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2021-03-31-accounts

Ford Street & Maynard Almshouse Charity

Charity No. 202643

Registered Housing Association No. A3536 Annual Report and Financial Statements

For the year ended

31 March 2021

Ford Street & Maynard Almshouse Charity

Year ended 31 March 2021

Contents

Page
Legal and Administrative details 3
Trustees’ Report 4 - 5
Statement of Trustees’ Responsibilities 6
Independent Examiner’s Report 7
Statement of Financial Activities 8
Balance Sheet 9
Statement of cash flows 10
Notes to the Accounts 11 - 18
The following does not form part of the financial statements
Detailed Profit and Loss Account 19

2

Ford Street & Maynard Almshouse Charity

Year ended 31 March 2021

Legal and Administrative details

Charity registered number

202643

Housing Association registered number

A3536

Principal Operating Address

1 Cherry Court, Lamerton, Tavistock, PL19 8FL

Independent examiner

Helen Alcock, Dennathorne Accountancy Services, Dennathorne, Down Road Tavistock, PL19 9AG

Bankers

TSB Bank Plc, Bedford Square, Tavistock, PL19 0AG

Trustees

The Trustees who served during the year and since the year end were as follows:

Cllr H Smith (Chair) Mr D Balment Cllr L Crawford Mrs J Kilburn Mr W Lane Mr A Pitcher Mrs S Rasdall Cllr K Royston Mr R Sale Cllr M Ewings Mr G Shillabeer appointed 11 August 2020

Clerk to the Trustees

Mrs K Woodward

3

Ford Street & Maynard Almshouse Charity

Trustees’ Report

The Trustees present their annual report together with the financial statements of the charity for the year ended 31 March 2021 and have given regard to the Charity Commission guidance on public benefit as far as permitted by the Trust Deed for the Charity which was sealed on 1 September 1997 and as amended on 24 October 2019.

Objectives and Aims:

To provide a good standard of living accommodation for people in need, who (except in special cases) are inhabitants of the area of benefit. The area of benefit is the parishes of Tavistock, Gulworthy, Lamerton, Mary Tavy, Peter Tavy and Whitchurch.

Review of the Year:

The Charity maintains 12 properties (ten are Grade 2 listed) of which ten are occupied by sole residents and two by married couples. There were no vacancies during the year.

The Trustees decided to carry the planned cyclical maintenance work identified in the August 2019 Quinquennial inspection. All work was carried out under strict COVID 19 secure conditions recognising that the health and safety of our Residents is of prime importance.

The work included:

Review of Financial Position:

The majority of the income arises from the Weekly Maintenance Contributions (WMCs), paid by the Residents for the upkeep of their flats. The level of WMCs is lower than the local average rent, in line with the policy of offering ‘affordable homes for those in need’. The level of the WMCs is reviewed annually and any increases take into account level of inflation, pension and benefit increases and the limits imposed by the Regulator of Social Housing. This year the increase of 2.5% was delayed until October because of COVID 19 restrictions.

Strict control has been maintained over day-to-day expenditure which has enabled us to show a surplus this year of £8,872 excess of income over costs.

The trustees set an investment policy to produce the best financial return within an acceptable level of risk in order to maintain easily accessed reserves to cover the costs of changeover of occupancy of 3 of the flats. The balance of the reserves to be held in medium or long term investments for financing unexpected large-scale repairs to the Grade 2 Listed buildings. The Charity reserves should be held in cash or near cash investments denominated in sterling. The Charity’s cash balances will be deposited with institutions with a minimum rating of A- or invested in a diversified money market

4

fund. Deposits will be spread by counterparty, subject to a maximum exposure of 75% of the total cash balance per institution.

Structure Governance and Management:

3 Trustees, representing Tavistock Town Council and Gulworthy Parish Council are nominated by the respective Councils. The other 8 Trustees are drawn from the local community bringing relevant skills in either Finance, Maintenance or Welfare. A Resident’s representative has been appointed who attends Trustee meetings.

The three sub committees, Finance, Maintenance and Welfare, work rationalising information to aid effective decision making.

The Almshouse Association ‘Standards of Management’ which cover, Governance, Administration, Health & Safety, Financial Management, Residents, Land & Buildings policies and procedures are followed and reviewed annually.

