2022-12-31-accounts

The Henry Poad Trust Annual General Meeting

1[st] January – 31[st] December 2022 Date: 1[st] June 2023

Venue: Clerk’s Home Date: 1[st] June 2023 Time: 19.30

1.0 Chairman’s Welcome:

The Chairman, Mr Christopher Delbridge, said that he was sure that everyone present would wish take a minute’s silence in remembrance of Mrs Marilyn Maddever, as a kind, wonderful person, as a friend and an exemplary trustee.

I would like to thank my fellow trustees for sparing the time to attend this meeting and for their contribution during the reporting period. I would also like to thank the Clerk and the Warden, Ms Clare Nicholas, for their support and hard work on behalf of the residents and the trustees throughout the reporting year.

The Chairman then went on to welcome his fellow trustees and the Clerk to the Annual General Meeting and thanked the Clerk for making his home available once again, after a break of nearly three years, for a meeting of the Trustees. He hoped that everyone was well and that they had, by taking the path of vaccination, avoided the worst effects of the Covid epidemic and latterly flu.

2.0 Apologies for absence: Nil. It should be noted that the Trustees have not yet appointed a replacement for Mrs Marilyn Maddever, mainly as a consequence of Covid-19 and flu still being present in the village.

3.0 Minutes of the previous meeting:

The minutes of the previous Annual General Meeting form an attachment to these minutes.

4.0 Matters arising:

4.1 The matter of a replacement for Mrs M. Maddever was raised by the Clerk, as it was becoming a matter of some urgency. There followed a discussion of possible candidates: it was felt that it was important that the Trust’s connection with the Maddever family should be maintain, if possible. This matter is addressed at Section 10 of these Minutes.

4.2 The problems arising from the trial and subsequent imprisonment for twenty-two years of Mr M. Hubbucks for multiple acts of sexual abuse against two girls (under sixteen) led to a vacancy at 8 Poads Trust . The Trustees appointed Mrs Kathleen Farrow, a former NHS Senior Sister to occupy

• 8 Poads Trust. All matters relating to the previous resident are now satisfactorily resolved.

5.0 Chairman’s report:

• 5.1 FY 2022 has allowed the Trust to make further progress towards the aim of being financially secure within the Objects of the Trust and the limits of its income. Strangely, the Trust’s maintenance programme has been constrained by the complete dearth of available builders in Cornwall. It was planned to paint the exterior of the properties during the reporting period, but it has proved impossible to find any professional painters willing to undertake the work. The coming recession, and the consequential property downturn, may release tradesmen to undertake work on behalf of the Trust during FY 2023.

• 5.2 Fortunately, our residents have remained in good health throughout the reporting period; although one resident, who was approaching his ninety-ninth year, has had to endure the rigours of a four-week hospital stay before returning to his own home.

• 5.3 One of the aims of the Trust ,during FY 2022 ,was to enhance the garden to the rear of the properties. The purchase of an elegant outdoor dining table and eight chairs, together with a parasol to cover the table, has provided many opportunities for residents to have their meals in the garden. The Trust’s gardener has maintained the gardens in an excellent state: the purchase of additional plants, some selected by the residents, has provided colour throughout the year and a garden the residents can be proud of.

• 5.4 Finally, the consequences of the different variants of Covid-19, together with influenza, has limited the opportunities to conduct face to face meetings of the trustees. However, email, text messaging , Zoom and phones, have allowed the trustees to deliberate on matters in collaboration with the Clerk/Treasurer.

6.0 Clerk’s Report:

• 6.1 An objective of the trustees has been to encourage the residents to support each other, in as far as they are able to do so. I am happy to say that the residents have greatly exceeded the trustees’ hopes in this respect. One group of the residents regularly dine out together: for example at Christmas a greatly expanded group went out for a celebratory meal. On a practical level, help with upgrading/resetting tablets or laptops etc, together with a variety of other supportive measures, has greatly improved resident cohesion. One resident, who had been the subject of bullying before he came to Poads Trust, has been positively transformed. When he

arrived, he was a recipient of the support of the residents. His newly developed confidence, in the friendly supportive atmosphere, encouraged by the Trust, has helped him to become a support for other residents.

