2022-03-31-accounts - Mersea Island Trust

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

MERSEA ISLAND TRUST

ACCOUNTS AND TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2022

Regulator of Social Housing registration number: L1259

Charity registration number: 206064

MERSEA ISLAND TRUST

FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022

Contents
	Page
Mersea Island Trust Information	1
Trustees Report	2-4
Independent Auditor’s Report	5-7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Cash Flows	10
Notes to the Financial Statements	11-19

MERSEA ISLAND TRUST

TRUST INFORMATION FOR THE YEAR ENDED 31 MARCH 2022

Charity registration number 206064 Regulator of Social Housing registration number L1259 Trustees Catriona Banting Jo Jackson (appointed January 2022) Susan Jenner Elizabeth Kirby (resigned September 2021) Linda Macdiarmid (resigned December 2021) David Payne (Honorary Treasurer) Cheryl Rutter Laurie Sharpe (appointed January 2022) Heather Spalding (Chairman) Committee members Beryl Balls (resigned November 2021) Yvonne Day (appointed October 2021) Ian Derrick (resigned December 2021) David Gibbons (Honorary President appointed August 2021) Andrea Selway Tenant representatives Jim Crickett Joan Cotton Registered office Akhurst Court Melrose Road West Mersea Essex, CO5 8JB Accountants and auditor Whittles The Old Exchange 64 West Stockwell Street Colchester Essex, CO1 1HE Solicitor Ellison & Co Headgate Court Head Street Colchester Essex Bankers Barclays Bank plc 9 High Street Colchester Essex

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The trustees of Mersea Island Trust present their report, and the audited financial statements of the year ended 31 March 2022.

Organisation

The Mersea Island Trust is governed by the trustees who have delegated the operation of the Trust’s activities to a Main Committee consisting of trustees and others which meets at least quarterly. The trustees hold an annual general meeting to which committee members are invited. Names of the trustees and committee members are shown on page 1.

Individuals interested in acting as trustees are appointed after they have been recommended as having the qualities and skills expected of trustees and after attending a committee meeting. Training is given where appropriate, dependent upon the requirements of each individual trustee.

Financial review of the past year and future developments

The accounts show the financial performance for the year ended 31 March 2022. The surplus for the year is £23,011 (2021: £69,977). An amount of £5 was transferred to the Provisional Aftercare and Community Fund in the year (2021: transfer from of £3,193).

The operating costs of the Trust are shown as a one line entry on page 8 of the accounts and detailed under note 2 on page 14.

During the year there have been a number of changes in the tenants in the two homes run by the Trust and this has increased the level of voids as when a tenant leaves it is often necessary to redecorate and modernise the units before new tenants move in and this can lead to several weeks between tenancies.

The Covid-19 lockdowns during 2021/22 have continued to impact the workings of the Trust staff and volunteers and the main aim has been to keep all our tenants as safe as possible during this difficult period. To date the financial impact on the Trust has remained minimal although it has taken longer to re-let units as they have become vacant due to longer lead times to carry out refurbishments and also the difficulty of showing potential new tenants the available units.

Several of the trustees are also finding that management of the Trust is becoming very demanding and a full time commitment, especially in critical areas where their professional knowledge is limited. As a result, a general manager was appointed during the year to take on some of these responsibilities in the day to day management of the trust.

The Trustees plan to continue to operate the homes in the manner in the future to best meet the needs of their users.

Objectives and strategies for achieving those objectives

The main objective of the Trustees of the Mersea Island Trust are to:

Keep to and apply, national standard of service and the implementation of a risk Management Statement and National Occupational Standard.

Work in partnership with other organisations to meet the needs of the Tenants and Staff of the homes. To use their discretionary powers to apply funds for the benefit of the elderly residents of Mersea Island and in particular, to acquire and run homes for those purposes. There are two homes, Akhurst Court and Mersea Court, situated in West Mersea, each of which have representation on the Main Committee.

Code of governance

The Mersea Island Trust was established as a charitable trust by a declaration of trust dated 2 May 1961. The founder trustees were headed by Dr J Llewellyn Jones. The Mersea Island Trust is registered as a charity with

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES - continued FOR THE YEAR ENDED 31 MARCH 2022

the Charity Commissioners (no. 206064) and as a registered social landlord with the Regulator of Social Housing.

The input of volunteers

The Trust has no full-time administrative staff and relies heavily upon the input of unpaid volunteers to act as trustees and committee members.

Public benefit statement

The Trust enables the elderly to continue living on Mersea Island. The Trust has had due regard to the guidance published by the Charity Commission on public benefit.

Reserves Policy

The Trustees have examined the charity’s requirements for reserves in the light of the main risk to the organisation. It is to establish a policy where the reserves are to be used to maintain the capital commitment of the Trust in keeping within the requirements of the Health and Safety requirements and where necessary the improvement of the facilities.

These reserves are analysed in note 12 on page 18 and where required revalued as required by company law.

Availability and value of assets

The trustees believe that the Trust’s assets are available and adequate to fulfil the obligations of the Trust. The market value of the trust’s land is substantially in excess of its book value at the year end, as shown in note 9 to these accounts.

