Charfty numbor: 202751 The Hospital of St Cross and Almshouse of Noble Poverty Trustees, report and Financlal statements For the year ended 31 0•cember 2021
The Hospital of St Cross and Almshouse of Noble Poverty COEs Page Reforenco and Admlnlstrativo Delalls of th8 Charlty. its TNstoes and Advlsers Trustees, Report Ind•p•ndent Audbtor's Report 9-11 Statemont of Flnanclal Actlvltlfjs 12 Balanc¢ Sheet 13 Statement of Cash Flows 14 Notes to tho Financlal Statoments 15-35
The Hospital of St Cross and Almshouse of Noble Poverty REFERENCE AND ADMINISTRATIVE DErLs OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021 Charity r9g1stèr numb•r 202751 Regi$ter¢d offlce Hospital of St Cro$$, St Cross Road. Winch8sler, S023 9SD Co-optatlvg Trustg Mr Jonathan Cooke (Chairman) Mr Willlam Corbett Mr Chrlslopher Anderson Mrs Rosemary Andreae (retired March 2022} Mrs Gill B8ck IPCC} Mr Christopher Higgins Mr Mi¢hael Killingley FCA Mrs Imogen Lynéon Skeggs {appoinled March 20221 Mrs Felicity Pennycook ACA (Honorary Treasurer) Mrs Katherine Wake Dr Tim Fosler Nomlnatlv8 Tru8tee8 Mr Robln Chute {Winch8Ster College- retired June 2021) Cllr Fiona Mather (Winchester City Council) Mr Adam Rattray IWln¢hester College- appoinled June 2021) Exrflclo TrustO0• Th8 Master of St Cr0#8: The Reverend Tery Hemmirrfj The Doan of Winchester.. The Very Rev Catherine Ogle Tho Rlght Wor8hlpful Mayor of Wnchester: Cllr Patrick Cunnlngham (2020120211. Cllr Vlan Achwal (202112022), Cllr Derek Green12022120231 Clerk to tho Trustèés Mrs Catriona Mortey Bankers National Weslminster Bank plc. 105 High StreeL Winchester, S023 9AW Sollcltors Godwins, 12 Sl Thomas Street, Winchester. S023 9HF Investment Managers CCLA Investment Management Ltd, Senator House, 85 Queen Victoria Street, London, EC4V 4ET Propgrty advisors Carter Jonas. 9a Jewry Street, Winchester. S023 8RZ Audltor Crowe U.K. LLP, Aquis House. 451 Blagrave Street. Reading. RG1 1PL
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Princlpal actlvltlos and alms The Hospital's principal activity tx>ntlnues to be the provism of a INing community which offers home and haven to elderly gentlemen on the premises of "England's oldest and most perfect Almshouse. and to provide a welcom8 lo all who wish to visit the Hospital and enjoy ils surroundings. The Hospital was originally founded around 1132 by Henri de Blois, Bishop of Winchester. Its alms are to maintain the propety, cafe for the Brothers. wdcome visitors and continue the worship at the Church of St Cross for the Brothers and, for the past 500 years. the parishioners of Sl Faith. Revlew of achigvemonts and porfomiance for th• year Horitage Profllo 2021 saw tho easing of Covid reslrl¢lions, and Ihe UK'S successfvl vaccinallon programme gave the publiG confidence to venture out.. it was pleasing to see the relum of a sign[fan1 number of visitors lo St. Cross durlng the $6¢ond half of the year. The Hospltal's 5paGIoLfS Church. Halls and grounds enabled si Cross to open up to visitors safely whilst still protecting ils 61derty resldents. A broadband service wa5 transmitted 8cr05s the Inner quad from the office lo the Church to facilitate Ihe live streaming of servic*s for cautious parishioners who contlnued lo wor5hlp Irom home. Durlng tho year dlscussK)ns abwl celebralions for the Hospital's 900 year anniversary lin 20321 started as such an important milestone would require careful plannlng. In S8plember Ihe Hospital look part In the Nallonal Heritage Open Day5 scheme. which offers free entry for one day In order lo celebrate and promote the UK'S history and culture. December was a busy month for seasonal concerts In the Church, as many couldn't lake place in 2020. In a Continued effort to make a posilNe contribution lo the natural environmenl, frther nest boxes for Swifts wore in51alled al si Cross by the Hampshire Swrfts Group. The number of neslirvJ Swift5 whl¢h reared young doubled in 2021 compared with the previous year., a very pleasing result. Rèvlaw of charltable aGtlvitios Buildings conservation The largest element of the repalr budget in 2021 was to repair the chuffh south Iransepl, sacristy and soiilh chancel roofs, at an estimated cost of £120,¢XJO. This work did not lake place., cost estimates were significantly higher than expecled because of the IMpt of Brexit and the COVID pandemic on supply chains. Temporary repairs have been undertaken, and the Hospital's architects will make a fuller assessment during 2022 of Ihe extent and limlng of any further repair work required. In other respects the planned repair programme for 2021 was largely unaffected, indudiro a ntinuation of work to renew Ihe plumbing lo the Brothers, flats. with a further £57.000 spent. and the refurbishment of the medieval Hundred Men's Hall at a Gost of £36.000, largely funded by a generous grant of £25,000 by the Friends of St. Cross H05Pital.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEM8ER 2021 Welfar8 and visitors No new Brothers were able lo lake up sidenCe al Sl. Cross betsveen March 2020 and th8 end of 2021 because of the disruption caused by the pandemic. One Brother left Sl Cross to take up residence in a rbursing home tiusl before his 1W birthday) in June arKI sadly a Brother died in January 2022. However, Ihe recruitment drive to fill the vxanl flats has been successful and the Trustees have been pleased lo welcome four new Brothers In 2022. The Hospital had about 3,500 paying visilors in 2021. a signffKant improvament on the 600 In 2020, but still w811 below the 8,000 in 2019.11 was pleasing Ihal, again after the cancellation of most events in 2020, there wwe 17 weddings al Sl. Cross during the year, and a successful Michaelmas Fair in September. Frl8nds ol St Cross Hospi181 The Friends of Sl. Cm$$ has atMyJl 720 indNidual members. They provide a wide rango of educational and fvné-raising activities both within and outside th& premises of the Hospital, although these were curtailed during the pandemic. During this period the Friends were able lo offer members some lectures over Zoom., face lo face meetings wer8 resumed during 2021. Durlng 2021 the Frlends gonerously donat8d £17,000 to the Hospilal lo fund the project lo pave the area beneath the Beaufort Tower.. this work was Mpleted early in 2022. Flnan¢lal rnvl•w Flnancial aclivllies The Hospital's surplus in 2021. before inv6sbnent gains. was £172.tXIO. following a deficit in 2020 of £79,000.11 was important for the Hospital to realise a suwus. to fe¢over the losses suffered dudng the previous year. As noled above, planned repairs to the church roof. budgeted al £120,000, dld not tak8 place durlng Ihe year. so thè surplus has been flattered signifKanlly by the delay,. this is unlikely lo ba a long-lerm saving, as the repalr work will almost certainly be required lo be undertaken in the foSeeable future. Ineome recovered from th8 2020 COVID restrlcted total of £658,0() to £929,000. The principal reasons for the recovery were.. hlgher Investment income l+ £134.000) following the investment in 2020 of the proceeds of sale of land owned by the Hospital at Whitchurch.. a recovery in visitor income fdlowng the 2020 COVID lated dosures {+£90.0001.' and a very welcome donation by the Oak Foundalion of £37.500 Resources expendeé during the year were well ¢onirclled. imasing by 3% to £757,000 (2020.. £737,000). Balanc9 Sheet Net assets in¢reased by 11 % to £22.9 million {2020- £20.6 million), primarily as a result of a strong perforrnance by the Hospital's inveslment portfolio, managed by CCLA, whh increased ir value by 13Vo to £16.2 million, driven by strong equity markets. The outlook for Investment performance in 2022 is, however, u[ertaIn, in light of the Russian invasion of Ukraine and th8 1 threats of inftation and possible ecoTh)mic recession. Cash al bank and in hand at 31 0mber 2021 was £262,0 {2020: £88,000).