A final example of the resident’s support for one another was the construction of a kitchen cabinet unit by Mr R. Ward, for a fellow resident, completely free of charge. The unit was designed and constructed to accommodate a small refrigerator and a small freezer at worktop level, to make both the refrigerator and freezer readily accessible for a very elderly resident whose mobility had become seriously impaired.

• 6.2 Unfortunately, a consequence of significant numbers of wealthy ‘incomers’, coming into the Cornwall, particularly on the north coast, is the construction of major new-build homes or significant upgrades to existing properties. This has led to a dramatic shortage of skilled labour throughout the county, together with a consequential increase in labour rates. In addition, the consequences of Covid-19, the Ukraine war and a dramatic increase in inflation, has driven a considerable uplift in the costs of materials and labour.

• 6.3 It was intended to paint the exterior of the Poads Trust properties during FY 2022. In addition, it was necessary to undertake urgent building work in one of the properties. The failure to be able to undertake this work has had a negative impact on the health of the resident (COPD related to black mould). Unfortunately, those builders who bothered to respond with prices, explained that they were unable undertake the work until late 2023, at the earliest. Also, the builder’s offered prices had increased by approximately 50%, due to materials and labour price increases. This has had an unexpected benefit: an uplift in the Trust’s end-of-year bank balance of £23,223.

• 6.4 The Trustees’ policy of upgrading its properties to the highest modern standards of habitability, consistent with budgetary constraints, has borne fruit by significantly reducing the Trust’s annual maintenance costs. The introduction of Nuaire PIV units into each property has, at a stroke, virtually eliminated damp arising from cooking, showers, washing machines etc. Whilst the cost of the PIV units has increased significantly during the reporting period, together with the installation and operating costs (the cost of electricity is covered by the Trust rather than the individual resident), the long-term benefits to the resident’s health and the reduction in maintenance/replacement costs repays the initial outlay within two years.

• 6.5 The Trust signed a contract with Stannah to service/repair the external stairlift on a bi-annual basis, together with an on-call 365-

day-year emergency response, plus the cost of replacement parts. In addition, the resident’s alarm system, provided by Cornwall Council’s alarm system (Al-Fi), has enabled residents in urgent need of medical help to be provided with an ambulance/paramedic. Latterly, it has been necessary for the Trust to request invoices from Cornwall Council for this service: possibly a consequence of Council staff working from home.

• 6.6 Due to a problem that originated with a leaking shower tray, together with a defective drain (pipework beneath the existing shower), it was necessary to replace the whole shower unit at 1 Poads Trust. The work was undertaken by AHM – a company with outlets throughout the country (a family-run business rather than a franchise) - undertook the work. Whilst the result was satisfactory, I would not employ this company again. Although contracted to start the work in early September 2022, the start-date was delayed twice before the work was finally completed on 19[th] December 2022. The delays meant that the resident was unable to use the shower for three months. To end on a good note: the Trust’s electrician, Mr Neil Tucker, has provided an exemplary level of service to the Trust. He invariably responds to emergencies within a couple of hours and always turns up at the promised time. Always aware of the Trust’s limited budget, he ensures costs are kept as low as possible, whilst maintaining the highest technical standards. Finally, Neil and his staff are friendly and entirely trustworthy with the residents: most importantly, they treat all residents with kindness, dignity and respect.

7.0 Treasurer’s Report:

• 7.1 Until the beginning of the reporting period, inflation had been at an historically low level for approximately ten years. During the reporting period, however, the Government’s measure of inflation peaked during the 4[th] Quarter at 11.1% (according to the Bank of England and confirmed by the Office for National Statistics). The Treasury’s measure inflation is currently 10.00%, although the level of food inflation remains well above this figure, i.e. 17% or more. The value of the funds held by the Trust in the bank account and in its ethical funds has depreciated slightly over the reporting period. However, in the long term, the value of the Trust’s assets will recover in line with growth in the economy.

