Charity numbgr. 202751 The Hospital of St Cross and Almshouse of Noble Poverty Trustees, report and Financial statements For the year ended 31 Decamber 2022
The Hospital of St Cross and Almshouse of Noble Poverty CoNTEs Page Roforenca and Admlnlstrallve Detalls of thg Charity, Its Trustees and Advisers Truste88' Report Ind¢p8ndent Auditorfs Report 9-11 Statemont of Flnancial Activitles 12 Balance Sh8ot 13 Statement of Cash Flows 14 Notes to the Financlal SL*am8nts 15-34
The Hospltal of St Cross and Almshouse of Noble Poverty REFERENCE AND ADMINISTRATIVE DAlLs OF THE CHARrrY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022 Charity regi$ter¢d numbor 202751 Registered office Hospital of Sl Cross. Sl Cr05s Road, Winchester. S023 9SD COOPtaVe Trusto95 Mr Jonathan Cooke {Chairman) Mr William Corbett Mr Christopher Anderson Irelireé March 20231 Mrs Rosemary Andreae (rellred March 2022) Mrs Gill Beck IPCCI Mr Christopher Higglns Mr Michael Killingley FCA Mrs Imogen Lyndon Skeggs laptKJinted March 2022) Mrs Felicity Pennycook ACA (Honorary Treasurer) Mrs Katherine Wake Dr Tim Foster Mr Jonathan Port (appointed March 2023) Nomlnatlvg Trusteas Cllr Fiona Mather (Winchester City Council) Mr Adam Rattray IWinch8Ster College - appointsd June 2021) Ex-officlo Trust8 The Master of St Cross: The Reverend Tery Hemming (retired Decomb8r 20221, Tho Reverend Dominik Chmielewski {appointed Decombor 20221 The Dean of Winchester: The Very Reverend Catherine Ogle The Right Worshipful Mayor of Winchester. Cllr Vivian Achwal {2021120221. Cllr Derek Green {2022120231, Cllr Angela Clear12023) Clerk to the Trustees Mr5 Catriolla Morley Bankers National Westsninster Bank plc, 105 High Street, Winchester. S023 9AW Sollcltors Godwins, 12 St Thomas Street, Winchester, S023 9HF Investment Managers CCLA Inveslm8nl Manag8ment Ltd, Senator Hous8, 85 Queen I[tOria Street, Loneon, &C4V 4Fr Property advisors Carter Jonas, 9a Jewry Street. Winchester. S023 8RZ Audltor Crowe U.K. LLP, Aquis House, 49-51 Blagrave Street. Reading, RG1 1PL
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Prfncipal actlvltles and alms The Hospital's principal activity continues lo be the prowsK)n of a INing community which offers a home and haven to eldedy gentlemen on the premises of °England's oldest and most perfect Amshouse" and to provide a welcome to all who wish to Vi51t the Hospllal and enjoy ils surroundings. The Hospital wa$ originally founded around 1132 by Henri de Blois, Bishop of Winchester. Its aims are to maintain the property, care for the Brothers, welcome visitors and continue the worship al the Church of St Cross for the Brothers and. for the past 500 years. the parishloners of St Faith. Revlew of xhlevements and perfomiance for lh8 year Herltage Proff le After years of signtficant disruption due to the Covid p8ndemic and restrictions, visitor numbers recovered significantly, albeit not yel to the levels of 2019. To broaden ils heritage profile the Ho$pital became a member of Historic Houses which wll provide new marketing outlets and opportunities. The Hospital receives a number of enquiries each year relating to its history. These include question3 from families whose relatives might have been TIdentS in the past and ademI¢S researching specific areas such as stained%lass windows or medieval floor tiles. The Hospital draws on a number of resources lo hdp respond to such enquiries induding dedicated professionals (such as archaeologists and arohileots), the Hampshire Records Office and the Hospttal's own in-house staff. The proje¢l to commemorate the Hospital's 900 year annNersary (in 20321 is progressing,- a list of Ideas was drawn up which, once fillalised, wrll be pul through a voling process. In September the Hospital look part in the National Heritage Open Days scheme, which offers free enty for one day in order to celebrate and promote the UK'S history and culture. The Hospital of Sl Cross continued lo be a site of interest to film makers. Location scouts are always impressed ty the well conserved buildings whth provide a fantastic unsFX)ill historic setting. The Hospital's succes5 in SUPptIng the conseNation of swtfts was highlighted on the BBC'S daily programme. The One Show. A feature, presented by Ihe naturalist, Chris Packharll, was filmed at Sl Cross In August which highlighted the work of the Hampshire Sfts group, who have installed 35 nest boxes al the Hospital. The number of breeding birds rearing young at the Hospital increased again in 2022 compared to the previous years- making St Cross a desirable Itmxlion for filtn makers and Swrfts alik81 Revlew of charitable actlvitles Buildings conserwalion The church roof Is nearing Ihe end of its useful lrfe. Extensive, and costly, repairs were originally budgeted lo lake place in 2021 buL with advice frorn the Hospttal's archrf(ect5, lemwrary repairs were carried out on the church south Iransepl, sacristy and SOLJth chancel roofs, which shoulé enable their replament lo be delayed until later in the 2020s. De5plte this. there has been a heavy programme of repairs during 2022, at a cost of some £250,000. This has induded £98,000 of nttessary paIrS on our let properties on St. Cross Road,. £34,000 on replacing the paving beneath the Beaufort Tower {half the cost of which Wds covered by a generous donation by the Friends of Sl. Cross Hospital in 2021).. £11.(KJO on the refurbishment of the Brothers. kitchens.. and £26,OfX) of professional fees in respect of the planned refurbishm8nl of the Brothers, flats, referred to later in this reporL
Tho Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Welfare and visitors 5 new Brothers look up reSIder at St. Cross during 2022. while one left lo lake up residence in a ursing home- sadly one Brother died in January 2022 and another in January 2023. The Hospital had about 5,000 paying vi5ilors in 2022, well ahead of the 3,500 and 600 in the tho previous, panéemic affe¢ted years: il is however slill well below the 8.O¢X) visitors in 2019. There were 16 weddingg al Sl. Cross during the year. and a successful Michaelmas Fair in September. Friends ofst Cross Hospilal The Friends of Sl. Cross has about 800 irKINidual rnembers, a signrficant increase over the 720 al the end of 2021. They provid8 a wide rang8 of educational and fvnd-raising activities both within and outside the premises of the Hospital. During 2022 the Friends generously donated £15.000 lo the Hospital as a contribution lo the project lo provide disabled access lo the Brethren's Hall, work on which is expected to be undertak8n during 2023. Flnancld revlew Financial aclivities The Hospital barely broke even in 2022. wrth a surplus of £10.000 before investment losses {2021 surplus.. £172,000). This result was broadly in line with budget. albeit below the level required to enable the Hospital to sustain the programme of necessary repairs required lo r(s helllage buildings in the medium lo long lemi. A combination of general inflation and ¢osUy repairs have been the main contributors to this result, and 2023 is 8xpected to show a frjrther deterM)ration in financial performance as a result of higher ulilily costs. As a result of these ¢osl pressures, resour¢e$ expended during Ihe year increased by 22Yo lo £920,000 {2021= £757,ooa).' about half the increase was due to the repairs lo let propertie5 referred to above. Ba18nce Sheat Net assets dediMd by 8Yo to £21.0 million (2021: £22.9 million). primarily as a resutt of a weaker performance by the Hospital's investment portfolio, managed by CCLA. The value of the portfolio fell by 12% 10 £14.3 million, as a result of underperfomiance in our equity. property and bond portfDIios. The high level of inflation and the risk of economic recession make the investment outlook for 2023 somewhat un¢Èrtain, aggravaled by Ihe ntinuIng war in Ukraine. The Iruslees monitor CCLA'S perforfflar regulady.. over the past 3 and 5 years our CCLA portfolios have OLrtperfomed their benchmarks. Cash al bank and in hand at 31 December 2022 was £245,000 {2021.. £262,000).