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 R8sourGes and Reserves policy Of the total fijnds al 310ecember 2021 of £22.9 million. £19.6 million was perman&nl endowment and £558,000 restricted funds. Wlthin restricted funds £81,300 related to Brothers. welfare and social aclivilies. Unreslricled funds were £2.7 million of which £856,000 were designated funds. The batance r81ales lo the General Fund which includes £427.000 of tangible fixed assets Imosdy the new visitor loi18ls arld bollers). The Tru8lees' policy is to plan expenditu wthin available resources whilst retaining reserve$ lo provide a degree of flexibillty to meet the cost of major repairs. These can be signlfi¢ant when rnainlaining ancient Grade 1 listed buildings. Inveslment policy The foundation buildiros and the Invesknenl properties are managed to best effect wlth the aid of quinquennial inspects'ons and reports. Monetary Investments are currenmy held in common investment funds. bthere tho fvThJ managers practise socially responsible inveslm•nl. The policy applicable to equity-based inveslmenls is lo wodu¢g the best irrne ¢ompalible with longer-lemi capital growih and security. The pollcy applicable lo fixed Interest and varlable inleresl-bearing Investments Is to aim for maximum income subject lo proto¢lion of capital Isuch inv8slmenls are mad8 into highly rated bonds or deposits). Outlook and future plans The Hospital will ¢onllnue the alms as slated above, namely the m8lnlenan¢e and refurbishment of the fabric of the church and hospital building5, and the welfare of the Brothers. Refvrblshment ol Brothers, Il&ts Plannlng consent for this major refurbishment project was weived during the year, and the Trustees hope lo be able to start work on the prolect later in 2022. The refurbighment wlll extend over several years. firsuy becaJs8 of th& loglsllcal constraints of housing all the Brothers while tho work lakes place, and secondly because11 is beyond the ability of the Hospital to furKI solely from Its own reserves. The latest estsmale of the Cost of the project is about £3.5 million. The Charty CommisSn have approved the Trustees, request that up lo £1 million of the Hospital's permanent endowment can be used towards the funding som6 of Ihe refurbishment work. Furthermore, the Trustees have decided that, in years when a surplus has been achieved. part of that surplus should be transferred to a nevly established 'Refurbishment Reserve, within unrestrKled funds lo ¢onlrlbute further to the cost of the proie¢t. For 2021 the Trustees have approwiated £100,000 of the surplus to this reserve. It will be clear that the Hospital Can afford to fund only part of the fvll cost of refurbishment from its own resources,. the Trustee$ are therefore considering how best to raise the addrtional funds which 11 be required.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Other matters The COVID-19 pandemic had a Signffant adverse effect on the Hospital's incorne in 2020, and this has cx)ntinu8d into 2021. The Hosprtal is well furKled and managed. ané is thus able to withstand these shocks t1, as long as there is signrficant uncertainty over future income. th8 Trustees wlll only commit to future plans to the extent that it is prudenl to do so. Because of the pandemlc, no fvrther progress has been made on th8 Landscape Conservation Maslerplan. which is intended lo ueate a historically relevant management plan for Ihe Hospital's land. including the Park and water meadows. During 2020 we drew up a Ire8 management strategy and undertook a tree safety audit, which cover the extent of ash dieback and recommendations for other tree works. This tree removal will also help the plight of the rare Southern Dafflselfly and we have been In discussion wilh Hampshire and Isle of Wigm Wildlrfe Trust about thls project. We hope that this work will commence in Autumn 2022. Publlc bBnofit and tho ro1S¢f of povorty The two foundallons of the Hospilal of St Cross {eslablished 11321 and tha Almshwse of Noble Povety leslablished 1455) were founded to provide relief for the poor and needy. through the ovlsion of accommodation and suslenanrE. The Tru51ee$ of the (now combined) foundations are also fully commltted to the malntenance in their original se of the H05Pital's uniqua sel of grade- on•-Ilsled mediev81 bulldings and have in place a continulro prowammo of repalr and Improvem8nl. The Hospital Is al the heart of Ihe local community. As an histori¢ almshouse, il provides accommodation for Iw•nty-fiv& elderly men. The visiting public are welcome for 363 days In the year lo visit the ancient building$, walk in the gardens. request the Wayfarer's Dole and lake refreshment provided by the Hospllal volunteers in the medièval Hur11 Men's H811. The Hospital's website is belng contlnuously develoFed and improved lo provide inltsresting and useful information for the local community, visilors and prospective Brothèrs. Th8 shop catalogue has been added, as has a page aly)ul lh8 historic graffili survey. Work is ongoing to produce a page about the v2rious archaeological digs which have taken place over the years. The Hospital explores ways in which il can help with environmental issues and has axpanded the directions page on the website lo indude irrformalion on all the options available to visitors to travol to the slle, Includiro pU1C Iranspart. The affjas of public benefit set out In the following paragraphs remain central to the role of the Hospital in the communlty. albeit that so many of th&se a¢lNtties were curtailed or cancelled in 2020 and the first part of 2021 because of the COVID-19 restricb"ons. The Hospital enjoys an excdlent association with the Parish of St Faith, who have worshipped at Si Cross since 1507 when their own church fell Inlo disrepair. The Parish regard Sl Cross Church as their pn'ncipal place of worship with a typical Sunday allendanGe of well over 100 worshippers. They do much to assist in the upkeep of the church. In addition the Parish hold the annual Ii)cal fete, which is enjoyed by up lo 2000 people, In the wunds of the Hospital. The fete was cancelled in both 2020 and 2021. The church and other buildings wlhin Ihe Hospital are in regular use by the Friends and other local groups for worship. concerts. educational purF¥)ses and events. There is a very strong musical tradition which continues to filjnsh with a very fine church organ and an active church choir. The church is in high demand for (x>n(%rts and musical performare9.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Brothers, Library is equipped lo provide a fleXIe education room. School parties can visit lo learn about Ihe Hospital using a careful1y-des1gtd activity programme which is base on the current Key Stage 2 school curriculum. These school visits are managoé in conjunction with HIWW. lw conducl educational wildlife tours of the Water Meadows which were followed by a vi5il to the Hospit. Local schools and a high8r education cdlege use the church and medieval halls for servlc&s and degree ceremonies. Outside the maln sile, the Hospitsl provides several other signtficant facilities which help lo nurture a strong sense of local community. These include the provision of the Parish Hall and 80 traditional allotments In 8 beautiful s8tbng by the rNer. The Parish Hall is In constant community use for the local p-SChool nursery, Gid Guide5, Brownies and other local activit5 such as yoga and dance classes. The meadows which surround the Hospital provide a peaceful setting in which the public are able to walk and r8lax free of charge. Th8 meadow 15 let to and managed by HIWW as part of their programme c)f countryside management arKI public education. Beyond the meadow, the Hospital lets ils land to the local Sl Cross Cricket Club where regular mal¢hes are hald for bolh adult and youth Cricket. The Hospital records since Ils original foundatlon are dc¢umenls of con$iéerable historical Interest and Importance. To reduce the risk of their loss or deslruclion, the records are held and preserved by the Hampshlre Record Office and are available for public view within certain limilatsons to protect individual prlvacy. Plans are in place lo Continue adding to the archives. Structure• govgmanco and management GovornSng d¢)¢um•nl The Hosplta1 of Sl Cross Ilhe Hospital) Is a registered charity wh05e objects are sel out in the Charity Commission Scheme dated 5 November 1984 {'Ih8 S¢heme'l. a$ Var by the Scheme of 14 March 1990, an Order of 1 November 2006. a Memorandum of 5 September 2006 and Resolutions of 23 June 2009, 20 March 2012 and 23 March 2022. The 2022 Resolution amended the Scheme lo refl8cI the Charity Commission's consent to pemill the Hospital to expend part of Its permanent endowment. There are founéalions, the Hospital of Sl Cross and the Almshouse of Noble Povarty. The Hospital's property and assets are owned by Ihe foundations as the Corporation of tho Master and 8relhren IBrothers] of the House or H05pilal of Sl Cross an(1 the Trustees adminisler il on behalf of the Corporation. The Trustees, responsibilitles for appEicalion of income are sel out in the Scheme. The first such responsibility is lo defray out of the income of Ihe Hospital the cost of maintaining the propety and all other costs P8yable in respect of the propety and all the proper c051s of adminislralion and management of the Hospital. Subject to the payments aforesaid, the Tnjstees shall apply the Income of the Hospital for the benefil of the Brolhers in such manner as the Trustees think fit. Trustees The narnes of the Tnjstees who served during the year and lo the date of Ihis report are shown on page 1. Cowoplalive Trustees are appoinle(I by the Trustees and serve for five years. One nominallve Tmstee is appointed by Winchester Ciiy Coun1 and serves for four years. The other nomlnalive Trustee is appointed by the Warden of Winch851er College. The TrJslees meet quarterly and have appointeé committee5 covering finance, property, risk management. visitors arvj weffare. Each Tru51ee usually sils on two committees.