EARLE'S RETREAT REGISTERED CHARITY NO. 204123 HOMES AND COMMUNITY AGENCY NO. A3538 ANNUAL REPORT AND FINANCIAL STATEMENTS 5 FEBRUARY 2024 EARLE'S R￿REAT INDEX Contents Page offi￿rS and professional advisors Trustees Annual Report 2103 Independent Examiners, report to the trustees Statement of Comprehenswe Income Statement of Financial Position Statement of Cash Flows Notes lo the finanaal statements 8t013 Incorne and Expenditure Account 14 EARLE'S RETREAT OFFICERS AND PROFESSIONAL ADVISORS TNslees Mr P Hobson Mrs H Evans Mr B Lukey Mr C Mosney - Resigned 20.03.24 Mr M Winchester Mrs J Harris- Resigned 12.02.24 Mrs A Tredgel Mr P Haggar Mr I Symonds- Apwinted 15.11.23 Treasurer Mrs. S. A. Hyde Secretary and Cletl< lo Trustees Mrs K Peatre Account8nts Briants Charterod Accountants Maritime House Discovery Quay Falmouth TR113XA Bankers Barclays Bank PLC 6 Killigrew Street Falmoulh. EARLE'S RETREAT ANNUAL REPORT OF THE TRUSTEES The Trustees present their report along wilh the financyal gt81ements of the charity for the year ended 5th February 2024. Tho financial staternenls have been prepared in accordan￿ with Ihe a￿O￿nting 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 1W, as amended by the Housing Act 2(KM (Homes and Community Agency reglstered number A35381 and is a registered charity (number 2041231. It was founded by scheme dated 26th September 1958, as amended by scheme dated 27 August 2003. The trustees during the period and al the date of this report (unless otherwise indicated) were.. CO-OPTATIVE TRUSTEES (Appointed by th8 Trustees on 5-yearterm81 Mr. Paul Hobson - Chaimian M￿. Hazel Evans- WI￿ Chaimian Mr. Colin Mosney- Resigned 21.03.24 Mrs J Harris- Resiqn8d 12.02.24 Mr. Barrie LLtk8y Mr. Martin Winchester rs A Tredget Mr P Haggar Mr I Symonds- Appointed 15.11.23 The Town Council have agreed Ihat there will be no fvrther requirement for cOur￿LI10r nominees. Other trustees are appoinled ftir a term of 5 years by a resolution by the Iruste8s. OBJECTIVES AND ACTIVITIES The objective of the charity is lo provide Safe, long lenn acwmmodation for the benefit of lon*term residents of the Falmouth area over the age of 55 ￿0. for whalever reason, are unable to provide f themselves financmally. These actiwties are considered lo be for Ihe wblic benefit 8fKI in running the charity, the trustees have regard for Ihe Charity Commission guidance on public ben8fit. EARLE'S RETREAT ANNUAL REPORT OF THE TRUSTEES (Continu•dl ACHIEVEMENTS AND PERFORMANCE Income is gener2ted from the letting of its propèrties and income has increased by £23,313 to £122,696. Operating costs have increased by £25,459 this year mainly due lo a large increase in routine Maintenan￿ costs relating to the relurbishment of some of Ihe flals. A surplus of £24,940 has arisen and has been added to reseNes. The charity's policy on reserves is to maintain sufficient reserves to enable the charity to continue lo achieve ils principal ObJ￿I1veS. STATEMENT OF TRUSTEES, RESPONSIBLITIES The Homes and Communities Agery and charity legislation requires Ihe trustees lo prepare financial slalements for oach financial year which give a true and fair V￿ of tho state of affairs of th8 charity as al the end of the finanual year and of the surplus (w deficit for that peiiod. The Irustees have complied wth Ihe duty in Section 17 {51 of the 2011 Charities Act to have due regard to guidance published by the Charities Commission in respect of publ￿ benefit. In preparing these finanrial statements, the trustees are required lo- Select s¢jItab￿ accounting policies then apply them consislenlly.. Make judgements and estimates that are reasonable and prudent- Follow applicable accounting standards, subject to any material departures disclosed and eXp￿Ined in the finarKlal statements.. Prepare Ihe financial statements ion the going concem basis unless il is inapproprlale