Major Risks:

The risk summary assessment is reviewed at the quarterly meetings and identifies the risk likelihood and risk impact in the areas of Governance and Management, Compliance, Residents and Property.

Administrative Information

The charity is a member of the Almshouse Association, which is a national association which provides support, advice and guidance on a broad range of general and specific issues, to over 1600 independent Almshouse member charities that provide around 35,000 dwellings across the United Kingdom.

Approved by the Board on …… August 2021 and signed on its behalf by

Mr H Smith Mr W Lane Chairman of Trustees Trustee

5

Ford Street & Maynard Almshouse Charity

Statement of Trustees’ Responsibilities

Year ended 31 March 2021

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs and of the surplus or deficit of the charity for that period. In preparing those financial statements, the trustees are required to:-

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets and liabilities of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

6

Ford Street & Maynard Almshouse Charity

Independent Examiner’s Report to the Trustees of Ford Street & Maynard Almshouse Charity

Year ended 31 March 2021

Respective responsibilities of trustees and examiner

As the charity’s trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of section 144(2) of the Charities Act 2011 (the 2011 Act) does not apply.

It is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

  1. Which gives me reasonable cause to believe that in any material respect the requirements

  2. a. To keep accounting records in accordance with section 130 of the 2011 Act; and

  3. b. To prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act.

Have not been met; or

  1. To which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

H F Alcock

Dennathorne Accountancy Services Dennathorne Down Road Tavistock PL19 9AG

7

Ford Street & Maynard Almshouse Charity

Statement of Financial Activities (including Income & Expenditure Account)

Year ended 31 March 2021

Notes
Income from:
Charitable activities
4
Investments
5
Other
6
Expenditure on:
Charitable activities
7
Net gain on movement of investments
Net income and net movement in funds
for the year
Reconciliation of funds
Total funds brought forward
18
Total funds carried forward		 2021
£
46,868
904
7152
54,924
(46,052)

14,506
23,378

246,107
269,485		 2020
£
45,368
837
7,152
53,357
(65,776)
226
(12,193)
258,300
246,107

All income and expenditure derive from continuing activities and are unrestricted funds.

The statement of financial activities includes all gains and losses recognised during the year.

The notes on pages 11 to 18 form part of these financial statements.

8

Ford Street & Maynard Almshouse Charity

Balance Sheet

Year ended 31 March 2021

Notes
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash and cash equivalents
Creditors:Amounts falling due within one
year
12
Net Current Assets
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due after
more than one year
13
Total Net Assets
CAPITAL AND RESERVES
Unrestricted funds
General reserves
18
Designated reserves
18
Total Charity Funds		 £
940
31,210		 2021
£
343,835
89,802		 £
927
33,604		 2020
£
350,981
63,996
433,637

21,804		 414,977
24,237
32,150
(10,346)		 34,531
(10,294)
455,441
(185,955)		 439,214
(193,107)
269,486 246,107
68,397
201,089		 94,296
151,811
269,486 246,107

The financial statements were approved and authorised for issue by the Board on …… August 2021 and signed on their behalf by:

Cllr H Smith M W Lane Chair of Trustees Trustee

The notes on pages 11 to 18 form part of these financial statements.

9

Ford Street & Maynard Almshouse Charity

Statement of Cash Flows

Year ended 31 March 2021

Net cash generated from/(used in)
operating activities(see below)
Cash flows from investing activities
Interest received
Dividend income
Purchase of investments
Net cash flows from investing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
Cash flows from operating activities
Surplus/(Deficit) for the year
Adjustments to cash flows from non-cash
items
Depreciation of tangible fixed assets
Financial instrument net (gains)/losses
through profit and loss
Investment income
Working capital adjustments:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in)
operating activities		 2021
£
8,002
285
619
(11,300)
(10,396)
(2,394)
33,604
31,210
2021
£
23,378
(7,152)
7,147
(14,506)
(904)
7,963
(13)
52
8,002		 2020
£
(14,019)
244
593
-
837
(13,182)
46,786
33,604
2020
£
(12,193)
(7,152)
7,684
(226)
(837)
(12,724)
27
(1,322)
(14,019)

10

Ford Street & Maynard Almshouse Charity

Notes to the Accounts

Year ended 31 March 2021

1. Status of charity

The charity is registered with the Charity Commission as a charity within the meaning of the Charities Act, and as a Registered Social Landlord.

