## **EARLE’S RETREAT**
**REGISTERED CHARITY NO. 204123 HOMES AND COMMUNITY AGENCY NO. A3538**
**ANNUAL REPORT AND FINANCIAL STATEMENTS 5 FEBRUARY 2021**
## **EARLE’S RETREAT**
## **INDEX**
|**Contents**|**Page**|
|---|---|
|Officers and professional advisors|1|
|Trustees Annual Report|2 to 3|
|Independent Examiners’ report to the trustees|4|
|Statement of Comprehensive Income|5|
|Statement of Financial Position|6|
|Statement of Cash Flows|7|
|Notes to the financial statements|8 to 13|
|Income and Expenditure Account|14|
1.
## **EARLE’S RETREAT**
## **OFFICERS AND PROFESSIONAL ADVISORS**
Trustees Mrs H Evans Mr P Hobson Mr B Lukey Mr A Mooney Mr C Mosney Mr A Miller Mr M Winchester Mrs J Harris Treasurer Mrs. S. A. Hyde Secretary and Clerk to Trustees Mrs D Moore
Mrs H Evans Mr P Hobson Mr B Lukey Mr A Mooney Mr C Mosney Mr A Miller Mr M Winchester Mrs J Harris Mrs A Tredget – Appointed 21.07.21
Accountants Briants Chartered Accountants Maritime House Discovery Quay Falmouth TR11 3XA Bankers Barclays Bank PLC 6 Killigrew Street Falmouth.
2.
## **EARLE’S RETREAT**
## **ANNUAL REPORT OF THE TRUSTEES**
The Trustees present their report along with the financial statements of the charity for the year ended 5[th] February 2021. The financial statements have been prepared in accordance with the accounting polices set out on page 8 and comply with the charities constitution and applicable law.
## **GOVERNANCE**
Earle’s Retreat is an Almshouse registered under the Housing Act 1996, as amended by the Housing Act 2004 (Homes and Community Agency registered number A3538) and is a registered charity (number 204123). It was founded by scheme dated 26[th] September 1958, as amended by scheme dated 27[th] August 2003.
The trustees during the period and at the date of this report (unless otherwise indicated) were:
CO-OPTATIVE TRUSTEES (Appointed by the Trustees on 5-year terms) Mr. Arnold Mooney – Chairman from 20.3.18 Mrs. Hazel Evans – Vice Chairman from 20.3.18 Mr. Colin Mosney Mrs J Harris Mr. Paul Hobson Mr. Barrie Lukey Mr. Alan Miller Mr. Martin Winchester Mrs A Tredget – Appointed 21.07.21
The Town Council have agreed that there will be no further requirement for Councillor nominees.
Other trustees are appointed for a term of 5 years by a resolution by the trustees.
## **OBJECTIVES AND ACTIVITIES**
The objective of the charity is to provide safe, long term accommodation for the benefit of long-term residents of the Falmouth area over the age of 55 who, for whatever reason, are unable to provide for themselves financially.
These activities are considered to be for the public benefit and in running the charity, the trustees have regard for the Charity Commission guidance on public benefit.
3.
## **EARLE’S RETREAT**
## **ANNUAL REPORT OF THE TRUSTEES (Continued)**
## **ACHIEVEMENTS AND PERFORMANCE**
Income is generated from the letting of its properties and income has increased by £5,197 to £98,352. £562 of this increase relates to the CJRS. Operating costs have decreased by £1,839 this year due to a decrease in routine maintenance costs partly off-set by the increase cost of light and heat. A surplus of £59,716 has arisen and has been added to reserves.
The charity’s policy on reserves is to maintain sufficient reserves to enable the charity to continue to achieve its principal objectives.
## **STATEMENT OF TRUSTEES’ RESPONSIBLITIES**
The Homes and Communities Agency and charity legislation requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit for that period.
The trustees have complied with the duty in Section 17 (5) of the 2011 Charities Act to have due regard to guidance published by the Charities Commission in respect of public benefit.