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Trust récruStment Co-optative Truslees are reUlled after a thOrJgh sdection and InleNtew presS which ensures that a balance of relevant skills is maintained across tho Board. Trustee tralnlng Each Trustee. upon appointment. re¢eNes a Trustee's welcome induction pack, indicaling the range of Iheir responsibilities,. in addition some of the TnJste85 attend annual seminars on accounting for ¢harilie$ ané recent Charity legislation and practice. Al Trustees also receive copies of the magazine, Governance, which provides essenlial information f¢y effective Trusl88S. Organisatlonal management Under the SGheme, responsibility for the management and control of thé Hospital and th& Brethrer) rests wllh the Trustees. The day-lo-day running of the Hospiial. the rnainl8nance of the pr8mis8s and management of the employees is delegated lo the Clerk lo tho Tru$lees. under the general supervision of lh6 Trustees. The Master of St Cross (himself a Trustee) 18 charged with the pastoral welfare of the Brethren. Brothers, accommodatlon Is kept lo a hlgh stsndard arml advertlsed regularly to Onsure that any vaoancles are filled by suitable applicants. Rlsk manag•mont The Trustees have examlned the prirKlpal aws of Ihe Hospital's operatlons and consldered the major rlsks laced In each of ihese areas. The Risk Management Committee biannually establishes, assesses and ¢ategorises all risks. In the opinion of the Trustees, the Hospital has eslabllshed resources and review systems which allow thes rlsks to miligaled to an acceptste level In day-lovday operations. During Ihe COVID pandemic. 8 standing committee of Trustees was establ1s arml met weekly online lo review the lalesl guidance and informalK)n lo 8nable11 lo take whatever action is necessary lo keep the Brothers and staff safe. The Tru5tee5 and Clerk lo the Truslees found this a useful fowm., therefore, since the lifting of COVID reslriclions. it has been recnnstiluled as a steering commlttee and continLJes lo meet online every 2 10 3 weeks. Mainlenan¢e of Income streams is vltal In order to continuo to meet the Hospital's obj'ects. Reserves are invested in a mix of stock market investment fvnds and investment properties lo spread risk whilst producing a regular income stream. Trustee$ work wilh the Investment Managers and Property Advisers lo ensure that an appropriate asset allocation Is malntained. The repair and safeguarding of Grade I listed rnedal tMJilding5 is coslly and good malnlenance is an important part of this. All Heritage bvildings are subject lo quiryuennial inspection ané Ihero is a contlnual programme of repair and IM[Vernent. Regular irL5uran* reviews are caffTred out. Annual fire tisk assessments are carried out and the Hospital works closely wilh the local Fire Service to ensure quick and effeclive access in the event of an emergency. The Hospital a150 (x)mplies with the latest Health and Safety Managemenl System backed by regular internal and extern81 audiis. The easing of COVID restn'clions has facllttaled a retum to work on the list of building improvements which will further improve the accessibility and safe enjoyment of the H05piial site.
The Hospltal of St Cross and Almshouse of Noble Poverty TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Trustee8' rosponsibiliti¢$ for the financial ststemonts The Trustees are re5ponsib18 for preparing th6 Trustees. Report and the financial statements in accordance wllh applicable law and United Kingdom Accountsng Stsndard$ (United Kingdom Generally Accepted Accounting Pra¢ti¢el. The law applicable lo ¢harilies in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair vi8w of the stale of affairs of the charity, and of the incoming resources and application of resource of the charity for that period. In preparing these financial stalem8nts. the Iruslee$ are required lo- 8Aecl suitable accounting policie5 and then apply Ih8m consistenuy., Observe the method$ and principles in the Charilies Statement of Recommended Practice., Make judgements and aceL)unling eslimales that are reasonable and prudenl- Slat$ whether applicable UK Accounting Standards have been followed. subject to any materlal departures disclosed and explained in the financial statements: Prepare the financial stalgments on the going concern basls unless il is inapproprlale to presume that the Gharity will Continue in operation. The Trustees are rasponsible for Ihe mainlenartt arKt Integrity of the charity and financial Informallon Included on the ¢harity's website. Legislation in the Uniled Kingdom govorning the preparation and dlsseminalion of flnanclal statements may differ from legi51ation in olherjurisdictions. The Trustees are re5pon5ible for keeplng proper accounting records that are sufficient lo show and explain the charity'5 transactions and disclose with reasonable accuracy al any lime the financial position of the charity and enable them to ensure that the financial statements comply wllh the Charitles, Act 2011, the Charity (Ac¢ounls and Reports> Regulations 2008, and the provisions of the Scheme. They are also responsi1e for safeguarding the assets of the charity and henc8 for taking reasonable Steps for the prevenlion arKJ delection of fraud and olher irregularS1ies. The report was approved by the Tnjstees at their meeting on 21 June 2022 and signed on Iheir behalf by.. Jzan Cooke- Chairman
The Hospital of St Cross and Almshouse of Noble Poverty INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE HOSPITAL OF ST CROSS AND ALMSHOUSE OF NOBLE POVERTY FOR THE YEAR ENDED 31 DECEMBER 2021 Oplnlon We have audited the financial sL8lements of The Hospital of St Cross and Almshouse Poverty {'the ¢harily') for the year endeé 31 December 2021 which comwise the Stslemenl of Financial Activities. the Balance Sheet, the Ca5hflow Statement and notes to the financk415talemenls. including significant a¢¢ounling policies. The financial reporting framework Ihal has been appli in their preparation is applicable law and Uniled Kingdom Accounting Standards. induding Financial Roporting Standard 102 The Financial Reporting Slandard appluble in the UK arKI Republic of Ireland (United Kingdom Generally Accepted Accounting PrtsceI. In our opinion the finan¢lal statements: give a true and fair view of the stale of the chariVs affairs as al 31 D8mber 2021 and of Ils income and experltUre, for the year then ended.. have been properfy prepared in accordance wlth Unlied Klngdom Generalty Accepted Accountlr)g Practice.. and have been prepared In accordance with the requ1ments of the Charitk88 Act 2011 Ba818 for opinion We condLted our audit Ir) aOrdare wlth Inlemational Standards on Audf(ing (UK) {ISAs IUKI} and applicable law. Our responsibilities under those standards are fvrther described in the Auditor's re$ponsibllllies for the audlt of the financial statements se¢lKJn of our report. W8 are independent of the charity in accordance with the ethical requirements Ihal are rolevanl lo our audit of the finanGlal Statements in the UK, induding the FRC'S Ethical Standard, aTrJ wo have fulfi51ed our other ethical responsibilities in accordance with these requiremenls. We believe that the audit evidenc8 we have oblainad Is sufflcienl and appropriate to provide a basis for our opinh?n. Concluslons relan9 to golng ¢on¢ern In audlting the financial slatemenls. we have concluded that the trustee's use of the going concern basls of accounllng in the preparatn of the financial slalwments Ls appropriat&. Based on the work we have performed, we have not idenlrfied any material uncertalnties relatlng to events or conditions that, individually or colle¢twely, may cast signifan1 doubl on the ¢harlVs abllity to continue as a going c¢n¢em for a sxriod of al least bvelve mnths from when tho finan¢lal slalemenls are aulhorised for issue. Our responsibilities and the responsibilities of the trustees wjth respect to going concern are desulbed in the relevant sections of this report. Other informatlon The trustees ar8 responsible for the other informalion contained within the annual report. The other Informatlon comprises the information included in the annual Teport. other than the financial $talemenls and our auditor's report thereon. Our opinion on the financial statements does not cover the other informatlon and, except to the extent otherwise expli¢iUy stated in our report, we do not express any form of assurance conduslon Ihereon. Our respon5ibilty is to read the olher information and, in thlng so, o)nsider whether the other Information is materially inconsislenl with the financial statements or our knowledge obtained in th& audll or olheTrvise appears to be materially misstated. If we identfy such material inconsisloncies or apparenl material misslalemenls, we are require(i lo detemine whelh8T this gives rise to a material misstalemenl in the financial statements themselve5. If. based on the work we have perfom)ed, we condudo that the is a material misstatement of this other irrformation. we are required to report that fact. We have nothing to report in this regard.