2. Accounting policies

The financial statements have been prepared 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) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Housing SORP 2014: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015.

The financial statements are prepared on a going concern basis, under the historical cost convention, as modified by certain assets measured at fair value through the income statement.

The preparation of financial statements in conformity with FRS 102 required the use of certain critical accounting estimates. It also required management to exercise its judgement in the process of applying the charity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

Income is derived from one class of business comprising weekly maintenance contributions receivable from housing accommodation.

Income is recognised on a straight line basis over the period to which it relates, net of voids.

e. Interest receivable and other income

Interest receivable is recognised using the effective interest rate method. Other income consists of dividend income, which is recognised when the right to receive payment is established, and the release of the social housing association grant (SHG), which is recognised on a systematic basis over the expected life of the asset.

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, and costs directly attributable to bringing the asset to its working condition for its intended use.

11

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

Land and buildings

Land and buildings includes freehold residential properties. Land and buildings are stated at cost, less accumulated depreciation and impairment losses.

Fixtures and equipment

Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of assets less residual value, other than land, over their estimated useful lives, as follows:

Asset class: Depreciation method and rate:
Land and buildings 2% straight line (buildings only)

Fixtures, fittings and equipment 25% reducing balance

g. Investments

Fixed asset investments are included in the financial statements at market value at the balance sheet date. The surplus or deficit on revaluation is transferred to the statement of income.

h. Impairment of fixed assets

Every year a review of fixed assets is carried out to ensure that their value as shown in the balance sheet is a fair value, which is deemed to be the lower of cost or value in use.

i. Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, deposits held with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

12

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

SHGs are made by the Homes and Communities Agency (HCA) and are utilised to reduce the amount of mortgage loans approved for SHG to the amount which it is estimated can be serviced by the net annual income of the scheme. The amount of SHG is calculated on the qualifying costs of the scheme in accordance with instructions issued from time to time by the Housing Corporation. The grants are made direct to the lending authority and are reflected in the society’s financial statement only when made and the relevant mortgage loan is reduced. The grant is recognised in income over the expected useful life of the housing property structure under the accruals model.

The charity has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets are assessed to ensure that they reflect a fair value. Fair value is assessed to be cost or value in use. Any reduction in value is recognised through the income statement.

Other financial assets, including investments in equity instruments, which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in the income statement, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are no longer recognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party.

Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at present value of the future payments discounted at the market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

13

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Reserves have been split by the Trustees between a number of designated reserves and the general reserve. These reserves are as follows:

General reserve

This reserve is 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.

Cyclical maintenance reserve

The reserve is set aside out of general reserve to meet the charity’s obligation to provide, on a continuing basis, for the repairs and maintenance of its property based on a planned cyclical maintenance programme.

Emergency repair fund

This reserve is set aside out of the general reserve to fund any large emergency repair costs.

Capital reserve

This reserve represents the property element of net assets, which the Trustees believe is not to be part of the funds available for the management of the charity. An amount is released to general funds each year to cover the deprecation charge and release of the SHG deferred income.

  1. Critical accounting judgements and estimation uncertainty

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.

Critical accounting estimates and assumptions

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to the changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

14

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

4. Charitable activities income
2021
£
Weekly maintenance contributions
46,868
Voids
-
46,868
5. Income from Investments
2021
£
Interest on bank deposits
285
COIF dividend/interest income
619
904
6. Other income
2021
£
Social Housing grant released
7,152
7. Analysis of expenditure on direct charitable activities
2021
£
Direct costs
33,858
Administrative costs
12,194
46,052
Included within the above costs are the following
governance costs:
2021
£
Accountancy and independent examination
750
Clerk
5,783
6,533
Trustees’ remuneration
Trustees of an Almshouse Charity are considered to hold the office
as a Director and accordingly their employments are subject to
disclosure in the financial statements. No emoluments were paid
to the Trustees during the year (2020: £nil).
During the year no trustees were reimbursed for expenses (2020:
£nil)		 2020
£
45,650
(282)
45,368
2020
£
244
593
837
2020
£
7,152
2020
£
52,824
12,952
65,776
2020
£
750
5,561
6,311