to presume the charity wll continuè in operation. The trustees are responsible for maintaining adequate acC￿ntIng rec(Kds, for safeguarding the assets of the charity and for taking reasonable steps from the prevenlion and deteclion of fraud 2nd other irregularities. The trustees are also required to indicale where the financial stateM￿ts are prepared other than on Ihe basis that the charity is a going concern. fj410812024 Approved by the Trustees on . and signed on their behalf by Chaimian Trustee EARLE'S RETREAT INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EARLE'S RETREAT I report on the accounts of th8 Trusl for the year ended 5th February 2024, which are set out on pages 51014. Respectlve responsibilities of trustees and examiner The Charity's trustees are responsible for the preparation of the accounts. The charity's trustees onsider 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 awunts and we ale qualified to undertake the examination by beiro a qualified member of The Institute of Chartered Accountants in England and Wales. It is my ￿sponSIbl]Ity to.. examine the accounts under section 145 of the Charities Ad 2011, the Housing Act 1996, as amended by the Housing Act 2004 and the Statement of Recommended Practice.. Accounting by Registered Social Landlords {updated 20141 lo follow the procedures laid down in the gerEral Directions given by the Charity Commission under section 145(51 Ibl of the 2011 Act,. and to stale whether partiCLtlar matters have come to our attention. Basis of independent examinevs report My examination was carried out in accordan￿ with the general Directions given by the Charity Commission. An examination indudes a review of the accounting records kept by the charity and a comparison of the accounts rxesenled with those records. It also includes consideralion of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do nol provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accoLsnts present a 'true and fair vw, and the report is limited to those matters set out in the statement below. Independent examiner's statement In connection with our eXa￿l￿atIOn. no matter has come to my attention.. which gives us reasonable c3use to believe that in any malerial respect the requirements= to keep accounting records in accordance with section 130 of the 2011 Act and lo prepare accounts which accord wth the accourrting records and comply with the awounting requirements of the 2011 Act have not been mel., or (2) to which, in my opinion. attention should be drawn in order lo enable a proper understanding of the accounts to be reached. Briants Chartered Accountants Maritime House Discovery Quay Falmouth TR113XA T. A. C. Briant Dated-. 1410812024 EARLE'S RETREAT STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 5 FEBRUARY 2024 Notes 2024 2023 Turnover 122,696 99,383 Operating costs 137,284 111,825 Operating surplusl(deflcitl 14,588 Interesl receivable and similar income 39.528 36.037 Interest payable Surplus on ordlnary activities 24,940 23.595 1410812024 The financial statements were approved by the trustees on ......... behalf by.. and signed ￿ their Chaimian Truste8 The Charity's onty aclivily is the provision of accommodation. No operations have been discontinued or acquired duiing the year, and the amounts above relate entirely to wnlinuing operations. The Charity has no recognised gains or losses other than those included in the surpluses alyjve and theref(Tr no separate sta18menl of total recognised gains or losses has been presented. EARLE'S RETREAT STATEMENT OF FINANCIAL posmoN AS AT 5 FEBRUARY 2024 Notes 2024 2023 Fixed Assets Tangible Fixed Assets HAG Grant 2,500,900 267.410 2,233,489 1,028,602 2,501.199 267,410 2,233,789 671,207 Investments 3,262,091 2,904,996 Current Assets Debtors Cash at bank and in hand 5,231 156,254 5.441 162,437 161485 167 878 Current Liabilities