• 7.2 The level of the Contribution (rent) for each of the Trust properties has remained static at £90.00/week for four years. The Contribution is historically based upon Cornwall Council’s Local Housing Allowance (LHA) for a one-bedroomed flat/one-bedroomed house in Plymouth/South East Cornwall: at the beginning of FY 2021, this figure was £91.60. Cornwall Council has been reticent to publicise the basis for their calculation of LHA for those claiming this benefit.

However, the amount charged for a privately rented property in Plymouth/South East Cornwall has increased significantly in the last four years: for example, an equivalent one-bedroomed flat in Menheniot is currently on the market at £620/month (opposite the Poads Trust, next to the hairdressing salon).

• 7.3 The Trust’s income derives solely from the Contribution (rent). The differential between rents of a restored Trust property and that of an equivalent privately rented one-bedroomed apartment (disregarding Warden Support) in Menheniot is in excess of £200/month. Consideration should be given to increasing the Contribution. This should only be achieved in a stepwise process over, say, three or four years. The majority of the residents of the Trust claim some level of Local Housing Allowance and Council Tax Allowance from Cornwall Council. Increasing the Contribution above Cornwall Council’s cut-off point for Housing Allowance would directly reduce a resident’s income by the amount of that increase. House-hold budgets for those on fixed low incomes are subject to, for example, inflation rates for basic items of food, currently in excess of 17%. However, there is a strong case for increasing the Contribution, see Section 9.0.

• 7.4 The Clerk/Treasurer requested the Trustees to consider raising the Contribution from the current £90 per week to £95 per week as of 1[st] January 2024 and by £5 per week per annum thereafter up to and including 1[st] January 2026, with the proviso that the level of the Contribution remains below the Local Housing Allowance (LHA) for the Plymouth/South East Cornwall area. The trustees discussed the matter, recognising the need to maintain/improve the properties whilst remaining within the financial constraints of Cornwall Council’s LHA.

LHA Rates for Cornwall

The current weekly rates for Cornwall are shown below. These are updated in April each year. There are different rates for different areas and every post code in Cornwall falls into one of these areas.

April 2023 rates

----- Start of picture text -----
1 Bed
1 Bed Self 3
Area Name 2 Beds 4 Beds
Shared Containe Beds
d
£169.1
Kernow West £80.97 £113.92 £143.84 £212.88
5
£159.9
Plymouth £73.50 £103.56 £134.63 £195.62
5
North
Cornwall £149.5
£70.00 £97.81 £123.12 £184.11
and Devon 9
Borders
----- End of picture text -----

When LHA is less than the rent:

Should LHA be less than the rent, the tenant has to make up the difference. In the event that the tenant needs extra help to pay the rent, they may be able to apply for a discretionary housing payment. However, the level of help is dependent on, for example, whether the tenant is in receipt of Pension Credit or Enhanced Pension Credit.

• 7.5 Notwithstanding the aforementioned pressures on income, Trust’s financial position is in excess of the prediction made at the end of FY 2021. The balance of the Trust’s bank account as of 31[st] December 2022 was £23,223.14, an overall increase of £7,490.49. This figure does not include the £8,100.00 transferred to CCLA for the purchase of COIF ethical funds (the level of savings was increased from £600/28-days to £700/28-days during FY 2022). It is proposed that as of 1[st] August 2023, the purchase of COIF ethical funds should be increased to £800/28-days, providing the Trust’s finances permit.

The trustees discussed the need to enhance the purchase of the Trust’s level of COIF units to £800 per 28-day period. It was unanimously agreed that this enhanced level of saving should begin at the end of July 2023, finances permitting.

• 7.6 The prices of materials and services have increased dramatically during the reporting period, particularly so for imported materials such as timber and for products that require significant use of energy during their manufacture, or products imported from abroad to the UK due to high fuel costs. In addition, labour rates have increased significantly, as have business taxes. These factors have combined to create a ‘perfect storm’ in the materials/labour costs which, in its turn, has made budgeting more difficult to predict. Prudence in making provision for repairs and general maintenance suggests that these costs may increase by more than 30%.