The Hospital of St Cross and Almshouse of Noble Poverty INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF THE HosPAL OF ST CROSS AND ALMSHOUSE OF NOBLE POVERTY FOR THE YEAR ENDED 31 DECEMBER 2021 Matters on whlch we ar• r•qulr8d to report by ex¢¢ption We have nothing to report in respect of the following matters in relalion to which the Charities (Accounts and Reports) Regulations 2008 requires us to rewrt to you ff. in our opinion.. the information given in the financial ststements Is inconsistent in any material respect with the trustees, report,. or sufficient and proper accounting records have Th)t b8en kept by the charity,. or the financlal slalements are not in agreement with the accounting records and retums., or we hav& not received all Iho informalion and explanalions we require for our audit. Respon8iblllties of trustees As explained more fully in the Iruslees. responsibililies statement set out on page 8, the Iruslees arè sponsibl& for the preparation of the financial stalements and for being satlsfied that they give a tnje and falr vlew. and for such int8mal conlrol as the trustees determine is n8cess8ry to enable the preparation ol financial slalemenls that are free from material misslalemenl, whether due to fraud or error. In preparing the financial stalemenls. the truste8s arè responsible for ass$$$ing the charlty's ablllty to continue as a going concern. disclosing. as applica¢, matters related lo going concern and using tho going concern basls of accounting unless the Injslees either Intend to liquKlale th& charty or lo cease operations, or have no realistic alternative bul lo do so. Audltor's re8ponslbllitlwJ lor thé audlt of thg flnanGial $tatemonts We have been appointed as auditor under section of the Chanlies A¢t 2011, and roport In 8c¢oréanc8 th the Acts and rdevant regulations made or havlng effect Ihereunder. Our obj•clives are lo obtain reasonable assurance about whether the financial statements as 8 whole are free from material misstslemenl, whelher due lo fraud or error. ané lo issue an auditor's report that include5 Qur opinion. Reasonable assurance is a hlgh16vel of assurance, bul is not a guarantee Ihat an audit conducted In accordance with ISAS {UK) wlll always (Jetect a material misslatemenl when il exists. Misslalemenls can arise from Iraud or error and 3r8 considered material rf, indlvldually or in the aggregate. Ih&y could reasonably be exp¢¢ted to influence the economic decisions of users taken on the basis of these financlal stslements. Delalls of the extent lo whh the audit was ¢onsSdered capable of delectlng irregularities, IldIng fraud and non-compliance with laws and regvlatK)ns are set out below. A further description of our responsibilities for the audit of the firnCial statements is localed on the Financial Reporting Council's website al-. www.fr .ukJaudilorsres onsibili ies. This de$¢riptlon forms part of our auditor's report. Extent to whlch the audit wa8 consldorod capable of detOGting Irregularftles, Includlng fraud Irregularitie$, ir)cluding fraud, are instances of non-compliar)ce with laws and regulations. W8 identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due lo fraud or error, arKI discussed these between our audit leam members. We then designed and performed audit procedures responsive to those risks, including obtsining audit evidence SLrfficienl and appropriale lo provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within Whtr the charity opefftles, focusing on those laws and rewlalions that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulation5 we considered in this context were the Charities Act 2011 together wllh ihe Charities SORP (FRS 1021. We assessed the required compliance with these laws arKI regulations as part of our audil predre8 on Ihe relaled financial slalement ilems. io-
The Hospital of St Cross and Almshouse of Noble Poverty
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE HOSPITAL OF ST CROSS AND ALMSHOUSE OF NOBLE POVERTY
FOR THE YEAR ENDED 31 DECEMBER 2021
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were Charities Act 2011, The Charities (Accounts and Reports) Regulations 2008, The Charities SORP (FRS102) and Financial Reporting Standard 102.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, stock and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, 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 (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP Statutory Auditor
Thames Valley
1 July 2022
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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The Hospltal of St Cross and Almshouse of Noble Poverty STATEMENT OF FINANCIAL AcTIVlEs FOR THE YEAR ENDED 31 DECEMBER 2021 P•mian8nt fund$ 2021 Restricted funds 2021 Unrestrlcted fund$ 2021 Total funds 2021 Total funds 2020 Noto Income from: Donations, grants and legaci8S Fundraising activities Investment income Charitable aclivitles 19.021 73,176 92.197 53,329 24.834 558,334 251,408 24,834 560,995 251.408 6.701 426.776 171,232 2.661 Total Income 21,682 7.752 929,434 658,038 Expèndlture on: R8islng funds.. Cost$ of generating vUntary irtCA)me Inveslm8nl management costs 8.889 8.889 6,001 8.435 41,917 50,352 45,485 Chadl8ble activities 28,013 669,724 697,737 685.901 Total oxpendlture 8,435 28.013 720.530 756,978 737,387 Net Incomlng (outgoing) resourcos beforo investment gain8 (8.435) (6.331) 187,222 172,456 179.3491 Nel gains Ilossesl on investments 14 1,806,344 77,041 271,829 2.155.214 653,320 Net inGomo bdorn transfers Transfers ben funds 1,797,909 70,710 459.051 2.327,670 573,971 15 10.308 1.625 (11,933) Net movement In funds 1,808,217 72.335 447,118 2.327.670 573,971 Reconcillatlon of funds: Total furlds al 1 January 2021 17,781.468 485.807 2,288.313 20,555,588 19,981.617 Total funds at 31 December 2021 19.589,685 558,142 2.735,431 22,883,258 20,555,$88 12-
The Hospital of St Cross and Almshouse of Noble Poverty BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2021 2021 2020 Note Flxod a88et8 Tangible assets Inveslrnenl Properties Investments 16 17 18 427,314 6.116,000 16,180,606 451,005 5,821,000 14,309,296 22.723,920 20,581,301 Currgnt a880ts Stocks Debtors Cash al bank and hand 19 20 26 11.145 13,757 261,564 286,466 97,386 Creditors: amounts falling due wllhin one year 21 (127.128) 1123,0991 Not curronl {Ilabllltlesl1assS 159,338 (25,7131 Not as$¢ts 22,883,258 20,555,588 Charlty funds Permartenl funds Reslricled funés unreStrled fur)ds 22 19.589.685 558.142 2,735,431 17,781.468 485,W7 2,288,313 24 Total funds 22.883.258 20,555,588 The financial slalemenls were approved by the Trustees al Iheir meetlng on 21 June 2022 and slgn8d on their behalf, by.. onathan C¢x+ke- Chaiiman Fo1i¢ity Penny¢ook- Honorary TTeasurer The notes on pages 1510 35 ft)rm part of these financial stslement5. 13-
