 2023 £30912022.. £522} was oulslanding. The Society of Merchant Venturers, Altnshouse Charity recharged The Cote Charity £45.702 for insurance in the year {2022 £nil and £16.013 for a unil of accommodation (2022.. £nill. At 31 December 2023 £16,01312022.. £nill was oulslanding. 21
The Society of Merchant Venturers, Almshouses Charity Notes to the financial statements for the year ended 31 December 2023 18 Owned l Managed units (Social Housing) Nvmbgr of units as at 31 December 2023 The Charity owns 12 units for disadvantaged people of whth 8 have been fulty tjd throughout the year 12022: 12 fully occupied)- Regldents, rents Residents rents are sel using the legislation whth t*$ a formula of CorLsumer Price Index (CPI) + 1 %. Vvhere ne$Sary. all or part of the Trnl can be redaimed. From 1 Awl 2023 rent for the Amshouse was £186.10 perweek. The charging of rents produced a contribution nel of voids over the year of £96.216 (2022.. £85.1421. 22