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Resources and R8Sgtves policy (X the lolal fvnds at 31 December 2022 of £21.0 million, £18.0 million was pemianent endowment and £504,000 restricted funds. Unrestricted funds ware £2.5 million of which £763,tXX) were designated fvnds. The balance relates lo the General Fund which includes £391,000 of tangible fixed assets (mostly new visitor toilets and boilers over the last five years). The Trustees, policy is lo plan expend[re wrthin availa1e resources whilst retslnlng resetves to provide a degree of flexibility to meet the cost of major repairs. These can be signrfKant when malntalning ancient Grade 1 lisled buildings. Investn7entpolicy The foundation buildlngs and the investment properties are managed to best effe¢l wtlh the ald of quinquennial inspections and reports. Mon81ary investments are currenuy h81d In common investment fund5, where the fund managers praclise socially responsible investment. The policy apFAicable to equity-based Investrnents is lo produce the best income compatible with longer-temi capital growlh and security. The policy applicable lo fix6d interest and variable inlerest-bearing investments is lo aim for maximum incorne subject lo protection of capital (such inve5trnents a made into highly rated bonés or deposilsl. Outlook and futur• plans The Hospital will continue the aims as slated above. namely the maintenance and refurbishment of the fabric of the (*urch and hospital buildings, and the weffare of the Brothers. Financial outlook The Hospital is budgeting to intsjr a defictt in 2023. Utility costs are expected lo be as high as in 2022 as a result of the high wholesale ga5 prices at the lime ¢ontrads were renewed in the second half of last year,. general inllalion has continued to pul pressure on the Hospital's other costs. In addition a subslanlial programme of necessary repairs has been scheduled. Refurblshmenl of&others' flats Planning ¢onsent for Ihls major project was recelved during 2022, and work on the refurbishmenl of the first of 5 staircases ComMend in April 2023 and should be completed during the aLrtumn. The whole refvrbishmenl project wll extend over several years. firstly because of the logistical constraints of housing all the Brothers while th@ work takes place, and se(x)ndly because it is beyond the ability of the H05pilal lo fund the work solely fn)m its own reserves. The latest 6slimate of the cost of the project is about £3.5 million. During 2022 the Charity Commission approved the Trustees, quest that up to £1 mlllion of Ihe Hospital's pemianenl endowment can be used towards funding some of the refurbishmfjnt work. Furtherrnore, the Trustees have decided that. in years when a surplus has b8en achieved, part of that surplus should be transferred to a eslabli5hed 'RefvTbishment Reserve. within unrestricleé funds lo conlrilwle further to Ihe ¢ost of the project. The near break-even financial result for 2022 means that il has not been possible to augment the £100.000 which was appropriated in 2021 to thi5 reserve.
The Hospltal of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Hospital can afford lo fund only part of the full cost of refurbishmenl from Its own resources.. the Trustees are therefore considering how bosl to raise the additional fvnds which will be required. Landscape and Conservation The Landscape and Conservation Masterplan fv the garden. park and water meadows at St. Cross Is still in the early stages of development-, during 2022 discussions were held wilh an experienced planning consultant who focuses particJJlarfy on heritage and conservatK)n, to enable the Trustees to gain an insight inlo the demands of the planning pro¢ess. It Is hoped thal progress can be made in 2023 to get Ihe plan lo a stage where it car) be approved by the Trustees. The removal of the ash and other diseased Irees along the stream edge is now $dVIed to take place in Autumn 2023 and It is hoped that there will be funding available lo help with the costs of thi5 as il will greatly enhance the ¢ondltions of the stream for the very rare Southem Damseffly. Public benefrt and the relief of poverty The two fr)undations of the HospFtal of St Cross (established 11321 and the Almshouse of Noble Povety (established 14551 were founéed lo provide relief for the FX)or and needy, through the provision of accomrnodalion and sustenance. The Trustees of the (now combined) foundations are also fully committed lo the maintenan¢e in their original style of the Hospital's unique set of grade- one-lisled medieval buildings and have in place a continuing programme of repair and improvement. The Hospital is al the heart of the Ial communty. As an historic almshouse, it provides a¢commodalion for tsventy-five eldedy men. The visitirKJ pubtio a wel¢ome for 363 days in the year lo visit the ancient buildings, walk in the gardens. requ6sI the Wayfarerfs Dole and take refreshment provided by the Hospitsl volunteers in the medieval Hundred Men's Hall. Many of the areas of public benefit set out In the following paragraphs were curtailed or cancelled in 2020 and the first part of 2021 because of the COVID-19 restrictions,. il has been pleasing to see most resumed durlng 2022. Tho Hospfcal enjoys an 8xcellent asstKiation with the Parish of St Faith, who hav8 worshipped al Sl Cross since 1507 wh9n their own church fell into disrepair. The Parish regard St Cross Church as their prinopal place of worship with a typical Sunday attendance of well over 100 worshippers. The Hospital's new Master, the Reverend Dominik Chmielewski, is also rector of the Parish. The Parish do much to assist in the upkeep of the church. In addition the Parish hold the annual local fete, which is enjoyed by up to 2000 people and was resumed in 2022. in the grounds of the Hospital. The church and other buildings within the Hospital are in regular use by the Friends and other local groups for worship, concerts, eduealional purposes and events. There is a very strong musical tradition which continues to Ilourish wlh a very fine church organ and an actNe church ct1r. The church is in high demand for cOnrts and musul perf0mlan8. Ouring October 2022 the Brothers organised 2 series of successful lunchtime concerts {'Perfecl Pitch'l in th8 church; the programme resurlled in April 2023, with a concert planned each week until (klober. The Brothers, Library is equipped lo provide a fleXie education room. School parties Gan visit lo learn about the Hospital using a carefully-designed aclivity programme which is based on th8 current Key Stage 2 school curriculum. These school visits can be managed in conjunction with Hampshire and Isle of Wight Wildlrfe Trust {HI1. HI conduct educational wildlrfe tours of the Water Meadows which are followed by a visft to the Hospital. Local sctriools and a higher education college use the church and mediev21 halls for services and degree ceremon$.