The Hospital of St Cross and Almshouse of Noble Poverty STATEME OF CASH FLOWS FOR THE YEAR ENDED 310ECEMBER 2021 2021 2020 Note Cash flows from operatlng activities Nel income loulgoingsl for the year (from Statement of Financial Activilies) 172.456 {79,3491 AdJu8tm•nt for: Dividends, Interest and rents from investments Decr8a$el(Increase) in stock Decreasel{In¢rease) In debtors {D8creaselllncrease in creditors Depreciation of tangible fixed assels 1560,995) {11.1451 14,2531 4.029 35,306 1426,7761 21.3 33,318 34,397 Net cash Provided by operatlng activitses 1364.6021 {417,0201 Ca8h flow3 from Invgstlng actlvltlas Purchase of fixed asset investments Transfers to cash from Inveslments Purchase of langible fixed assets Disposal of tangible fixed assets Dividends, interest and rents Teceivable 111,9331 837 (11,6151 (4,010,579) 50,000 {13,642 3,997,811 426.776 580,995 Nel cash used In Investing actlvitses S38.284 450,366 hange cash and cash equalents in the year 26 173,682 33,346 ash and cash equivalents brought forward 87,882 54,536 Cash and cash equNalents carried foThvard 261,564 87.882 -14-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR fHE YEAR ENDED 31 DECEMBER 2021 Accounting Policies and Key Judgements 1.1 Basis of preparation of finandal statomonts The financial statements have been prepared in accordance with Accounting and R8FM)rting by Charities.. Slalement of RecommerKled Practice applKable to charities preparlng their accounts in accordance with the Financial Reporting Standard applicable in tho UK arKI Republic of Ireland (FRS 1021 (effective 1 January 20151- (Charities SORP IFRS 1021), the Financial Reporting Standard applicable in tha UK and Republic of Irdand IFRS 102) and the Charities Act 2011. The Hospital of Si Cros5 and Almshouse of Noble Poverty meets the definition of a public benefil entity under FRS 102. Assets and liabilities are inilially recognised at historical cost or transactlon value unless othwise slated in the relevant accounling policy. 1.2 Golng ¢onurn The Trustees rn$kIr that there are material uncartalntles about the Hospllal'5 abillty lo Continue as a ooing ¢oncwn. The most Significant areas of uncertainty thal affecl the carrying value of assets held by the Hospital aro the lev81 of inv8slm8nl return and the p8rfom)ance of investment markels, whicfv have recendy been Impacted by COVID-19 (see Ihe inv8slment policy and dsk management sections of the Truste¢$' annual rewrt for more Information). 1.3 Tanglbl• assets Heritage assels The freehold propertles described in Note 17 on page 27 ar8 not included In thé balance sheet al a monetary value as n8ilher their ¢osls. which have been fully wriiten off, nor Iheir market values are available. Signrficanl improvements lo the fitting out of heritage assets a ¢apitalised where appropriate as fixlures and frttings. Fixtures. ffttings and plant Indlvidual assets c051ing more than £S,O(M) ar? c8Pitalisod and Included at GOSL including any incidental costs of acquisition. Tangibte fixed assets are staled al cost less depreciation. Depciall0n is provided at lates calculated lo wile off the cost of fixe(l assets. less their estimated residual value. over their expecle(J useful lives on the follong basks: Fixtures & Fittings 15 years 5traighl line 15-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 DECEMBER 2021 A¢¢ounting Policies and Key JudgemerEts lnv8stmentpropertS Investment properties are included in the ba18nce sheet al their open market values by a professional revaluation every fwe years and by the Trustees in the intervening years. The surplus or deficit on revaluation of indNidual properties is transfeed to th8 permanent endowment fund via the Slatement of Financial Aclivilies. Depreciation is not provided in res1 of freehold investment properties, in accordan¢e with Sect 16.. Inveslmenl Property of FRS 102. 1.4 Investments lrnvestmenls are a fomi of basic financlal instrument and are inllially recognlsed al their transaction value ane subsequently m8asured al their fair value as al the balance sheet date using th¢ closing quole(I market price. The statemenl of financial activities includes thè nel gains and losses arlsing on the ValUation and disposals throughout the year. The Hospital does not awulre pul options, derivatlve8 LY other complex financial instrum8nls. The maln fomi of financial rSsk faced by the Hospltal is that of volalilily In equlty markets and investment markets due to wider economi¢ condllions. the attitude of investors lo investment rlsk, and changes in sentlmenl concerning equilles and wilhln particular sectors or sub sectors. 1.5 Reallsod galns and108ses AJI gains and losses are taken lo the Statement of Financial Activllies 8$ they arlse. Realis•d galns and losses on investment5 are calculated as the dTfference beeen sales proceeds and their opening rying value or their purchase value rf acquired subsequent lo the first day of the financial year. Unrealiseé gains ané10sse5 are calculate¢J as the difference betsveen the fair value al the year end arKI their carying value. Realiseé and unrealised inveslmenl gains and losses are combined in the Statement of Financial Activitie5. 1.6 Stocks The cost of public*ion$ and souvenir5 for public sale are valued al the lower of th8 cost and nel realisable value after making due allowance for slow-moving items. Previously the cost of these items was charged lo revenue in the year in which the cost was incued, since the quantities on hand at the balance sheet dale were insufficienlty material to qUIre disclosure. 1.7 ContSnggnt liabilitl A contingent liabilty is identif1 and disclosed resulling from a possi1e obligatlon which will only be confirmed by Ihe (wjrrence of one or more uncertain future events not wholly within the Tnjslees. control, a present obligation where seitlemenl is either not considered probab. or the amount has not been communicated and that amount cannot be estimated rdialAy. 16-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting Pollctes and Key Judgem8nts 1.8 In¢omlng re$our Al incoming resources are rwnised once the H05Prtal has entitlem1 to the resources, il is probaNe that the resourcEs will be received and the monetary value of in(x)ming $ourCeS ¢an be rneasud with $[rf16nt religbility. 'Incoming resources from generaled funds" include donaions, legacies. yanls. investment income and sales lo visitors arKI other extemal users of the Ho$pilal'3 facilllies. 'Incoming resources from charItaa acllvitles. derSve from the Hospital's pursult of Its chariiable objects. Donations (including Grft Aid recoveries) are cognised when the Hospital has been nolifieé in writing of both the amount and settlement date, or wh&n they are received. In the event that a donation is subject to condilh)ns that require a level of performan¢e b6fore the Hospital 15 •nlitied lo th8 funds. the Income is deferred and not recognised unb'l eilhar those conditions are fvlly mel. or the fulfilmenl of Ihose conditions is wllY within the control of the Hospital and it Is probalAe thal ihose conditions will be fulfilled In the reporting period. Legacles are accounted for on a recelvable basis. Pecun18ry legacies are rewnlsed following formal nolrflcallon from the eslale. Residuary legacies are rec•ognised only en the Hospilal's inleresl can b8 m8a$ur8d, which is rK)rmally on want of probale. Grants receivatAe in respect ol expenditure incurred during the year affj brought into account provided they have been apwoved for paymont al thè year end. Dividends and interesl. bank deposit account Interest. and rents receNable ar8 brought into a¢¢ount on a receivable ba$is. Income from public v15iting and similar aclivitias is rocognlsed when recelved. 