• 7.7 The loans taken out to assist with upgrading two of the properties and to repair a third chimney have proved highly costeffective. The discounted value of the loans (£17,500) repayable at 0.00% per annum interest over ten years (at the rate of £1,517.50 per annum) was eminently preferable to drawing down the Trust’s capital. However, with nine years to repay the joint loan, and with the Bank of England’s estimate of the rate of inflation exceeding 11.1% (Nov 2022), suggests that the discounted value of the loan, by the date of the final payment, could approach 30%+. This more than justifies the decision to fund the works using the NAA’s loan facility.

• 7.8 The balance of the Trust’s bank account with Lloyds Bank plc at the end of FY 2022 was £23,223.14. It was anticipated that this balance should have been significantly lower (£16k or less) due to defraying the cost of labour/materials with which to paint the exterior of the Poads Trust properties.

8.0 Repair/Upgrade Programme 2023:

8.1 It is essential that the exterior of all of the Trust’s properties be painted during the late Spring and early Summer 2023. It is anticipated that the cost may be in the region of £19-20k.

8.2 The cost of refurbishing N[o] 10 Poads Trust during the period April-May 2023 was difficult to determine, as the previous residents had occupied the home for 35 years. The survey and possible total upgrade of the electrical system could cost in excess of £6k. Two new high-efficiency Economy 7 wall heaters (1.0kW and 1.5 kW respectively) may cost £1.2k, redecoration, new skirting boards, plus a new fireplace + electric fire with coal effect, new LED lighting throughout, plus carpeting and sound-absorbing underlay in the bedroom, living room and hall will bring the total to £12-15k.

8.3 The work at 7 Poads Trust is planned to commence 29[th] April 2023. The resident will be away for two weeks and so work aimed at eliminating a damp problem, removal and replastering as necessary, plus the removal and reinstallation of the living room window. There may be a need to replace the skirting boards following the replastering. This will require the partial redecoration of the living room and bedroom.

9.0 Draft budget for FY 2023:

9.1 In line with a prudent approach to budgeting, there is a provision of ten per cent made for voids in each financial year. The income from the Contribution (currently £90.00 per week) indicates an income £49,900.0 in FY 2022 and £51,480.00 in FY 2023 (assuming no vacancies). This income uplift is based on properties being vacant for significant periods due to extensive property upgrades or exterior work being undertaken. The figure for budget forecast FY 2023 is based on 100% occupancy of the properties. These income projections will remain constant unless the Contribution is increased. The pressure on private sector rents in Cornwall, due to the purchase of homes for Air B&Bs or holiday homes, has dramatically reduced the

supply of homes for rent in this area: thus as the supply of homes decreases, private sector rents increase. The Trust’s policy of maintaining the Contribution just below the level of LHA should continue to rise for the foreseeable future. However, this does not preclude an increase in the Contribution, at a rate of £5 per week per annum until it

is once again just below the level of the LHA. It is anticipated that this figure could be achieved by 1[st] January 2026.

• 9.2 In order to combat the corrosive effects of inflation on the Trust’s balance sheet, it is intended to increase the Contribution from £90.00 per week to £95.00 per week from 1[st] January 2024. This increase should have no effect on those residents of the Trust who are in receipt of the full amount of Rent Allowance and Council Tax Allowance as the present level of the Local Housing Allowance (LHA) is set at £103.56 per week (April 2023) for the Plymouth area. It is further recommended that the Contribution be increased by an additional £5.00 per week commencing 1[st] January 2025, bringing the Contribution to £100.00 per week. As of 1[st] January 2026 It should increase to £105.00 per week. It will remain at £105.00 per week until the level of LHA exceeds £115.00 per week ,when the situation should be reviewed again. An increase of £5.00 per week in the level of the Contribution as of 1[st] January 2024, represents a 5.60% increase. However, the Chancellor of the Exchequer is due to reduce the subsidy currently paid to Electricity companies by £600 as of 5[th] April 2023.

• 9.3 The residents of the Trust are due to receive an approximately 10.1% increase in their State Retirement Pension in April 2023. Unfortunately, that increase will be more than offset by increases in utility bills, not to mention ongoing inflationary increases in food bills, currently in excess of 20% in super-markets. Nevertheless, it is proposed to increase in the Contribution by £5.00 per week, delayed until 1[st] January 2024.