Creditors.. Amounts falling due within 1 year {18,754) {12,699) Net Current Assets 142 731 155.179 Total Assets less Current Llabilitfes 3 404,822 3.060,175 Capital & Reserves Charilable reserve Revenue reserve Revalu8tion reserve 10 190,348 966,056 2,248,418 184,354 947,110 1,928,711 3 404,822 3,060,175 1410812024 The finana81 statements were approved by the twstees on their behaEf by.. . and signed on Chalmian Trustee EARLE'S REfREAT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 FEBRUARY 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Notes 2024 2023 Net cash provlded by (used In) operative activities 13 17,7731 (3,3701 CASH FLOWS FROM INVESTING ACTivrriES: Purchase of tangible fixed assets Inveslmenl income Purchase of investments (1,4991 35,587 {34,2951 39,278 137,6881 CASH FLOWS FROM FINANCING ACTIVITIES: Interest patd Change in cash and cash equivalents in the year 16,1831 (3,577) Cash and CAsh equivalents at the begInn￿g of the year 14 162,437 166,014 Cash and cash equivalents al the end of the year 14 EARLE'S RETREAT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 FEBRUARY 2024 PRINCIPAL ACCOUNTING POLICIES a) Basls of preparatlon and assessment of going concern The financial statements have been prepared under the historical cost convention with items recognised at cost or transact￿ value unless otherwise slated in Ihe relevant notes lo these accounts. The financial statements have been prepared in accordance with the 'Charities Act 2011,, 'The Accounting Direction for Pllvale Registered Providers of Social Housing from 2015., the 'Housing SORP 2014.. Statement of Recommended pra￿l¢e for registered s(Kial housing providers, effectsve 1 January 2015 and the 'Financial Reporting Standard applicable in the UK and Republic of Ireland, IFRS 102) effective 1 January 2015. The Charity constitutes a public benefit entty as defined by FRS 102. The tnjslees consider that there are no material UN￿rtaIntieS about Ihe charity's ability lo Gontinue as a ￿Ing corw. b) Turnover Tumover represents residential ContiTbu￿ans and service charges receivable. ¢1 Depreciation Depreuation is calculated to write off the cost of equipment on a straight-line basis over 5 years. Housing properties are maintained to such a starvjard that their eslimaled residual value is not less than their cost. Therefore no deprecialion is charged. d) Houslng Association Grant (HAG) Grants for capital expenditure are deducted from the cost of the fixed assets to which Ihey relate as they become receivable. HAG is repayable under ￿rtain Circumstan￿$, primariw followng saEe of a property I￿1 will normally be reslticted to net proceeds of sa￿. e) Investment$ Investments are held at their Ma￿et value at the reporting date. fjVAT The charity is nol registered for VAT. Expendilure is therefore shovm illdusive of irrecoverable inpul VAT. g) Interest re¢elved Interest on bank and bullding so￿ety deposits is recognised in the revenue a￿Ount when re￿ived. No adjustmenl is made for accrued inter8st receiv8ble. EARLE'S R￿REAT NOTES TO THE FINANCIAL sTATEmE￿s FOR THE YEAR ENDED 5 FEBRUARY 2024 2024 2023 2. Inlerest Rgcelved Charitable donations Interest received Investment inc¢)me 250 638 38,640 450 416 35,171 36,037 3. Interest Payable 2024 2024 On loans repayable in fewer Ihan 5 years 4. Employees 2024 2024 Wages & Salaries Social security Gosts Warden's council tax 29.089 24,080 1,561 29,089 25.641 Average number of people émployed in year.. Hostel staff Secretarial support S. Trustees. Emoluments Emoluments NIL NIL Total expenses reimbursed to the trustees not chargeable to United Kingdom income tax NIL NIL The twstees of the charity hold Ihe 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 S FEBRUARY 2024 Froahold Houslng Propgrties Equipment 6. Tangible Fixed Assets Total Cost At 6th February 2023 Additions 2,500,0(K) 6,684 