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEM8ER 2022 Outside the main sile, the Hospital provides several other sign]ficant facilrf(ies which help to nurture a strong sense of local community. These indude the provision of the Parish Hall and 80 traditional allotments in a b8aulrful setting by the rNer. The Parish Hall is in (y)nstanl communty use for the local pre-school nursery, Girl Guides, BroWleS and other local activities such as yoga and danc6 ¢lasse8. The meadows which surround the Hospital provide a pea(thl setting in which the public are able to walk and relax free of charge. sin the pandemic Ihore has been a substan1121 Increase in the number of dog walkers using the land and Sl. Cross hosted a public presentation in conjunction wlth Hiwwf in October 2022 to infomi the public of the IMpanCe of keeping (Jogs on leads around livestock. The presentation coincided with the end of Hiwwfs ten year fami tenancy on Ihe land al St. Cross, and enabled them lo share their successes in improving the habitat 2nd greatly increasing biodiversity in the park and meaéows over the past decade. The new lenary has been taken over by a neighbouring landowner who will continue to manage the lané wth careful grazing and lo promote wldlife. We hope to be able lo resurface a section of the footpath which becom&s very muddy in the winter months and funding for this is currenuy being investigated. Adjacent lo the meadow, the Hospttal lets its land to the I1 SL Cross Symondian5 Cricket Club where regular malchos are held for both adult and Yrth (x¢ket. To keep itself current the Hospital is also now engaging more llY with social media ouuets to provide interesting conlenl and updates and it continues to improve Its websrte. Following the public presentation in October 2022 8 page was added to the website to provide a link to the details discussed al the event and give general information about the water meadows and the importance of og management around livestock. The Hospital records since its origin81 foundath)n are documents of nsiderable historical inl8re5t and importarKe. To reduce the risk of their loss or destwction, the re¢ords are held and preserved by the Hampshire Record Office and are available for publ view within certain limitations lo protect individual prNacy. Plans are in pl8co lo ntinue adding lo the archives. structure. governance and management Governing doGument The Hospital of St Cross (the Hospital) is a registered charity whose objects are set out in the Charity Commission Scheme dated 5 November 1984 (Ihe Scheme,). as varied by the Scheme of 14 March 1990, an Order of 1 November 2006. a Memorandum of 5 September 2006 and Resdutions of 23 June 2009, 20 March 2012 and 23 March 2022. The 2022 Resolution amended the Schem8 lo reflect the Charity Commission's Gonsent to pem)tt the Hospital to expend part of its permanent endowment. There are Iwo foundations, the Hospital of Sl Cross and the Almshouse irf Noble Poverty. The Hospital's property and assets are owned by the iwo foundations as the Corporation of the Master and Brethren IBrolher51 of the House or Hospital of Sl Cross and the TTUSlees administer it on behalf of the Corporation. The Trustees, responsibilities for applicab.on of Income are set out in the Scheme. The first such responsibility is lo defray out of the income of the Hospital the (x)st of maintaining the property and all other costs payable in respect of th8 propety and all the proper costs of administration and rnanagomenl of the Hospital. Subject lo the payments aforesaid, the Tnjslees shall apply the income of the Hospital for the benefit of the Brothers in such manrw as the Trustees think fil.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees The names of the Trustees who s6rv8d durfng the year and to the date of this report are shown on page 1. Co-oplalive Trustees are appointed by the Tnjstees and serve for five years. One nominallve Trustee is appointed by Winchester City Council and serves for four years. Thg other nominative Trustee is appointed by the Warden of Winchester College. The Trustees meet quarterly and have appointed commlttees covering finaTr, property, risk management, visitors and Weare. Each Trustee usually sils on kn committees. In December 2022 the Reverend Tery Hemming retired as Master and was replaced by the Reverend Dorninik Chmielewski, who is also the rector of the Parish of St. F811h's. The trustees are grateful for the outstanding role fulfilled by Tery Hemming during nearly 3 years in th8 role, parb'cularly in steering the Hospital through the difficult period of the COV parKlemic. Trust8è recrultment Co-oplative Trustees are recruited afler a thorough selection and interview process Wh ensures that a balance of relevant skills is maintained across the Board. Trustee tralnlng Each Trustee, upon appointrnenl, rec81V8s a Trustse's welcome and induction pack. indicating the range of their re5ponsibililie5,' in addition some of the Trustees allend annual seminars on accounting for charities and recent charity legislation and praclice. Al Trustees a$0 receive copies of th& magazine, Governance, which provides essential information for effective Trustees. Organisational management Under the Scheme, responsibility for the management and control of the Hospital and the Brethren rests with the Trusleeg. The day-Ii>day nJnning of the Hospital, the maintenance of the premises and management of the employees is delegaled lo the Clerk lo the TrLJ51ees, under the general supervision of the Trustees. The Master of St Cross {himself a Trustee) is charged th the pastoral welfare of the Brethren. Brothers, accommodation is kept to a hh standard and advertised regularly to ensure that any vacancies are filled by suitable appInts. Rlsk management The Trustees have examined the principal areas of the Hospital's operations and considered the major risks faced in each of these areas. The Flisk Management Committee biannually establishes, assesses armi Ixlegorises all risks. In the opinion of the Trustees, the Hospital has estaiAished resources and review systems which allow these risks lo be mitigated lo an acceptable level in daY-toaY operations. During the COVID pandemic, a standing o)mmittee of Trustees haé been established and mel regulady online to review the latest guidance and information to enable il lo take whatever action is necessary to keep the Brothers and staff safe. This committee was disbanded in March 2022 as, following the lffting of COVID reslricttons, tt was no longer required.