15

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

8. Net income for the year
Is stated after charging:
Depreciation of tangible fixed assets
Independent examiner’s remuneration – current
examiner
9. Tangible fixed assets
Land and
building
£
Cost
At 1 April 2020 and 31 March 2021
464,582
Accumulated depreciation
At 1 April 2020
120,053
Depreciation charge for year
5,533
At 31 March 2021
125,586
Net Book Values
At 31 March 2021
338,996
At 31 March 2020
344,529
10. Investments
At 1 April 2020
Additions
Revaluation
11. Debtors
Prepayments		 2021
£
7,146
750
7,896
Fixtures and
Fittings
£
66,216		 2020
£
7,684
750
8,434




Total
£
530,798
59,764
1,613		 179,817
7,146
61,377 186,963
4,389 343,835
6,452 350,981
Listed
investments
£
63,996
11,300
14,506
89,802
2021
£
940
940		 Total
£
63,996
11,300
14,506
89,802
2020
£
927
927

16

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

12. Creditors: Amounts falling due within one year

reditors: Amounts falling due within one year
Maintenance fees received in advance
Accruals
Deferred income		 2021
£
2,144
1,050
7,152
10,346		 2020
£
2,092
1,050
7,152
10,294

13. Creditors: Amounts falling due after more than one year

Deferred income 2021
£
185,955
185,955		 2020
£
193,107
193,107

14. Deferred income

Deferred income consists of a Social Housing Grant which was used to purchase the properties. This grant is released in line with the property depreciation method.

Balance as at 1 April 2020
Amount released in the year
Balance as at 31 March 2021		 2021
£
200,259
(7,152)
193,107		 2020
£
207,411
(7,152)
200,259

15. Tax status

The charity is exempt from taxation on any surplus arising provided that it is used for charitable purposes.

16. Contingent liabilities

In certain circumstances Social Housing Grants would become repayable, maximum exposure is £321,844 (2020: £321,844).

17. Related party transactions

There were no related party transactions during the year (2020: £nil).

17

Ford Street & Maynard Almshouse Charity

Notes to the Accounts - continued

Year ended 31 March 2021

18. Reserves

At 1 April 2019
(Deficit) for year
Depreciation
Release of SHG deferred
income
Transfers between funds
At 1 April 2020
Surplus for year
Rounding
Transfers between funds
Depreciation
Release of SHG deferred
income
At 31 March 2021		 Cyclical
maintenance
reserve
Emergency
repair fund
Capital
reserve
Unrestricted
general
reserve
Total
£
£
£
£
£
28,887
19,488
142,651
67,274
258,300
(12,193)
(12,193)
(5,533)
5,533
7,152
(7,152)
(26,760)
(14,074)
40,834
2,127
5,414
144,270
94,296
246,107
23,378
23,378
1
3,073
44,586
(47,659)
(5,533)
5,533
7,152
(7,152)
5,200
50,000
145,889 68,397
269,486

18

Ford Street & Maynard Almshouse Charity

Detailed Profit and Loss Account

Year ended 31 March 2021

Income
Weekly maintenance contributions
Interest received
Dividend income
Release of social housing grant
Expenditure
Property costs
Heating and lighting
Insurance
Repairs and renewals
Cleaning
Depreciation of buildings
Administrative expenses
Clerk
Clerk’s expenses
Television licence
Sundry expenses
Accountancy
Other professional fees
Gardener
Advertising
Almshouse Association subscription
24 hour alarm
Depreciation of sundry equipment
Total Expenditure
Movement in fair value of investments
Surplus/(Deficit) for the year		 2021
£
46,868
285
619
7,152
54,924
187
1,893
25,716
529
5,533
33,858
5,783
420
30
107
750
-
1,600
-
557
1,334
1,613
12,194
(46,052)
14,506
23,378		 2020
£
45,368
244
593
7,152
53,357
123
1,883
44,760
525
5,533
52,824
5,561
427
30
100
750
250
2,040
48
510
1,085
2,151
12,952
(65,776)
226
(12,193)

19