In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies then apply them consistently;
- Make judgements and estimates that are reasonable and prudent;
- Follow applicable accounting standards, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements ion the going concern basis unless it is inappropriate to presume the charity will continue in operation.
The trustees are responsible for maintaining adequate accounting records, for safeguarding the assets of the charity and for taking reasonable steps from the prevention and detection of fraud and other irregularities. The trustees are also required to indicate where the financial statements are prepared other than on the basis that the charity is a going concern.
10/08/2021 Approved by the Trustees on ………………………. and signed on their behalf by
**………………………….. A Mooney – Chairman**
**………………………….. P Hobson - Trustee**
4.
## **EARLE’S RETREAT**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF EARLE’S RETREAT**
I report on the accounts of the Trust for the year ended 5[th] February 2021, which are set out on pages 5 to 14.
## **Respective responsibilities of trustees and examiner**
The Charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 act) and that an independent examination is needed. The charity is preparing accrued accounts and we are qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.
It is my responsibility to:
- examine the accounts under section 145 of the Charities Act 2011, the Housing Act 1996, as amended by the Housing Act 2004 and the Statement of Recommended Practice: Accounting by Registered Social Landlords (updated 2014)
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act; and
- to state whether particular matters have come to our attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with our examination, no matter has come to my attention:
- (1) which gives us reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the 2011 Act and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
||Briants|
|---|---|
||Chartered Accountants|
||Maritime House|
|T.A.C BRIANT|Discovery Quay|
|Dated: ……………………………..|Falmouth|
||TR11 3XA|
5.
## **EARLE’S RETREAT**
## **STATEMENT OF COMPREHENSIVE INCOME**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|Notes
Turnover
Operating costs
**Operating surplus**
Interest receivable and similar income
2
Interest payable
3
**Surplus on ordinary activities**|2021
98,352
71,861
**26,491**
33,225
-
**59,716**|2020
93,155
73,700|
|---|---|---|
|||**19,455**|
|||32,378
-|
|||**51,833**|
The financial statements were approved by the trustees on ………………………. and signed on their 10/08/2021 behalf by:
…………………………… …………………………… **A Mooney – Chairman P Hobson - Trustee**
The Charity’s only activity is the provision of accommodation.
No operations have been discontinued or acquired during the year, and the amounts above relate entirely to continuing operations.
The Charity has no recognised gains or losses other than those included in the surpluses above and therefore no separate statement of total recognised gains or losses has been presented.
6.
## **EARLE’S RETREAT**
## **STATEMENT OF FINANCIAL POSITION**
## **AS AT 5 FEBRUARY 2021**
|Notes
**Fixed Assets**
Tangible Fixed Assets
HAG Grant
6
Investments
7
**Current Assets**
Debtors
8
Cash at bank and in hand
**Current Liabilities**
Creditors: Amounts falling due within 1 year
9
**Net Current Assets**
**Total Assets less Current Liabilities**
**Capital & Reserves**
Charitable reserve
10
Revenue reserve
Revaluation reserve|2021
2,500,000
(267,410)
2,232,590
561,137
2,793,727
5,347
189,306
194,653
(5,689)
188,964
**2,982,691 **
173,892
880,088
1,928,711
**2,982,691 **|2020
2,500,000
(267,410)|
|---|---|---|
|||2,232,590
530,214|
|||2,762,804|
|||6,645
158,157|
|||164,802|
|||(4,631)|
|||160,171|
||||
|||**2,922,975**|
|||168,610
825,654
1,928,711|
|||**2,922,975**|
The financial statements were approved by the trustees on ………………………….. and signed on 10/08/2021 their behalf by:
………………………………… ………………………………… **A Mooney – Chairman P Hobson - Trustee**
7.