The Hospital of St Cross and Almshouse of Noble Poverty TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Maintenance of IncMe streams is vital in order to continue to meet the Hospital's objects. Reserves are invested in a mix of stock market investment fvnd5 and investment properties to spread risk whilst producing a regular incorne stream. Trustees work wtth the Investment Managers and Property Advisers to ensure that an appropriate asset allocation is maintained. The Trpair and safeguarding of Grade 1 listed medieval buildings is )5Y arKI good maintenance is an important part of this. All Heritage buildings are Sublt lo quinquennial inspection and there is a Contirbual programme of repair and improvement. Regular insurance reviews are carrfed out. Annual fire risk assessments are Carried out and the Hospital works dosely with th8 local Fire Service lo ensure quid( and effective access in the event of an emerg8ncy. Thg Hospital also complies with Ihe lalesl Health and Safety Management System backed by regLJlar internal and external audits. The easing of COVID restrictior)s has facilitated a retum to work on the list of buildiw improvements which will further Improve the accessibility and safe enjoyment of th6 Hospital site. Trustees. responslbllltles for the financlal stat8rn8nts The Trustees are responsible for preparing the Trustees. Report and the financial slalemenls in aCCordare with applicable law and United Kingdom A(OUnting Standards (United Kingdom Generally Accepted Accounting Practi). The law applicable to charilies in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of th& slate of affairs of the charity, arKI of the incoming resources and application of resource of the charity for that period. In preparlng these financial slalem8nts, the Iruslees are required to= Sele¢l suitable accountlng policies and then apply them consislenuy., Observe the methods arKI principles in the Charities Statement of Recommended Practice," Make judgements and accounliro estimates that are reasonable and prudent,. Slate whether applicale UK Accounting Standards have been followed. subject to any material departures disdosed and 6xplained in the fInarla1 statements,. Prepare the finallcial statements on th6 going concern basis unless it is inappropriale to presume Ihat the charity will continue in operation. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's webs(ce. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislatkon in other jurisdictions. The Trustees are re5pon5ible for keeping proper accounling records that are sufficient to show and explain the charity's transactions ané disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements cornply with the Charities, Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the provisions of Ihe Scheme. They are also responsible for safeguarding the ass6ts of the charity and hence for taking reaSOnae steps for the prevention and detection of fraud and other irregularities. The report was approved by Ihe Trustees al their meeting on 20 June 2023 and SIgr on their behalf by.. airman
The Hospltal 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 2022 Oplnlon We have audlled the firkgncial statements of The Hospital of St Cross ar¢d Almshouse Poverty I'the charity'l for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet. the Ca5hflow Statement and notes to the financlal statements. including significant accountillg policies. The financial reporting framework that has been aprdied in their preparation is applicable law and United Kingdom Accounting Starards. including Flnancial R8porting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingdom GerallY Accepted Atxx)unling Practice). In our opinion the financ4al statements: give a true and fair view of the state of the charity's affairs as al 31 December 2022 and of ils income and expendilure. for the year then ended,. have been properly prepared in accordance wilh United Kingdom G8nerally Accepted A¢¢ounting Practice- arté have been prepared in accordan(% wlh the wuirements of the Charities Act 2011 Basis for opinlon We Conducted our audit in accL)rdance with Intemalional Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities Urer those standards are further described in the Auéilor's responsibilities for the audit of the financial statements section of our report. We ar@ independent of the charity in accordance wilh the ethical requirements that are relevant lo our audit of the financlal statements in the UK, including the FRC'S Ethical Standard. ané we have fulfilled our other ethical responsibilities in a¢¢ordance these requirements. We believe that the audit eVIder we have obtained is sufficient and appropriate lo provKle a basis for our opinlon. Concluslons relatlng to golng concern In auditing the fin8nci81 statements, we have concluded that the tnjslee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performaé, we have not idenlrfied any material uncertainties relating to events or conditions that, individually or collecttvely, may cast sigr¢Tficanl doubl on the charity's ability to continu& as a going concern for a pericd of at least twelve months from when the finanryal slalements are authorised for issue. Our responsibilities and the respon5ibililie$ of the trust wth resPt to going concem are described in the relevant sections of this report. Other information The trustees are reswnsible for the other information contained wtthin the annual retX)rt. The other information comprises the information induded in the annual rerK)rt, other than the financial slalements and our audilorfs report Ihoreon. Our opinK)n on the financial slatetnents does not cover the other infomialion and, except lo the extent otheTrvise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomialion and. in doing so. consider whether the other information is Materially inconsislenl with the financtal statements or our knowledge obtained in the audit or otheiSe appears to be materially mis5taled. If we identify such material incongislencies or apparent material misslalements. we are required to delemiine whether this gives rise lo a materlal misslalemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required lo report that fact. We have nothing to report in this regard.
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 2022 Matters on whlch we are requlred to report by excgption We have nothing to report in respect of the follovAng mattors in relation to which the Charities (Accounts and Report51 Regulations 2008 requires us to report to you 'rf, in our opinion- the information given In th& financial stalem8nls is inconsT51ent in any material respg¢t wlth the Iruslees. report,. or sufficient and proper acc¢)unling records have not been kept by the tharity,. or the finanaal slalement5 are not in agreement wth the accounting records and returns,, or we have not receNed all the infOatiOn arKI explanations we require for our audit. R9spon$ibllltles of trustees As explained more fully in the truslees. responsibilities statement sel out on page 8, the trustees ar8 responsible for the preparation of the financial slalements and for being satisfied that Ihoy give a tru8 and fair view, and for such internal control a$ the trustees determine is necessary to enable the preparation of financial slalements that are free from material misstatement, whether due lo fraud or error. In preparing the financlal statements, the trustees are responsible for assessing the charity's abilty lo continue as a going concern, disclosing. as applicale. matters related to going concern arhd using the going cOrer basis of accountlng unless the trustees either intend lo liquidate the charity or lo Cease opgrations, or have no realistic altematwe but lo do so. Audltor's responsibilities for the audlt of the financlal statements We have been appointed as auditor under section of the Charrt18s Act 2011, and rep(t in accordance with the A¢ts arld relevant regulations made or having effect thereunder. Our objective5 are to obtain reasonable assurance ab)ut whelher the financial statements as a whole are free from material misstalemenl. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of assrare, bLrt is not a guarantee that an audit conducted in accordance with ISAS (UK) wll always delecl a material misslalemenl when it exists. Misstatements can arise from fraud or error and are conSided material if, inéividually or in the aggregate, they could reason2tJy be expected to inffuence the economic decisions of usors taken on the basis of these financial statements. Details of the extenl to which the audit was considered capable of detecting irregularities, including fraud arKI non-compliance with laws and regulations are sel out below. A further description of our responsibilities for the audit irf the financi81 statements is located on the Financial Reporting Council's wobsile al.. www.frc.or .uklaudilorsres nsibililies. This descripliorb forms part of our auditor's rewrt. Extont to which the audli was consldered capable ol detecting irregularities, Including fraud Irregulartlies, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the finanGial statements from irregularities, whether due lo fraud or error, and discussed these between our audit team members. We then designed and perfomied audit procedures responsive to those risks. induding obtaining audit evidence sufficient ané appropriate lo provide a basis for our opinion. We obtain8d an understanding of the legal and regulatory frameworks within which the charity operates, focusing IhDse laws and regulations that h8ve a direct effect on the determination of material amounts and disclosures in the fillancial statements. The laws and regulations we considered in this context wer8 the CharitS Act 2011 together yth the Charities SORP IFRS 1021. We assessed th8 required compliance wth these laws and regulatM)ns as part of our audit procedures on the related financial slalemenl items. 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 2022
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 specific income streams and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing relevant income with agreement to supporting documentation, 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
11 July 2023
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.