• 9.4 In 2025 the Government is due to introduce a requirement for a Minimum Energy Performance Certificate for each property. The cost of such certification may be as much as £6k per property to achieve the desired standard. Whether this legislation is appropriate or applicable to older buildings such as the Poads Trust (original structure dates to 1746) is unclear at present. In any case, the Trust will need to make provision for a Quinquennial inspection during FY 2024. The cost of the inspection (+ report) is likely to exceed £8.5k.

• 9.5 The opening balance for FY 2023 is £23,223. It is anticipated that the Trust will suffer a loss of income in excess of £14k due to the refurbishment to be carried out at 10 Poads Trust (prior to welcoming a new resident). In addition, work must be undertaken at 7 Poads Trust to remove and reinstall the living room window & two bedroom windows as a means of eliminating damp on the inside walls, plus any work in way (new skirting board) and redecoration. Together with replastering of the kitchen wall of 2 Poads Trust, due to ingress of damp. In addition, the source of damp in the property will addressed by inserting a stainless steel rail above the lead

flashing on the first floor landing to prevent water ingress. It is anticipated that the cost of these works will exceed £10k.

• 9.6 Finally, the whole of the exterior of the Poads Trust will need to be painted: all wooden window frames, wooden doors, drain pipes and gutters, soffit boards, previously painted cemented surfaces, together with the replacement of grab-handles adjacent to doorways. This work is anticipated to take two to three weeks and is budgeted to cost, including materials, approximately £19-20k.

• 9.7 In order to optimise the Trust’s cash-flow in the period May through July, it may be necessary to suspend the purchase of units from CCLA for three months and/or even to sell some units. This will allow the Trust to maintain a working balance in its bank account. For example, the Trust has to pay contractors for work to be carried out at Nos 2, 7 and 10 Poads Trust at the of April and through May. It is anticipated that the cost of insurance (due in July 2023) will increase to £2,700 .

10.0 A Replacement Trustee:

• 10.1 Whilst recognising the invaluable contribution made by Mrs Marilyn Maddever to the Trust prior to her sad death, it is essential that the Trust identify a suitable candidate to bring trustee numbers up to full-strength.

• .

• 10.2 The ideal candidate should have a close ties to the village and an extensive knowledge of its residents. In particular, the preferred candidate should have a good business background and understand the needs of the older residents of the village and surrounding area. Above all, the ideal candidate should be a kind, decent and an essentially practical individual with an excellent moral ethos.

• 10.3 Whilst the foregoing represents a high bar, it is essential that a potential candidate for the position of trustee should also be aware of the needs of older individuals, viz: physical, medical health, mental health and/or financial.

• 10.4 To this end, it was agreed that the Clerk should make an informal approach to the following persons in order of their appearance in the list below:

Mrs Celia Maddever, Mr Colin Maddever, Mr Tom Maddever, Mr Lyndon Gough, Mrs Margaret Juckett and Mr Mark Alsop.

The Clerk agreed to approach Mrs Celia Maddever as soon as possible to sound her out.

11.0 Staff Compensation:

• 11.1 The Warden has made a significant contribution to the welfare and safety of each of the residents of the Trust. In addition, she has forged close bonds with all of the residents and has been an ever present source of help and solace when events have caused them some distress. The Clerk recommended that the Warden’s salary be

increased by £2CQ per annvm to refiert hercontribLrtion to the Trust, her Ca￿ for the residents and finalty. her support for Clerk. 11.2 wh1lsttheTru￿ properties continue to be up8raded tothe highe￿ possible standard. the weffare and safety of the residents remains the prirnary the role and duty ofthe Clerk. The Trust and its reS￿ents have weathered the events surrounding the I￿kdOWn period due to co￿d-19. Whilst this involved co￿fvI rnanagement of the Trust and ils residents. the Clerk recommended that hi5 salary remain frozen for FY 2023. 12.0 th•rlty Commlsyon Annu•l Return: 12.1 The ènnual return to the Charity Commission will be made immediately followin8 the completion of the Annual General Meeting ol the Henry Poad TTU5t. 13.0 Any Other Bu￿nesS. 13.1 Mr C. Delbrid8e. stated that he wished to stand down from the position of Chaimia with immediate effett. Foll¢)wing a discussion in wh4ch eath trustÈe voited the fart that theywere saddened by the Chairrnan's decision.. ht5 reasons were undeT5¢andable. Mr Delbridge stated that he wshed to thank his fellowtfustees fof their support throu8hoLrt his tenure as Chaimian. He also thanked the ClerkfTreasurer and the Wafden for their unstintifig support to him, the Tru￿ afid the residents. 13.2 There followed a dlscuss6Dn amongst the trnstees during whi(h it was felt that Mr siephen PeaTce should accept the position of Chairof the Henry Poad Trust. Mr Pearce agreed to accept the posilion of Chair. albert wrth an understandable deBree of reticence. 14.0 1)ate of Next Meeti￿. l Dateof the The￿ meeting-io be anrw)unced as and when reqUI￿d bythe Trustee5. Chairman'sSignature=.... Chairman's Name.. Clerk's Signature=._..... lerk's Name..