## **EARLE’S RETREAT**
## **STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|**CASH FLOWS FROM OPERATING**
**ACTIVITIES:**
Notes
**Net cash provided by (used in) operative**
**activities**
13
**CASH FLOWS FROM INVESTING**
**ACTIVITIES:**
Purchase of tangible fixed assets
Investment income
Purchase of investments
**CASH FLOWS FROM FINANCING**
**ACTIVITIES:**
Interest paid
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of
the year
14
Cash and cash equivalents at the end of the year
14|**2021**
28,847
-
33,225
(30,923)
-
_______
31,149
158,157
_______
189,306|**2020**
15,332
-
32,378
(30,022)
-
______
17,688
140,469
______
158,157|
|---|---|---|
8.
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
## **PRINCIPAL ACCOUNTING POLICIES**
## 1. **a) Basis of preparation and assessment of going concern**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the ‘Charities Act 2011’, ‘The Accounting Direction for Private Registered Providers of Social Housing from 2015’, the ‘Housing SORP 2014: Statement of Recommended Practice for registered social housing providers’ effective 1 January 2015 and the ‘Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102) effective 1 January 2015.
The Charity constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
## **b) Turnover**
Turnover represents residential contributions and service charges receivable.
## **c) Depreciation**
Depreciation is calculated to write off the cost of equipment on a straight-line basis over 5 years.
Housing properties are maintained to such a standard that their estimated residual value is not less than their cost. Therefore no depreciation is charged.
## **d) Housing Association Grant (HAG)**
Grants for capital expenditure are deducted from the cost of the fixed assets to which they relate as they become receivable. HAG is repayable under certain circumstances, primarily following sale of a property but will normally be restricted to net proceeds of sale.
## **e) Investments**
Investments held as fixed assets are stated at cost less provision for any permanent diminution in value.
## **f) VAT**
The charity is not registered for VAT. Expenditure is therefore shown inclusive of irrecoverable input VAT.
## **g) Interest received**
Interest on bank and building society deposits is recognised in the revenue account when received.
No adjustment is made for accrued interest receivable.
9.
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|**2. Interest Received**
Charitable donations
Interest received
Investment income
**3. Interest Payable**
On loans repayable in fewer than 5 years
**4. Employees**
Wages & Salaries
Social security costs
Warden's council tax
Average number of people employed in
year:
Hostel staff
Secretarial support
**5. Trustees' Emoluments**
Emoluments
Total expenses reimbursed to the trustees not
chargeable to United Kingdom income tax|2021
-
1,426
31,799
**33,225**
2021
-
2021
21,948
-
1,411
**23,359**
2
1
**3**
NIL
NIL|2020
118
1,362
30,898|
|---|---|---|
|||**32,378**|
|||2020
-
2020
21,670
-
1,346|
|||**23,016**|
|||2
1|
|||**3**|
|||NIL
NIL|
The trustees of the charity hold the office of Directors for the purposes of the Registered Housing Association (Accounting Requirements) Order 2006.
10
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|**6. Tangible Fixed Assets**
**Cost**
At 6th February 2020
Additions
At 5th February 2021
**Housing Association Grant**
At 6th February 2020 and 5th February 2021
**Depreciation**
At 6th February 2020
Charge for year
At 5th February 2021
**Net Book Value**
At 5th February 2021
At 5th February 2020
**Property cost is represented by:**
Valuation in 2019
HAG Grant
Cost
**Total**|**Freehold**
**Housing**
**Properties Equipment**
**Total**
2,500,000
5,185
2,505,185
-
-
-|
|---|---|
||**2,500,000**
**5,185**
**2,505,185**|
|||
||**267,410**
**-**
**267,410**|
||-
5,185
5,185
-
-
-|
||**-**
**5,185**
**5,185**|
|||
||**2,232,590**
**-**
**2,232,590**|
||2,232,590
-
2,232,590
2021
2020
2,196,121
2,196,121
(267,410)
(267,410)
571,289
571,289
**2,500,000**
**2,500,000**|
The property was valued at £2.5m by the directors on an open market basis on 5[th] February 2021.
11.