- 11-
The Hospital of St Cross and Almshouse of Noble Poverty STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 Pernianenl Restrlcted funds funds 2022 2022 Unrestrlcted Total funds funds 2022 2022 Total funds 2021 Note Incomefrom: Donations, grants and legaci88 Fundraising activities Investment income Charfcable activttles 1,361 51.126 52.487 92,197 28,289 567,142 279.077 28,289 570,024 279.077 24,834 560,995 251,408 2,882 Total Income 4,243 925,634 929,877 929,434 Expendlturo on: Raising funds.. Costs of generating voluntary income Investment management costs 15,371 15.371 8,889 129,020 129,020 50,352 Char(f8ble activf£les 10,887 764,850 T15.737 697.737 Total expenditure 10,887 909,241 920,128 756,978 Net incoming (outgoing) resources before Investment galns (6.6441 16.393 9.749 172,456 Net gains (losses) or) investments 14 11,546,793) (49.614) (257,248) 11.853,6551 2,155.214 Net income before transfers Transfers between funds 11.548.793) 156,258) (240.855) (1.843,906} 2,327,670 15 1,625 {1,625) Net movèmènl In funds 11.546.793) (54,633) {242.480) (1,843,906) 2,327.670 Recon¢lliatlon of funds: Total funds at 1 January 2022 19,589.685 558,142 2,735,431 22,883,258 20,555,588 Total funds at 31 December 2022 18,042,892 503,509 2.492,951 21,039,352 22,883,258 12-
The Hospital of St Cross and Almshouse of Noble Poverty BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note Fixed assets Tangible assets Investment Properties Investments 16 17 18 391.233 6,186.000 14,258,576 427,314 6,116,000 16,180,606 20,835,809 22,723,920 Curronl assets Stocks Debtors Cash al bank and in hand 19 20 26 8,825 17,435 245,405 11,145 13,757 261.564 271,665 286,466 Creditors: amounts falling due within one year 21 168,1221 1127,1281 Net current Iliabilitigsllassets 203,543 159,338 Net assets 21.039.352 22,883,258 Charily funds Permanent funds Reslricled funds Unrestricted funds 22 23 24 18,042,892 503,509 2,492,951 19,589,685 558,142 2,735,431 Total funds 21,039,352 22,883.258 The financial slalemenls were approved by the Trustees al their meeting on 20 June 2023 and signed on their behalf, by-. Jona airman Fali¢ity Pennycoo Honorary Treasurer The notes on pages 1510 34 form part of these financial stalemenls. 13-
The Hospital of St Cross and Almshouse of Noble Poverty STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Note Cash flows from operating activitles Net irwme (oulgoings) for the y&ar {from Statement of Flnanoial Activities) 9,749 172,456 Adjustment for. Dividends, interest and rents from investments Decr8asel{Increase) in stock Decreasel{Increase) in debtors (Decreaselllncrease in creditors Depraciatiorb of tangible fixed assets (570,0241 2,320 {3,6781 {59,0061 36,081 (560.9951 {11.1451 14.2531 4,029 35,306 N&t cash provided by operating activities (584,558) 1364,802) Cash flov from Investlng actlvltles Purchase of fixed asset investments Transfers to cash from illveslmenls Purchase of tangibl8 fixed assets Disposal of tangible fKed assets Dividends, interest and rents receivable {1.6251 (11.9331 837 (11,6151 570,024 560,995 Nel cash used in investing a¢tivities 568,399 538,284 Change in cash arKI cash equNalents in the year 26 (16,1591 173,682 Cash and cash equNalents brought fornvard 261.564 87,882 Cash and cash equivalents carried fojward 245,405 261,564 -14-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMEHrs FOR THE YEAR ENDED 31 DECEMBER 2022 Accounllng Pollcles and Key Judgemer 1.1 Basls of prgparation of financial statements Thet financial slalemenls have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their ac(x)unts in accordance with the Financial Reporting Siandaré applicable in the UK and Republic of Ireland {FRS 1021 (effective 1 J2nuary 2015}- (Charities SORP (FRS 102)), the Financkgl Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) and the Charities Act 2011. The Hospital of St Cross and Almshouse of Nobl8 Poverty meets the definition of a public benefit entity under FRS 102. Assets and liabililies are initially recognised al historical cost (K transaction value unless othejwise stated in the relevant ac¢ounling policy. 1.2 Going concorn The Trustees conslder that there are no material UnrtaInlieS about the Hospital's ability lo continue as a going concem. The most signrficanl areas of uncertainly that affect the carrying value of assels held by the Hospital are the level of inveslrnenl relum and the perfomiance of investment markets. 1.3 Tanglble assets Heritage assets The freehold properties described in Note 17 on page 27 are not included in the balance sheet al a monetary value as neither their costs, which have been fully written off, nor their market values are available. Signfficant improvements lo the fitting out of heritage assets are capilalised where appropriate as fixtures and fittings. Fixtures, filtsngs and plant Indiviéual assets costing more than £5.000 are capi181ised 2nd included al cost, including any incidental costs of acquisition. Tangible fixed assets are staled at Cost less depreciation. Depreciatiorn is provided al rates calculated to WTlte off cost of re assets, less their estimated residual value, over their expected useful lives on the following basis.. FLureS & Fittings - 15 years straight Ilne 15-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting Poli¢i¢s and Key Judgements Investment 0p6eS Investment properues are induded in the balance sheet at Ih8ir open market values by a professlonal revaluation every five year5 and by the Trustees in the intervening years. The surplus or defut on revaluation of individual properties is transf8rred lo the permanent endowment fund via the Statement of Financial Actniib"es. Depreciation Is not provided in respect of freehold investment properties, in accordance with Section 16.. Inveslment Propety of FRS 102. 1.4 Inve8tments Investments are a fomi of basic financial InSlent and are inilialty rewgnised at their transaction value and gubsequentty measured at their fair valLse as al the balan¢e sheet éale using the dosing quoled market pric6. The slalement of financial activllles includes the nel gains arKI losses arising on the revaluation and disposals throughout the year. Th8 Hospital does not ac4uire put options, derfvatives or other complex financial instruments. Th@ main form of finantxal risk faced by the Hospital is that of volatility In equty markets and investment markets due lo whler economic conditions. the attitude of investors lo inveslrnent risk, and Changes in sentiment Conrning equities and wllhin particular sectors or sub sectors. 1.5 Rgalisgd gains and losses All gains and losses are taken to the Ststement of Financial Aclwitie5 a5 they arlse. Realised gains 2nd losses on investments are calGulaled as the drfference between sales proceeds and their opening carying value or their purchaso value rf acquired subsequent lo the first day of the financial year. Unrealised gains and1055es are calculated as the difference between the fair value at the year end and their carrying value. Realised arKI unrealised investment gains and losses are combined in the Statement of Financial AclivitTres. 1.6 Stocks The cost of publications and souvenirs for public sale are valued at the lower of the cost and nel realisable value after making due allowance for slow-moving items. 1.7 Contingont liabilities A contingent liability 15 identtfied and disdosed resulting from a possible obligation which will only be wnfirmed by the occurrence of one or more uncertain future events not wholly within the Truslee5' control, a present obligation where settlement is either rt considered probable. or Ihe amount has not been communtcated and that amount cannot be e$limated reliably. -16-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting Pollcles and Key Judgements 1.8 Incomlng resources All incoming resources are rocognis8d once the Hospital has entitlement to the resources, it is probable that the resource5 wll be received and the monetary value of incoming resources can be measured wlh sufficient reliability. 