1.9 Resour¢es expended Liabilities are recognised as soon as there is a legal or construclive obligation committing the Hospital lo the exponditure, il 15 probaNe that setuement will be required and the amount of Ihe obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under heading5 Ihal aggregate all costs rdated to the Catery. The Hospital is not registered for VAT and accordingly expendiiure is shown inclusive of VAT. 'Costs of generaliNJ fvnds. MpriSe costs of attracting voluntary income. costs of ods sold for fund raising purposes, and costs of managing the investment properties. 17-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 A¢¢ounling Policie5 and Key Judgements "Charitable activities" comprise costs lo mainlain the charilable property and lo provide accommodation and weware for the Brothers. Sup1 costs, comprising salaries and office cosls. have been allocated to the acllvlty cost categories based on an e5tirnate of the time spent. 1.10 Ponsion schem For ellgible salaried employees the Hospitsl participates In the Church of England Pension Builder scheme wthin the Church Work8rs Pension Fund {CWPFI. Eligible employees wfb) joined the H05pllal up lo May 2021 ware &nlitled to bewme members of the Pension Builder Clas$i¢ section of tho scheme,, this is a deferred annuity scheme, whleh is 8 defined benefil 5ch8me. Sinco June 2021 new employees have been enlilled lo become members of the 8Gheme's Pension Build8r 14 secuon.. Ihis is a cash balance scheme and is also classeé as a définad benefft scheme-, il is similar to a definéd contrlbutlon scheme bul wlth a guarantee thal the retirement cash sum will not usually da58. The pens5on costs Charged against th8 surplus or deficli for the year represent the contrilwtions payable lo the scheme In respect of the accounting period. ff there were to a large ndIng deficit over a prolonged pen'od, additlonal contributions might become payable, allhough to date the CWPF has never sought ary such ¢onlrlbulbons. 1.11 Fund$ The Hospltal's permanent endowmnl funds are set oul in note 22 to the financial statemenls. They comprise the permanent endowment funds of the iwo constiluenl charities, the Hospltsl of Sl Cross Foundation and thè Almshouse of Noble Poverty Foundation. The income from the investment assots of the funds is unrestricted. The Hospital also has IhTre funds sel up under Recoupment Order5 issued by the Charity Commission to restore permanent endowmenl capital expended on major projects. Restricted funds are funds subject to specffic condrtions wlthin the objects of the Hospital and are sel out in note 23 to the financial slalements. Unreslricled funds are funds where no restrlcknons are placed on the use by the Hospital upon either the capital or the income and comprise: The Commander J S Bak Bequ851- a designated fund The Miss G M Bauer Bequesl- designated by the Trustees for use on arboricultur81 and hOrtlIra1 projects General fund- to pVIde the Hospital's w(king Gapilal. General funds are unrestricted funds which are available for use al the discretion of the TNstees in furtherarLce of the general objectives of the charity and whiGh have not been designated for oth8r purposes. 18-
The Hospltal of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Accounting Policies and Key Judgements 1.12 Key Judgements Certain reported amounls of assets and liabilities are subj1 to estlmales and as$umplion$. Estimates and judgements by management are continually evaluated and are based on historical experience and other factor$. includitvJ expectalR)ns of future events that are believed to be reasonable under the circumstance5. Judgements that have the most snifant effect on the amounts rQgnISed in Ihe financial stalemenls and eslimales that can caus8 a significant adjustment lo the carrylng amount of assets and liabilities wlhln th6 next financlal year Include: Investmenl property The inv&stment property valU*n ks reviewed annually ty th8 Truslees. Th& proportio$ are 5ts1ed al fair value with changes In the falr value belThJ recognised in the Statement of FlnanGial AGlivilies. Incom• from donatlons. grants and legacle• Pérnianenl funds 2021 Restrfcted Unre8trlct•d fund$ funds 2021 2021 Total fundg 2021 Total funds 2020 Donations Grants Legacles 1.321 17,700 6,688 66,490 8,007 84,190 2,245 51,084 Total donations and legacies 19,021 73.176 92.197 53,329 Income from fundralslng actlvltles P•mian¢nt funds 2021 Rostrlclod Unrestrlcted funds funds 2021 2021 Total funds 2021 Total funds 2020 Events Shop sales Tearoom sales 3.069 13.187 8,578 3,059 13.187 8,578 6,606 95 Total fundraising income 24,834 24,834 6,701 -19-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Investmont in¢ome Pernianont funds 2021 Restrict¢d Unrestrlcted funds funds 2021 2021 Total fund8 2021 Total funds 2020 Rent receivable Investment income 135.513 422,821 135,513 425.482 131,792 294,984 2,661 Total Investment Irorne 2,661 558.334 560,995 426,776 Incom• from charftable a1vItI•$ Pornianent funds 2021 Rutrlctod Unr88trScted funds funds 2021 2021 Total lunds 2021 Total fund$ 2020 Recoveries from Brothers Primary purpose trade Ancillary trade 155,164 50.856 45.388 155,164 50,856 45.388 160,931 6,639 3,662 251,408 2S1.408 171,232 Costs of gonoratlng voluntary Incom• Perniangnl funds 2021 RoStr1et Unre6trlctgd funds funds 2021 2021 Total lunds 2021 Total fund8 2020 Expenses of public visiting Costs of goods sold 3,664 5,225 3,664 5.225 2,564 3,437 8.889 8,889 6,001 -20-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMEHrs FOR THE YEAR ENDED 31 DECEMBER 2021 Investment management Costs P9angt funds 2021 Rgstricted Unrestrlcted funds tunds 2021 2021 Total funds 2021 Total funds 2020 Investment property repai Investment property management fees {a) Support costs (note 11) 17,545 17,545 13,233 8.435 14,873 9,499 23.308 9,499 23,242 9,010 8,435 41.917 50,3S2 45,485 la) Investment propety management fees charged lo pemianenl fun(Is relate lo the exploration of the devalopmenl potential ol som8 of the Hospiial's land holding5. Analysls of gxpgndlturo on ¢harltsble actlvltl Pemianont funds 2021 Restrlcted fund8 2021 Unrn8trlct•d funds 2021 Total fund$ 2021 Total funds 2020 Upkeep of hlstoric buildlng5 Brothers, welfare Public visiting and advertising expenses Volunteer expenses Costs of goods sold Profession21 fees Bad Debts Depreciation Governance costs {nole 10) 26,398 1,615 281.265 202.418 307,663 330,808 204,033 199,640 55.628 55.626 49,827 1,000 1,746 9,104 9,104 15,600 35,306 70,405 15,6(y) 35,31 70,405 34,397 68,483 28,013 669,724 697,737 685.901 -21-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 310ECEMBER 2021 Analysis of expenditure on charttable activltle8 by aGtivitles Dirg¢t Support costs 2021 Total funds 2021 Total funds 2020 2021 Upkeep of hlsloric tlIdIngS Brothers. welfare Public visiting and advertising expense5 Volunteer expenses Cost$ of goods sold Professional fees Bad Debts Depreciation Governance cost5 {nole 10) 288,649 172,327 27,826 19,014 31,706 27,800 307,663 204,033 55,628 330,808 199,640 49,827 1,000 1,746 9,104 9,104 15,600 35,306 15.358 15,600 35.306 70,405 34,397 68,483 55,047 564.170 133.567 697,737 685,901 10. Governance colts RtrIcted Unr8strirted funds funds 2021 2021 Total funds 2021 Total funds 2020 Audit fees Other professional fees Support eosls (note 11) 11,740 3,618 55,047 11,740 3,618 55,047 13,5 2,193 52,700 70.405 70,405 68,483 -22-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2021 11. Allocatlon of 8UPPOrt costs and overhgads InVlment property Charltable managernont activlti8s Governance (Note 7 (Notg 9) (Note 101 Total 2021 Clerical Salarios Office costs 9.499 69.559 8.961 49,075 5,972 128,133 14.933 9,499 78.520 55,047 143,066 2020 Cl8rical Salaries Offe costs 9.010 66,883 8,458 47,062 5,638 122,955 14,096 9,010 75,341 52,700 137.051 12. Staff costs Slaff costs were as fdlows.. 