The Henry Poad Trust Statement of Accounts 01/01/2022 – 31/12/2022 22[nd] May 2023

Balance of Accounts

Balance of account as of 1[st] January 2022 £15,732.65

Contributions (rental income) for FY 2022 £51,306.48 EDF overpayment £180.28 COIF interest £781.09 Total Income FY 2022 £68,000.50 Total Expenditure FY 2022 £44,776.36

Balance of account as of 31[st] December 2022

£23,223.14

Value of CCLA units as of 31[st] 2022 (Bid-market). £30,515.85[4]

Value of CCLA units as of 31[st] December 2022 (Mid-market). £30,470.20[3]

(Mid-market value used to estimate of current assets)

Sub-total:

Total assets available to the Trust as of 31[st] December 2022 £53,693.34[3]

The Henry Poad Trust Statement of Accounts 01/01/2022 – 31/12/2022 22[nd] May 2023

Appendix 1

Record of Expenditure

List of Contractors:

PP Construction £62.00 Neil Tucker Electrical £4,519.44 Katie Hughes (Gardening) £660.00 Stannah Stairlifts – Svc Contract (external stairlift) £391.70

1

South View Gas R. Ward (materials/mileage) AHM Shower Installation (1 Poads Trust) Sub-total:

£80.00 £92.17 £4,100.00 £9,905.31

Services/Supplies:

NAA – Subscription + donation NAA – Loan Repayment Lloyds Bank Safe Custody Storage BBC TV Licensing (over 75s) BT Warden’s phone EDF Grout Insurance Cornwall Council Al-Fi First-Aid supplies Emergency Light P. Atkinson (new light 7 PT) Sub-total:

£300.00 £1,417.50 £150.30 £37.50 £297.75 £550.00 £2,497.06 £854.70 £11.45 £27.98 £85.00 £6,229.93

Trust Administration Costs:

Warden’s Salary Warden’s Backpay + pay in lieu of untaken holidays £350.00 Warden’s Heating Allowance (1/10/22-31/12/22) £400.00 Clerk’s Salary Clerk’s Backpay Clerk’s Expenses Sub-total:

£3,050.00

£5,750.00 £350.00 £10,641.12[1]

£20,541.12

COIF savings transferred to CCLA to purchase ethical savings units £8,100.00[2]

Total Expenditure for period 01/01/2022 - 31/12/2022 £44,776.36

Notes:

1. The Clerk’s expenses are inflated by the purchase of equipment, materials and services on behalf of the Trust. The Clerk’s expenses are submitted to the Chairman and are supported by receipts against all purchases on behalf of the Trust, rather than use a Trust credit card which is potentially open to the risk of fraud.

2. During the reporting period (01/01/2022 – 31/12/2022) the Trust purchased COIF units via CCLA at the rate of £600.00 every 28 days. This figure was increased to £700.00 every 28 days with the approval of the Trustees. The level of saving was £8,100.00 by the end of the

2

reporting period. This enabled the Trust to purchase 3,063.79 units during the reporting period. It is the policy of the Trustees, that the Trust should hold cash and securities to meet it its obligations for at least 18 months. In the event of a dramatic loss of income: such as a catastrophic loss of the property due to fire, flood or other eventualities there would be a consequential loss of income. Insurance claims and rebuilding in the event of total loss are, understandably, time consuming. The Trustees felt that prudence suggests a projected savings figure of £60,000, plus the balance of account, should be the aim, given the current level of liabilities (NAA loan repayments).