'Incoming resources from generated funds" Include donatlons. legacies, grants, investrnenl income and sales to visitors and other external users of the Hospital's falItieS. 'Incoming resourc4s from charflable activities" derive from the Hospital's pur5uiI of its charrtable objects. Donations {including Gfft recovenes) are recognised when the Hospital has been nolrfied in writing of both the amount and settlement dale, or when they are received. In the event that a dortation Is subject to condith)ns that require a level of performanco before the Hospital is entided to the funds. the income is deferreé and not recognised until either those conditions are fully mel. or the fulfilment of those conditions is wholly within the control of the Hospital and it is probable that thjse conditions wll be fulfilled in the reporting period. Legacies are accounted for on a receivable basis. PeGuniary legacies are regNIsed following formal nolrfication frorn the estate. Residuary legacies are recognised only when the Hospital's interest can be measured, whh is nomially on grant of probate. Grants receivable in respect of expendiiure inrre{l during the year arg brought into accounl provided they have been approved for payment al the year end. Dividends and interest. bank (JeKM)sit account interest. and rents receivable are brought into account on a receivable basis. Income from public visthng and slmilar actwilies is rognISed when received. 1.9 Resources expanded Liabilities are recjniSed as soon as there ks a legal or rstruCtive obligats'on committing the Hospital to the expendiknre, il is probable that selllemenl will be required and the amotjnt of the Olgation can be measured rellay. Al expenditure 15 accounted for on an accruals basis and has been da5srfied under headings that aregate all costs related lo the (aewry. The Hospital Is not regisler8d for VAT and accordingly expendilure is shown indusive of VAT. 'Costs of generaling funds. comprise (x)sts of attracling voluntary income. costs of ds 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 STATEMEWS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting PoliGies and Koy Judgemer "Charitable aclwitl8s° comprise costs lo maintain the charitable property and to provide accommodation and welfare for the Brothers. Support costs, comprising salaries and Offi c051s, have been allocated to the activity ¢osl categories based on an estimate of the time spent. 1.10 Ponsion Khemos For eligible salaried em 0yeeS the Hospital participates in Ihe Church of England Pension Builder scheme within the Church Workers Pension Fund ICWPFI. Eligible employees who joined the Hospital up to May 2021 were entitled to become members of the Pension Builder Classic section of the scheme,. this is a d8ferrgd annuity scherne, which Is a defined benefft scheme. Since June 2021 new employees have been entitled to become members of the scheme's Penslon 8uilder 14 section,. this is a Ixsh balance scheme and is also classed as a defined benefrt scheme., il is similar to a defined contribution scheme but with a guarantee that the retirement cash sum will not usually decrease. The pension costs charged against the surplus or deficit ft)r the year represenl the contribution5 payable lo the scheme in respect of the accounting period. If there were to be a large funding deficit over a prolonged period. additional contributions might become payable. although lo date Ihe CWPF has never sought any $u¢h ¢onlributions. 1.11 Funds The Hospital's permanent endowment fund5 are sel out in not8 22 to the financl81 slaternenls. They comprise the perrnanenl endowment funds of Ihe Iwo constituent charities, the Hospilal of Sl Cross Foundalion and Ihe Amshouse of Noble Poverty Foundation. The income from the investment assets of the fLJnds is unrestricted. Prior lo 2022 the Hospital had three furKls set up under Recoupment Orders issued by the Charity Commission lo restore permanent endowment Capital expended on major projects. Dunng 2022 the Trustees. th the permission of the Charity Commission, approveé an Order allowing the balance on the recoupment funds lo be administered as part of the Hospital's pernianent endowmenL they therefore no longer require to be accounted for separate. Restricted funds are funds subject to spectfic conditions within the objects of the Hospit and are set out in note 23 to the financial ststemenls. -18-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng Poll¢le8 and Key Judgements Unrestricted ftjnds a funds Whe no restrictrons are placed on th8 use by Ihe Hospital upon either Ihe capilal or the income and comprise.. The Commander J S Baker Bequest- a designated fund The Miss G M Bauer Bequest- designated by the Trustees for use on arbonltural and horticultural projerts Refurbishment ReseNe- designated by the Trustees for contributiw lo the cost of the refurbishment project of the Broth8rs' flats. General fund- lo provide the Hospital's wothng (Spital. General funds are unrestricted funds which are available for use al the discretion of the Trustees in lurtherance of the general objectives of the charity and whkh have not been designatad for other purposes. 1.12 Key Judgements Certain ported amounts of assets and liabilities are subject to eslimales and agsumplions. Estimates and judgements ty management are continually evalual6d and are bas8d on historical experien{% and other factors, induding expectations of future events that are believed to be reasonable under the circumstances. Judgements that have the most signrficanl effect on the amounts recognised in the financial statements and eslimales that can cause a significant adjustment lo the rying amount of assets and liabilities within the next finarla1 year incluée: Investn7entproperty The investment propety valuation is reviewed annualEy by the Trustees. The propert19S are Staled at fair value with Changes in the fair value being recognised in the Slalemenl of Flnancial Activities. Incomg from donalions, grants and legacles P¢manent funds 2022 Restrfcted Unrestricted funds funds 2022 2022 Total funds 2022 Total funds 2021 Donations Grants Legacies 1,361 18,376 32,750 19,737 32,750 8,007 84,190 1,361 51,126 52.487 92,197 19-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Income from fundralslng activlties Permanent funds 2022 Restrlcted Unreslricted funds funds 2022 2022 Total funds 2022 Total funds 2021 Events Shop sales Tearoom sales 4.631 13.240 10,418 4,631 13,240 10,418 3,069 13,187 8,578 28.289 28,289 24,834 Investment income Pemianent funds 2022 Restrlctod Unrestrictod funds funds 2022 2022 Totsl funds 2022 Total funds 2021 Rent receivable Investment income 132.593 434,549 132,593 437,431 135,513 425,482 2,882 2.882 567.142 570.024 560,995 Income from charitable actlvltles Pemanent funds 2022 Restrict9d Unro5trict¢d funds funds 2022 2022 Total funds 2022 Totsl fund$ 2021 Recoveries from Brothers Primary purpose trade Ancillary trdde 170.510 69,672 38.895 170,510 69,672 38,895 155,164 50,856 45.388 279.077 279,077 251,408 -20-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER2022 Costs of generatlng voluntary Income Pemianent funds 2022 Restrlcted Unrestrlcted funds fundg 2022 2022 Total funds 2021 funds 2022 Expenses of public visiting Costs of goods sold 3,825 11,546 3,825 11,54e 3,664 5,225 15,371 15,371 8,889 Investment management costs Pemianent nds 2022 Rostrictod Unrnstrictod funds funds 2022 2022 Total funds 2022 Total funds 2021 Investment property repairs Investment property management fee8 Support costs (note 111 