2,506,684 Al 5th February 2024 2,500,000 6,684 2,506 684 Houslng Association Grant Al 6th February 2023 and 5th F8bruary 2024 267.410 267 410 Depreciation Al 6th February 2023 Charge for year 5.484 300 5,484 300 At 5th February 2024 Net Book Value Al 5th February 2024 2,232,59 900 2,233.490 At 5th February 2023 2,232,590 1,199 2,233,789 Property cost Is represent￿ by.. 2024 2023 Valuation in 2024 HAG Grant 2,196.121 {267,410) 2,196,121 1267.4101 Cost 571,289 571,289 Total 2,500,000 2,500.000 The property was valued al £2.5m by the trustees on an open market basis on 5 February 2024. 11 EARLE'S RETREAT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 FEBRUARY 2024 7. Investments 2024 2023 Cost at 6th February 2023 R8valuallon at 51h February 2024 Accumulated (iividends Additions in year 671,207 319,707 37,688 636,912 34,295 Cost at 5th FetKuary 2024 1028 602 671.207 Investments held have Fxen revalued in thè year ended February 2024 to be carried in the accounts at market value. The cost value of the listod investments al 5 February 2024 was £671,20712023 accounts - Investments shown al cost. Investments had a market value on 5, February 2023 of £999,988). 8. Debtors 2024 2023 Residential conlribulions re￿1vable other debtors Prepayments and accrued income 2,304 2,401 835 2,205 2,926 9. Creditors: Amounts falling dua in under one year 2024 2023 Trade creditors Tax and soaal security Due back lo residents Accruals and deferred income 8,653 356 7,852 534 9.745 4,313 18,754 12. EARLE'S RETREAT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 FEBRUARY 2024 Revaluation Reserve Revenue Reserve Charitable Reserve 10. Rose￿e5 Total Al 6th February 2023 Surplus for year Revaluation of property Revaluallon of investment Transfer to charitable reserve 1,928,711 947.110 24,940 184,354 3,060,175 24,940 319.707 319,707 15.994) 5,994 At 5th February 2024 2,248.418 966.056 190.348 3,404,822 The charitable reserve has teen deswJnated for Gharitable purposes by the trustees but is not represented by 8￿cifiC assets of the charity. 11. Accommodalion In Management 2024 2023 Number of units ofhousing a￿0mModatIon 21 20 12. Residents in receipt of houslng benefit During the year 11 residents were in receipt of housing benefit. 13. EARLE'S RETREAT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 FEBRUARY 2024 13. Re¢on¢lliation of Net IncomelExpendilure to Net Cash Flow From Operating Activities 2024 2023 Net in¢omel{expenditure) for the raporting period as per the statement of comprehensive income 24,g40 23,595 Adjustments for: Depreciation of tangible fixed assets Interest paid Investment income {Increaselldecreas& in debtors Increasel{decrea5e) in creditors 300 139,278) 210 6,055 {35,587) 1,316 7,006 Net cash expended by operating activities 7.773 3,370 14. Analysis of Cash and Cash Equivalents 2024 2023 Cash at bank and in hand 156,254 162,437 14. EARLE'S RETREAT INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 FEBRUARY 2024 Notes 2024 2023 In¢ome From Lettlngs Residential contributions SeNice charges Gross Income Re¢eivable 85,894 41,284 127 178 72,183 29,746 101.929 Other income received Losses arising from voids Net Income Receivable 4,482 122,696 2,546 99,383 Expenditure Servicès Council tax Heat & light Watgr charges Telephone 18.938 3,612 628 23,652 3.010 744 Management Insurance SubsGriptions Stationery & general expenses Accounting fees Employee costs Lifeline system Professional fegs Bad debt Depreciation 2,269 662 2,017 1,140 29.089 2,003 7,509 2,876 300 2.214 617 1,182 1,020 25.641 1,521 4,376 300 Routine MaintenanGe 65,582 47,332 Charitable Expenditure 658 216 Total Operatlng Expenditure 137 284 111 825 Operating Surplusl(Deficitl 14,588 12,442 Other Operatlng Income Charitable donations Interest received Investment income Interest payable 250 638 38,640 450 416 35,171 Surplus on Ordlnary Aetlvltles 24.940