2021 2020 Wage8 and salaries Social security costs Pension cosls 284,559 22,043 24,643 284,418 22,586 14,802 331.245 321,808 The average number of employees during the year was 19 (2020.. 19). The full tim equivalent of these was 11 12020- 11 >. No employee receiv 8molumenls of m¢xe than £60.000 {2020: nill. Pension costs in the year were £24,643 (2020: £14,802>. The costs in 2021 were augmented by a oneryoff payment of £10,647 to correct a sPK)rtfall in em0yeS contribLJtions in previous years. -23-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 13. Pon8ion costs The Hospltsl participates in the Pension Builder Scheme section of the Church Workers Penslon Fund ICWPFI for lay stsff. The Schem8 is administered by the Church of England Pensions Board {the Board), which holds the assets of the schemes separatety from those of the Employer and the other participating employers. Pension Builder Classic (PB Classic) provkles a pension for members for payment from rebremenl, accumulated from ¢ontrlbulions paid and CnVerted into a deferred annuity during ernploym8rit based on terms $el and reviewed by Ihe Board from lime to time. Discretionary Increases may also be added. depending on Investment returns and other factors. Pension 8ullder 2014 IPB141 is a cash balance scheme that provides a lump sum whlch members use to provide benefits at retirement. Ponskjn contributions aro recorded in an account f¢x each member. DisGTelionary bonuses may be aéded befoTr tIrement, dopendlng on inveslménl returns and olher factors. The enI. uS any bonuses éeclared, Is payable, unreduced, from age 65. There is no sub-division of assets behveen employers in either section of the Penslon Bullder S¢h8me. The scheme Is ¢onshJered lo be a multFemployer scheme as descrlbgd in Section 28 of FRS 102. This is because it Is not possiblo lo attribute the Pension Builder Scheme's assets ar Ilabllilies lo specific employers and means that contributions are accounted for as rf the Scheme were a defined contribution scheme. The pensions ttists charged lo the Stslem8nl of Finan¢ial A¢tivitie$ in th8 year are the contributions payable12021'. £24.643. 2020: £14.8021. Contributions outstanding al the year•id were £10,797 {2020.' £nlll. A valuation of the Pension Builder Scheme is ¢arried out once every three yeats. The most recent was ¢arried out as al 31 December 2019. and was finalised in March 2021. The next valuation Is due as at 31 December 2022. For the PB Classic section. the valuation revealed 8 defKII of £4.8m on the ongoing assumptions used. The pension scheme administralors have estimated that the Hospilal'g share of the liabilities of the schemo is of the order of O.V/o of the total, which is les8 than £10,000. Al the most recent annual vIeW. the Board chose to grant a éis¢relionary bonus of 3f*/o following improvements in the funding position over 2021. There 1$ currently rrfj requirement f defiGil payments lo be made. For the PB14 sectlon. the valuation revealed a surplus of £S.Sm on the ongoing assumptions used. There is currently no requirement for deficit paymonls to be made. The legal structure of the scheme is such that rf another employer fails. the Hospital could become responsible for paying a share ol thal employe¢s pension liabilities. -24-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 14. Net gain$ on inv¢$trnent as¥el$ Pemianent funds 2021 Rostrfcted Unrestricted funds funds 2021 2021 Total funds 2021 Total fvnd$ 2020 Unrealised gainsl{losses} on revaluation of investment properties 295.000 295,000 240,000 Realised gainslllosses) on Investments Unrealised gainsl{losses} on Investments 1252,1891 1.511.344 77.041 271,829 1,860,214 665,509 1,806,344 77.041 271,829 2,155,214 653,320 15. Gros$ transfers betwn fvnds Pomianent Rostrlcted Unra8trlctod fund5 funds funds Approprfalions to pernianent and restricted funds 10,308 1,625 (11,933) 10.308 1,625 (11,933) Approprlatlons lo permanent funds represent the annual contribution5 made lo rocoupmonl orders of the Charity Commission. Approprlations lo restricted funds represent the annual conlribulion to the Extraordinary Repair Fund and are offset by a transfer from restrted funds due lo funds being de-reslricled following the conditions of the restrlction being met. -25-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMEwrs FOR THE YEAR ENDED 31 DECEMBER 2021 Tangibl¢ flxed assets Fixtures, flttlngs & plant Tolal Cost or valuation Al 1 January 2021 Additions On revaluations 529,598 11,615 529,598 11.615 At 31 December 2021 541.213 541.213 D¢prfrclatlon Al 1 January 2021 Charge for the year 78,593 35,306 78.593 35.306 Al 31 D8mber 2021 113.899 113,899 Net book valu0 Al 31 Oecember 2021 427,314 427,314 Al 31 December 2020 451.005 451,005 -26-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 17. Flxod a88et Invostment propèrties Investment properti05 Noble Poverty Investm¢nt propertiOS Hospital Total Cost or valuatlon At 1 January 2021 Additions Disposals On revaluations 4.892.000 929.000 5.821,000 244,10 51.000 295.0(K) At 31 December 2021 5,136.LJ)O 980.000 6,116,(K)O Net book value Al 31 December 2021 5.136,000 980,0 6,116.0 At 31 De¢ember 2020 4,892,000 929,Crt)O S.821,0 Invostment propertlo9 The investment properties were professionally Valued as at 310ecembef 2018 at open market value and the values were reviewed and adjusted as al 31 Decembgr 2021 In linè with Indexed growth in the residential property market. Herltage assets The herllage assets are the propety of ihe Hospital of St Cross Foundallon and Almshouse of Noble Poverty Found81ion jointly and comprise 25 Amshouses, the Church of Sl Cross, hall, gatehouse and ancillary buildings. and Sl Faith'5 Churchyard. The conservation of these buildings Is one of the Hosprtal's primary objectNes. The buildings We conslrucleé in eadier cenlurles and their original cost has long since been written off and are therefore held al £nil nel book value. No significant lyjllding unit has been added during the past sixty years. -27-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 18. Fixed a$s#t Invéstments Pormanent funds Restrlcted Unrestricted funds fund$ Total funds CCLA Fund8 at market value At 1 January 2021 Recoupmenls Additions Disposals Transfers Between Funds Transfers to Cash Change In market value 11,960.468 10,308 452,308 1,625 1,896.520 14,309,296 11,933 18.435) 8.435 18371 (8371 271,829 1,860,214 1,511.344 77,041 Al 31 December 2021 13.473,685 $30,974 2,175,947 16.180,606 19. Stocks 2021 2020 Goods for resale 11,145 11.145 20. Debtors 2021 2020 Trade debtors Oiher deblors Prepayments and ac(xsed income 8,520 3,178 2.059 494 2.042 13,757 9,504 -28-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2021 21. Credltors 2021 2020 Trade creditors TaxalK)n and so¢ial s8rity Olh8r creditors Accruals and def8rred income 54.220 5.163 1.402 66,343 82.317 S,567 18,876 36,339 127.128 