97,800 97,800 17,545 21,177 10,043 21,177 10,043 23.308 9.499 129,020 129,020 50,352 Analysls of expendlture on charltable actlvltles Pernianent funds 2022 Restrfcted funds 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 Upkeep of histori¢ buildings Brothers, weKare Public visiting and advertising expenses Volunteer expenses Costs of goods sold Professional fees Bad Debts Depreclation Governance costs IrH)te 10} 7.143 3,744 336.988 224.304 344,131 307,663 228,048 204,033 61,319 61,319 55,626 13,530 600 9,750 36,081 82,278 13,530 600 9,750 36,081 82.278 9,104 15,600 35,306 70,405 10,887 764,850 775,737 697,737 -21-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Analysis of expenditure on charltable actlvltles by activities Dlrect Support costs Total funds 2022 Total funds 2021 2022 2022 Upkeap of hislortc buildings Brothers, weffare Public vlsiling and advertising expenses Volunteer expenses Costs of goods sold Professional fees Bad Debts Depreciation Governa[ (x)sts (nole 10) 322,730 192,298 27,703 21,401 35,750 33,616 344,131 307,663 228,048 204,033 61,319 55,626 13,530 600 9,750 36.081 19.899 13,530 9,104 9,750 36,081 82,278 15,600 35,308 70,405 62,379 622,591 153.146 775,737 697,737 10. Governance costs Restrfct8d Unrestrlcted funds funds 2022 2022 Total funds 2022 funds 2021 Audit fees other professional fees Support Costs Inole 11) 12,852 7,047 62,379 12,852 7,047 e2,379 11,740 3,618 55,047 82,278 82,278 70.405 -22-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 11. Allocation of support costs and overheads Investrnent property Charltable management activities Governance (Note 91 (Note 101 {Note 7) Total 2022 Clerical Salaries Offi¢e Costs 10,043 76,024 14,744 52.550 9,829 138,617 24,573 10,043 90.768 62.379 163.1 2021 Clerical Salaries Office ¢osts 9,499 69,559 8,961 49,075 5.972 128,133 14,933 9,499 78.520 55,047 143.D66 12. Stsff costs staff costs were as follows.. 2022 2021 Wages and salaries Social security ¢osl$ Pension costs 304,822 25,319 16,277 284,559 22,043 24,643 346,418 331.245 The average number of employees during the year was 1912021: 191. The full time equivalent of these was 11 {2021= 111. No employee received emoluments of more Ihan £60,000 (2021= nil). PensioN costs in tho year were £16,277 {2021.' £24,643). The ¢osts in 2021 were augmenl8d by a one-off paylnent of £10,647 to Correct a shortfall in employerfs contributions in previous years. Redundancy and lemiination payments are a(xounted for in the pericNJ in which an obligation occurs. During the Cuent financial year. redundancy and termirsation paymersts amounted lo £4,667 (2021.. nil). These costs were charged lo unrestricted funds. -23-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 13. Penslon costs The Hospilal participates In the Pension Builder Scheme section of th8 Church Workers Pension Fund ICWPFI for lay stsff. The Scheme is administered by Ihe Church of England Pensions Board (the Board). which holds the assets of the heMeS separately from those of the Employer and Ihe other parb¢ipating employers. Pension Builder Classlc IPB Class) provides a pension for members for payment from retiromenl, aGGumul8ted from contribullons paid and converted into a deferred annuity durlng ernployment based on terms set and reviewed by the Board from time lo lirne. Discrets'onary incxeases may also be added, depending on investment relums and other factors. P8nsion Builder 2014 (PB141 15 a cash balar scheme that provides a lump Sum which members use to provide benefits al retirement. Pension contributions are recorded in an account for each member. Discretionary EN)r)uses may be added before tIreMent, depending on investfflenl returns and other factors. The account. plus any bonuses dedareé, is payable, unreduced, from age 65. Ther9 is sub-division of assets between employers in eilh8r section of the Pension Builder Scheme. The scheme is considered lo be a multimployer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute th8 Pension Builder Scheme's assets and liabilities to sp8¢ific employers and means that contributions are accounted for as rf the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Financial Activities in the year are the contributions payable12022: £16,277. 2021= £24,643). ContributlOnS Outstanding at the yearnd were £166 (2021.. £10,797). A valuation of the Pension Builder Scheme is carried out once every three years. The most recent was carried out as at 31 December 2019, and wa5 finalised in March 2021. The next valualion is due as al 31 December 2022, but is not eXpd to be finaliseé until early 2024. For the PB Classic section, the valuation revealed a dthil of £4.8m on the ongoing assumptions used. The pension scheme administrators have estimated that the Hospital's share of the liabilities of the scheme is of the order of 0.2Yo of Ihe total. which is less than £10,000. Al the most recent annual review. the Board ckM)se lo granl a discretionary bonus of 3'/o following improvements in the funding position over 2021. There is currenuy no requirement for deficit payments lo be made. For the PB14 $tIon, Ihe valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is currently no requirement for deficit payments lo be made. The legal structure of the scheme is suth that tFarK)ther employer fails, the Hospital could beGome resFKJll5ible for paying a share of that employerfs pension liabiltties. -24-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 14. Net gains on invesljnent assets Perynan¢nt funds 2022 Rèstrlcted Unrestricted funds funds 2022 2022 Total funds 2022 Total funds 2021 Unrealised gainslllosses) on revaluation of investment properties 70.000 70,DC 295,000 Realised gainslllo$$esl on investments Unre81ised gainslllosses) on investments {1,616,793) 149,6141 1257,248} {1,923,655) 1,860,214 {1.546,793) 149,6141 1257,248} {1,853,655) 2,155,214 15. Gross transfers between funds Rostrict¢d Unre8trlcted fvnds funds Approprkqlions to reslricled funds 1,625 (1,625) 1,625 (1,625) Appropriations lo restrcted fttnds represent the annual contribution to the Extraordinary Repair Fund and are offset by 8 transfer from restricte4J fvnds due to funds being d8-restricted following the conditions of the restriction being mel. 25-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Tangiblo fixed assets Fixtures, fittings & plant Total Cost or valuatlon At 1 January 2022 Additions On revalualions 541.213 541.213 At 31 December 2022 541,213 541.213 Dapreciatlon Al 1 January 2022 Charge for the year 113,893 36,081 113.899 36.081 At 31 December 2022 149.980 149.980 Net book value Al 31 Decernber 2022 391.233 391,233 At 31 D8cernber 2021 427.314 427.314 26-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2022 17, Flx8d asset investment propertles Invastment propertles Noble Investmenl proporties Hospltal Total Cost or valuatlon At 1 January 2022 Additions Disposals On revaluations 5,136.000 980,WO 6,116.0(H) 70.000 70.D(M) At 31 December 2022 5.206.LY)O 980,(KJO 6,186,DOO N¢t book value Al 31 December 2022 5,206.000 980,(M)O 6,186.000 Al 31 December 2021 5.136.