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|**7. Investments**|2021|2020|
|---|---|---|
|Cost at 6th February 2019|530,214|500,192|
|Accumulated dividends|30,923|30,022|
|Cost at 5th February 2020|**561,137**|**530,214**|
|The market value of the listed investments at 5 February 2021 was £797,210 (2020 -|||
|£815,519).|||
|**8. Debtors**
Residential contributions receivable
Other debtors
Prepayments and accrued income
**9. Creditors: Amounts falling due in under one year**
Trade creditors
Tax and social security
Due back to residents
Accruals and deferred income||2021
1,242
809
3,296
**5,347**
2021
1,442
353
-
3,894
**5,689**||2020
2,792
1,253
2,600|
|---|---|---|---|---|
|||||**6,645**|
|||||2020
836
354
348
3,093|
|||||**4,631**|
12.
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|**10. Reserves**
At 6th February 2020
Surplus for year
Revaluation of property
Transfer to charitable reserve
At 5th February 2021|**Revaluation**
**Reserve**
**Revenue**
**Reserve**
**Charitable**
**Reserve**
**Total**
1,928,711
825,654
168,610
2,922,975
-
59,716
-
59,716
-
-
-
-
-
(5,282)
5,282
-|
|---|---|
||**1,928,711**
**880,088**
**173,892**
**2,982,691**|
The charitable reserve has been designated for charitable purposes by the trustees but is not represented by specific assets of the charity.
|**11. Accommodation in Management**
Number of units of housing accommodation
**12. Residents in receipt of housing benefit**|2021
20|2020
20|
|---|---|---|
During the year 4 residents were in receipt of housing benefit.
13.
## **EARLE’S RETREAT**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
## **13. Reconciliation of Net Income/Expenditure to Net Cash Flow From Operating Activities**
|**Net income/(expenditure) for the reporting period as**
**per the statement of comprehensive income**
**Adjustments for:**
Depreciation of tangible fixed assets
Interest paid
Investment income
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**
**14. Analysis of Cash and Cash**
**Equivalents**
Cash at bank and in hand|2021
59,716
-
-
(33,225)
1,298
1,058
**28,847**
2021
**189,306**|2020
51,833
-
-
(32,378)
(2,499)
(1,624)|2020
51,833
-
-
(32,378)
(2,499)
(1,624)|
|---|---|---|---|
|||**15,332 **||
||||2020|
|||**158,157 **||
## **15. Other income**
Other income is made up of monies received from the Coronavirus Job Retention Scheme (CJRS) in the year.
14.
## **EARLE’S RETREAT**
## **INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 5 FEBRUARY 2021**
|
**Income From Lettings**
Residential contributions
Service charges
**Gross Income Receivable**
Other income received
Losses arising from voids
**Net Income Receivable**
**Expenditure**
**Services**
Council tax
Heat & light
Water charges
Telephone
**Management**
Insurance
Subscriptions
Stationery & general expenses
Accounting fees
Employee costs
Lifeline system
Professional fees
Depreciation
**Routine Maintenance**
**Charitable Expenditure**
**Total Operating Expenditure**
**Operating Surplus**
**Other Operating Income**
Charitable donations
Interest received
Investment income
Interest payable
**Surplus on Ordinary Activities**|Notes
15|2021
67,685
30,105
**97,790**
562
-
**98,352**
-
16,332
4,611
774
**21,717**
2,010
554
268
1,020
23,359
1,811
2,472
-
**31,494**
18,298
352
**71,861**
**26,491**
-
1,426
31,799
-
**59,716**|2020
65,106
29,187|
|---|---|---|---|
||||**94,293**|
||||(1,138)|
||||**93,155**|
||||-
13,922
4,110
971|
||||**19,003**|
||||1,939
525
216
1,020
23,016
1,219
2,422
-|
||||**30,377**|
||||23,242
1,079|
||||**73,700**|
|||||
||||**19,455**|
||||118
1,362
30,898
-|
||||**51,833**|