1. The level of savings for FY 2022 was £8,100. It is proposed to increase the Trust annual savings for FY 2023 to £800 every 28-days, equivalent to £9,600 per annum. This proposal is subject to endorsement by the Trustees at the Annual General Meeting. In valuing the Trust’s COIF units, the mid-market value was adopted to make an estimate of the Trust’s assets as of 31[st] December 2022.

2. The value of the total holding of COIF assets fell during the reporting period as a consequence of the Truss Government’s intention to reduce taxes by increasing Government debt. This was a consequence of a significant fall in stock-market values, which necessitated Bank of England intervention in the pension market. The stock-market will, in the short-to-medium term recover, leading to a consequential recovery in asset values. I recommend continuing with the purchase of COIF units at the proposed level of saving, viz: £800.00 per 28 days.

3. The NAA loan liability (approximately £16,000.00 as of 31/12/2022 at 0% interest) repayable over nine years represents, taking into account the current and future level of inflation, an excellent use of the Trust’s funds.

3

David Jolliffe

26[th] May 2023 3RS

22 Fourgates, Menheniot, Liskeard, Cornwall PL14

Mr J. Marriott Clerk to the Trustees The Henry Poad Trust C/o 5 The Rodings Menheniot Liskeard Cornwall PL14 3SS

Dear Mr Marriott,

I have reviewed and audited the accounts of the Henry Poad Trust for FY 2022 as requested by the Trustees. I conducted a detailed reconciliation of the Trust's bank statements, cheque books, invoices, receipts and paying-in books, together with the CCLA records relating to the Trust's purchase of ethical units. The accounts accurately reflect the Trust's income and expenditure for the reporting period 1 January 2022 - 31st December 2022 as recorded in the Balance of Accounts. The Almshouse Association interest-free loan taken out over ten years, to undertake urgent rebuilding of three chimneys, is well within the Trust’s capability to repay.

The Trust’s FY 2022 income: £68,000 is somewhat lower than the figure for FY 2021 (£77,683). This reflects a loss of rental income due to a prolonged vacancy of the properties: the properties required significant upgrade/refurbishment, which were both time consuming and costly. It would be appropriate to mention that the dramatic rise in the costs of building materials and labour during this reporting period. In addition, the cost of upgrading of electric wiring and fittings (in particular, the installation of an eco-friendly electrical heating system and certification of installations to the latest IEE standards) has increased refurbishment costs, when compared with pre-Covid levels.

In spite of the foregoing, the Trust's long-term financial security has continued to improve, as reflected by its increased holdings with CCLA. The demand for the Trust's properties has remained strong; ensuring that income will continue to be maximised into the future. The Trust's expenditure, whilst significant, has been made in support of demonstrable improvements in the material state of its housing stock. These improvements to the resident’s homes have reduced their utility bills and

the Trust’s maintenance costs. I have suggested to the Trustees that the rental income should be increased to maximise the Trust’s income.

The Trust has effective financial policies and controls in place which minimise the risk of fraud. In addition, the Trust's prudent management of its finances has reduced its operating and administration costs. All payments for goods and services are made by cheque. There are no cash payments. The Trust does not make use of debit/credit cards or online banking as the Treasurer and the Trustees feel that these payment methods currently represent a significant risk to the Trust’s finances. Payments in excess of ten thousand pounds require the signature of two Trustees, one of which must be the Chair. Cheques relating to the payment of the Clerk/Treasurer’s expenses (supported by invoices/receipts), require the signature of the Chair. In the absence of the Chair, cheques for salary/expenses must be signed by two Trustees.

Finally, the Trust has increased the purchase of its CCLA holdings from £600 per 28-days to £700 per 28-days during the reporting period. I have suggested that the Trust increase its purchases in FY 2023 to £800 per 28days. The Trust has consolidated its financial position during FY 2022, whilst continuing to demonstrate a prudent approach towards its finances.

Yours sincerely

D. Jolliffe