(KiO 980.0 6.116.000 Inv8stsnent properties The investment properties were professiornally revalued as at 31 December 2018 al open market value ar the values were Teviewed and adjusted as at 31 December 2022 in line with indexed growth in the resentIal property markel. Herltage assets The heritsge assets are Ihe property of the Hospi(al of St Cnjss Foundation and Almshouse of Noble Poverty Foundation jointly and comprise 25 Almshous8s, the Church of Sl Cross, hall. gatehouse and ancillary buildings. and Sl Faith's Churchyard. The conservation of these buildings is one of the Hospital's primary objectives. The buildings were constructed in earfior centurie5 ar their original cost has long since been written off and are therefore held al £nil nèl book value. No significant building unil has been added during the past sty years. -27-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Flxed a88et Invgstmonts Pemiangnt funds Restri¢t¢d UnStrI¢ted funds funds Total funds CCLA Funds at market value Al 1 January 2022 Racoupments Additions Disposa15 Transfers Between Fund5 Transfers lo Cash Change in market value 13.473.685 530,974 1.625 2,175,947 16,180,606 1,625 11.616,793) {49.6141 (257,2481 11.923,655} At 31 December 2022 11.856.892 482,985 1.918,699 14,258,576 19. stocks 2022 2021 Goods for resale 8,825 11.145 8,825 11,145 20. Debtors 2022 2021 Trade debtors Other debtors Prepayments and accrued income 11,683 1,201 4,551 8,520 3,178 2.059 17.435 13.757 -28-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMEWS FOR THE YEAR ENDED 31 DECEMBER 2022 21. Credltors 2022 2021 Trade creditors Taxation and social securty Other CditOrS Accruals and (ieferred in¢ome 34,263 8,710 54,220 5,163 1,402 66,343 24,559 68,122 127,128 Deferred income relates to deposits paid forfulure eventslweddings. the balance held at the end of the year was £4,528 (2021.. £5,294). 22. Permanont ondowment funds At l Jan Movement for At 31 Dec 2022 the year 2022 Hospital of St Cross Foundation Almshouse of Noble Poverty Foundation 17.627,805 1.580,146 (1.212.840) 16,414,965 47,781 1,627,927 19.207,951 (1.165.059) 18.042,892 91, 93, 95 St Cross Road recoupment fund Porterfs Lodge recoupment fund Brothers, flats recoupment fund 132,958 71,247 177,529 (132.9581 (71.2471 (177.5291 381.734 (381,7341 19,589,685 (1,546.7931 18,042,892 During 2022 the Tru5tee5. Wth the permission of the Charty Commission. approved an Order allowing the balance on the recoupmenl funds to be administered as part of the Hospital's P8rmanent endowmenl,. they therefore no longer require lo be accounted for separately. 29-
The Hospital of St Cross and Almshousa of Noble Poverty NOTES TO THE FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2022 23. R05trlcted funds At 1 Jan Movement for At 31 Dec 2022 tho year 2022 Extraordinary repair fvjnds (a) John Hatton fund Ibl Brothers. welfare fund (c) Friends of St Cross grant fund 469,749 76,955 4,295 7,143 140,699) 16.045} 1746} 17.143} 429,050 70,910 3,54g 558,142 {54,633) 503,509 a) ExeEptlon81 paIrS to property (Scheme of 5 November 1984, clause 46: annual contributions of not less Ihan £1,625). b) To provide for the Hospital's general purposes for the benefit and advancement of the social life of the Brothers. cl To provide for the welfare of the Brothers through donations given through collection boxes. Donations tolalling £1,176 were received in the year and £1,922 disbursed. Unrestrlcted funds At 1 Jan Movgmont for At 31 Dac 2022 tha yaar 2022 D05ignatad funds: Commander J S Baker Bequest Miss G M Bauer Bequest Refurbishment Reserye 561,194 194,449 100.000 165,223) (27,579) 495,g71 166,870 100,000 855.643 1,879,788 2,802) 762,841 {149,678} 1,730,110 General fund 2,735.431 {242,480} 2,492,951 The Refurt)ishmenl Reserve comprises amounts appropriated from the General Fund towards the cost of refurbishing the Brothers, flats. -30-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO T4E FINANCIAL sTATEmEs FOR THE YEAR ENDED 31 DECEMBER 2022 25, Analysls of net assets between funds Pomianent Restrlded Unrostrlcted funds funds funds 2022 2022 2022 Total funds 2022 Total funds 2021 Tangible fixed assets FIX asset investment propèrties FIX asset investments Current assets Creditors due within one year 391,233 391,233 427,314 6,186,(KiO 11,856,892 6,186,000 6,116,000 1,918.699 14,258,576 16,180,60e 251,141 271.665 286,468 (68,1221 168,122) (127,1281 482,985 20,524 18.042.892 3,509 2,492,951 21,039.352 22,883,258 Analysls of nat assots botween funds (prfor year comparatlve) Permanent Restricted Unrostrlctod funds funds funds 2021 2021 2021 Totsl fund$ 2021 Total fund$ 2020 Tangible fixed assets Fixed asset investment properties Fixed asset investments Current assets c110r8 due wthin one year 427,314 427,314 451,005 6,116,1M)O 13,473,685 6,116,000 5,821,000 2.175,947 16,180,606 14.309,296 259,298 286.466 97,386 (127.1281 (127,128} 1123,0991 530.974 27.168 19,589,685 558.142 2.735,431 22,883,258 20,555,588 26. Analysls of changes in net cash At 1 Jan 2022 Cash flow At 31 Doc 2022 Cash at bank and in han(J Cash held wlh inveslm&nl manager 234.342 27.222 119,151) 2.992 215,191 30,214 Nel Cash 261,564 (16,1591 245,405 31-
The Hospital of St Cros5 and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Flnanclal Instruments 2022 2021 8asl¢ financial assets Basic flnancial liabilities 14,525,690 16,465,013 (59,4121 (121,9651 Baslc financial assets are all investments {exduding investment properties), debtors u$ cash in hand minus prepaymenl5. Basic financial Ilabilllies are all creditors due in less than one year plus creditors due in more than one year minus taxation payable. Th8 entitl$ income. expense, gains and losses in resp1 of financial instruments are summarised below:_ 2022 2021 Total dividend and inleresl iru)me for basic finan¢ial assets Total (lossesygains in respect of basic financial assets 437.431 11,923,655) 425,482 1.860,214 28. Financial Commitments Non-cancellable operating lease rentals rNable 2022 2021 Less than one year After one year and less than fve years After five years 62,380 38,480 5,585 34.489 563 106,445 35.052 The leasg rentsls receNable relates to rent income receNable from the Hospital's investment properties. The amounts recewable are limited lo the next rent review date for agrlcultural properties or the earfier of the lease end date or break clause for other properties. 29. Commitments and contingen¢i9S There were no material commttments at 31 Dec*mber 2022 or 31 Dmber 2021. There we no (xnlingenl liabilities at 31 DTber 2022 or 31 December 2021. -32-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAFi ENDED 31 DECEMBER 2022 Related party transactions and Trusteos, expen$¢s and remuneratlon No Truste8 received any remuneration or reimtxjrsement of expenses frorn Ihe Hospital during the year. Mrs Felioty Pennyc(Kik and Mr Jonathan Cooke are also Trustees of the Friends of Sl Gross Hospital Winchester. The Friends made a grant of £15.000 (2021.. £17,000) to the Hospital during the year. Key management personnel receNed total remuneration of £nil during the year (2021- £nil). Durfng th8 year, lotal donallons by the truste8S to the charity amounted lo £nil (2021: £nil). -33-
The Hospital of St Cross and Almshouse of Noble Poverty NOTES TO THE FINANCIAL STATEMEWS FOR THE YEAR ENDED 31 DECEMBER2022 31. Additional prior yoar ¢omparatives- $tat¢mgnt of financial a¢tivitles Pemianent funds 2021 Restricted funds 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Not• Income from: Donations, grants and legacies Fundraising activities Investment income Charitable acbvilies 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 Incomo 21,682 907,752 929,434 658,038 Expenditure on: Rai&ng funds.. Costs of generating voluntary in¢ome Inv851menl managgmenl cx)sls 8,889 8,889 6,001 8,435 41,917 50,352 45,485 CharTlable activities 28,013 669,724 697,737 685,901 Total ¢xpenditur¢ 8.435 28.013 720.530 756.978 737,387 Nèt Incomlng (outgoing) resources beforn Investmont galns (8,435) {6.331 } 187,222 172,456 179,349) Nel gains (losses) on Investments 14 1,806.344 77.041 271.829 2,155,214 653.320 Net income boforg transfers Trar)sfers between fvnds 1,797,W9 70,T10 459,051 2,327,670 573,971 15 10,308 1,625 {11,933) Net movomgnt i funds 1,808.217 72,335 447,118 2,327,670 573,971 Reconciliation of funds: Total funds at January 2021 17.781.468 485,807 2,288,313 20,555,588 19,981,617 Total funds at 31 December 2021 19,58g,685 558,142 2,735,431 22,883,258 20,555,588 34-