123,099 Deferred income relates lo deposits paKI for future eventslweddings; the balance held al the erKI of the year was £5,294 {2020'. £7.9051. -29-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Pemiangnt gndowmont fund$ At 1 Jan Movement for At 31 Dé¢ 2021 the year 2021 Hospital of Sl Cross Foundation Almshouse of Noble Poverty Foundation 16.003,853 1.454.664 1,623,952 17,627,805 125,482 1,580,146 17.458.517 1,749,434 19,207.951 91, 93, 95 St Cross Road re¢oupmenl fund (a) Porter's Lodge recoupmenl fund (b) Brolhern, flats recoupment furKI (c) 114.585 80,S25 147,841 18,373 10,722 29,688 132,958 71,247 177.529 322,951 58,783 381.734 17.781.468 1,808.217 19,589.685 Movements on recoupment funds indvde the reqUId annual contrlbulion together 1h unreallsed gains and losses on the funds invested. a) Recoupment of expenditure on No's 91, 93 and 95 Si Cross Road (established in 1991- annual contributions of £2,083 to be made for 60 years). Income Can be used for the purposes of the Hospilal. b) Recoupment of expenditure on the Porterfs Lodge (established in 2003.. annual contributions of £2,100 lo be made for 40 years). Income Can be used for the purposes of the Hospital. ¢) Recoupment of expenditure refvrbishing the Brothers, flats lin 2006 the Charity Commission authori5ed a wthdrawal of up to £400,000 with annual contributlons to be mad8 ovgr 40 years). As al 31 Dmber 2021 £245,000 had been withdrawn {annual contribution £6,125). Income can be used for the purposes of the Hospiial. -30-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2021 23. Rostrictgd funds At 1 Jan Movemontfor At 31 Dgc 2021 the y•ar 2021 Extraordinary repair funds (a) John Hallon fund (b) Brothers, welfare fund (c) Frienls grant fund {d) 398.717 66,982 4,269 15,839 71.032 9,973 469,749 76,955 4.295 7,143 {8,6961 485,807 72.335 558,142 al Exceptional repalrs lo propety (Scheme of 5 November 1984, dause 46.. annual contributions of not less than £1,625). b) To provide for the Hospllal's general purwses for the bonefil and advanc8menl of the $oclal lrfé of the Brothers. ¢1 To provlde for the welfare of the Brothers through donations gfven through collection boxes. Donations tolalling £866 were received in the year and £840 dlsburseé. dl To Fyovlde for specffied repairs to the Hospital. Grants lotalling £17,000 were r8celvod in the year and £25,696 eXpered. 24. Unrestrlcted fund8 At 1 Jan Movoment for At 31 Dee 2021 the year 2021 Designalgd funds: Commander J S Baker Bequ8sI Mis5 G M Bauer Bequest Refurbishment Reserve 491,512 167,904 69,682 26.545 loo,0 561,194 194,449 100,000 659,416 1.628,897 196,227 855,643 250,891 1.879,788 Gener81 fund 2.288.313 447,118 2,735,431 Wilhin the General Fund an arnount of £100.000 (2020.. nlll is held in a refurbishment reserve for Ihe purpose of refurbishing the Brolhers. Ilats. 31-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2021 25. Analysis of not assats betw8en funds Pennanont Restrlcted Unrestrictèd funds funds funds 2021 2021 2021 Total funds 2021 Total funds 2020 Tangible fixed assets Fixed asset investment properties Fixed asset Inveslments Current assets Crodilors due within one year 427.314 427,314 451,(K)5 6.116.000 13.473.685 6.116,000 5,821,000 2,175,947 16,180.606 14,309,296 259,298 286.466 97,386 {127,128) 1127,1281 1123,0991 530.974 27.168 19,589,685 558.142 2,735,431 22.883.258 20,555,588 Analysls of net a980ts botwwn fund8 Iprfor yoar comparatlv•) Peanent Restrlcted Unrestri¢t•d funds funds funds 2020 2020 2020 Tot fund8 2020 Total funds 2019 Tanglble fixed assets Fixed asset inveslm8nl properties Fixed asset investments Current assets Creditors due wilhln one year 451,005 451,005 471,760 5,821,Crf)O 11,960,468 5,821,000 9,831,000 1,896,520 14,309.296 9,683,207 63,887 97,386 85,430 (123,0991 1123,099) 189,7801 452.308 33.499 17.781.468 485,807 2,288.313 20,55S,588 19,981,617 26. Analysls of changos in net cash At1Jan 2021 Cash flow At 31 Dec 2021 Cash at bank and in han¢J Cash held with invesknenl manager 24,158 63,724 210,184 {36,502) 234,342 27.222 Net Cash 87.882 173,682 261,564 -32-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 27. Flnanclal Instruments 2021 2020 Basic financial assets Basic financial liabilities 16,465,013 14,404,640 (121,985) 1117,5321 Baslc flnanclal assets are all Investrnents lexdudlng Investment propertlesl, debtors plus cash In hand minus prepayments. Basic financial liabilrties are all creditors due in less than one year plus creditors due in more than one year minus taxation payable. The enlty's Income, expense, gains and losses in respecl of finandal Instruments are summadsed below:. 2021 2020 Toial dividend and interest income for basic finandal assets Toial IIosse5ygain5 in respecl of ba51c financial assets 425.482 1,860.214 294,984 665.510 28. Flnanclal Commltmants Non<anc8llable operating lease rentals receable 2021 2020 Loss than ong year After one year and less than fiv8 years 34.489 563 49,795 13,219 35.052 63,014 The lease rentals receivable relates lo rent inenme receivable from the Hospital's Investment Properties. The amounts receivable are limited lo the nexl rent review dale for agricultural properties or the earfier of the lease end dale or break clause for other properties. 29. Commltrnents and contingencies There we no material ¢ommilments at 31 December 2021 or 31 December 2020. Therè were no conlingenl liabilitS al 31 December 2021 or 31 December 2020. -33-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 30. Rolated party transactlons and Tmstees. oxponsgs and romuneratlon No Truste• recelved any reMur311On or reimbursement of expenses from the Hospilal during the year. Mrs Felicity Pennycook. Mr Jonathan Cooke and Mr Robin Chute are also Tnjslees of the Frlends of St Cros5 Hospital Winchester. The Friends made a grant of £17,00012020'. £25,000) to the Hospilal during the year. Key management personnd re1ve{l total remuneration of £nil during th8 year {2020'. £nll). Durlng the year, tolal donatnS by the trustoes lo the charity amounled to £nil12020= £2451. -34-
The Hospltal of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 31. Additlonal prlor year comparatives- stat¢m¢nt of financlal aGtlvltio5 Pemianent Rostricted Unrestricted funds funds funds 2020 2020 2020 Total funds 2020 Totsl funds 2019 Note Incomo from: Donations, grants and legacies Fundraising activities Investment incom6 Charitable activities 25.404 27,925 53.329 85.584 6.701 424,034 171,232 6,701 426,776 171,232 28,463 436,910 302,719 2.742 Total Ineom• 28.146 629.892 658,038 853,676 Expendlture on: R81sing lunds.. Costs of generating voluntary Income Investment management ¢osts 6,001 6.001 15,610 16,475 29.010 45,485 82,326 Charllab18 a¢lltIeS 11,599 674.302 685,901 691,805 Total oxp•ndltur• 18,475 11,599 709,313 737,387 709,741 Net Incornlng {oulgoing) rèsources before inv•stm•nt gains (16.475) 16,547 {79,421) 179,3401 83,935 Net gains (losses) on inveslmenls 14 495,939 32,626 124.755 653,320 1.267.466 Nét Income beforè transf•rs Transfers botffien funds 479,464 49.173 45,334 573.971 1,351,401 15 10.308 1.625 (11.933) Nèt movement In funds Total funds at 1 January 2020 489.T12 50.798 33,401 573,971 1,351,401 17.291,696 435,009 2.254.912 19,981,617 18.630,218 Total funds at 31 De¢ember 2020 17,781,468 485,807 2,288.313 20,555.588 19,981,617 -35-