Value for money

The Trust is charged with the responsibility for providing and demonstrating that it does provide value for money. The Trust is constantly working to manage its resources to maximise cost effectiveness and efficiency, while at the same time providing quality services to meet tenants needs.

The Trust manages its value for money responsibilities by its approach to budgeting, risk management, interest rates, service quality, voids management and energy consumption whilst keeping an optimum balance between realistically low costs and a quality service.

The Trust’s performance against the seven metrics required by the Regulator of Social Housing are:

		2022	2021	Variance % shift	Comments
1	Reinvestment	N/A	N/A
2	New supplydelivered	N/A	N/A
3	Gearing	-%	-%		Loan fully repaid in previousyear
4	Earnings before interest, tax, depreciation major repairs / interest cover	-%	74,143%		Loan fully repaid in previous year
5	Headline social housing cost per unit	£7,696	£6,168	£1,528 24.77%	Increased staffing costs and significant expenditure on internal fire doors
6	Operatingmargin	3.77%	17.95%	(14.18)%	See above
7	Return on capital employed	.81%	3.74%	(2.93).%	See above

The Trust has complied with the Governance and Financial Viability Standard.

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES - continued FOR THE YEAR ENDED 31 MARCH 2022

Donations

During the year the Trust made no charitable donations.

Trustees’ responsibilities

The trustees are responsible for preparing the report and financial statements in accordance with applicable law and regulations.

Registered social housing legislation require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of its income and expenditure for that period.

In preparing these financial statements, the Board of trustees is required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the association will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and enable it to ensure that the financial statements comply with legislation and the Accounting Direction for private registered providers of social housing in England 2019. It has general responsibility for taking reasonable steps to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities and for maintaining a satisfactory system of control over the Trust's books of accounts and transactions.

Disclosure of information to the auditors

We, the trustees of the Trust who held office at the date of approval of these financial statements as set out above each confirm, so far as we are aware, that:

there is no relevant audit information of which the trust’s auditors are unaware; and
we have taken all the steps that we ought to have taken as Trustees in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

H Spalding

Chairman on behalf of the trustees 25 July 2022

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERSEA ISLAND TRUST - continued

FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of Mersea Island Trust for the year ended 31 March 2022 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Trust’s affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trust's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report , other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report[3] . Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement 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 to report that fact.

We have nothing to report in this regard.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERSEA ISLAND TRUST - continued

FOR THE YEAR ENDED 31 MARCH 2022

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’s report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

a satisfactory system of control over transactions has not been maintained.

Responsibilities of the Trustees

As explained more fully in the Trustee’s Responsibilities Statement set out in the trustees report, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the board is responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the trust or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Trust through discussions with trustees and from our knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Trust, including the Charities Act 2011,data protection, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of trustees; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF MERSEA ISLAND TRUST - continued

FOR THE YEAR ENDED 31 MARCH 2022

We assessed the susceptibility of the Trust's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: ·

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims.

Use of our report

This report is made solely to the board of trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the board of 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 trust and the board of trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Whittle & Partners LLP Statutory Auditor The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE

WHITTLES

Chartered Accountants & Registered Auditors 25 July 2022

MERSEA ISLAND TRUST

STATEMENT OF COMPREHENSIVE INCOME (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2022

Note Turnover 2 Operating costs 2 Gross surplus Administrative expenditure 2 Other operating income Operating surplus 2 Interest receivable and similar income 5 Interest payable and similar charges 5 Surplus on ordinary activities for the year 4 Revaluation of tangible fixed assets Total comprehensive income for the year	£ 336,246 323,242 13,004 316 - 12,688 10,323 - 23,011 - 23,011	2021 £ 323,544 265,221
		58,323 250 -
		58,073 12,044 (140)
		69,977 -
		69,977

There are no recognised gains and losses other than the surplus reported above.

Note of historical cost surpluses and deficits

There is no difference between the results disclosed in the income and expenditure account and the result on an unmodified historical cost basis.

The accounts were approved by the Committee on 25 July 2022 and were signed on its behalf by:

H Spalding - Chairman

D Payne - Trustee

MERSEA ISLAND TRUST

BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Housing properties at depreciated cost Less: Social housing grants Low carbon buildings programme grant Other fixed assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Total net assets Reserves Income and expenditure reserve 12 Designated reserve 12 Total Reserves	2022 £ 1,747,596 (441,387) (64,846) 1,241,363 20,779 1,262,142 2,961 321,892 324,853 (13,023) 311,830 1,573,972 - 1,573,972 1,534,171 39,801 1,573,972	2021 £ 1,781,284 (441,387) (64,846)
		1,275,051 7,334
		1,282,385
		1,934 283,273
		285,207 (16,631)
		268,576
		1,550,961 -
		1,550,961
		1,511,165 39,796
		1,550,961

The financial statements were approved and authorised for issue by the Committee on 25 July 2022 and were signed on its behalf by:

H Spalding Chairman

D Payne Trustee

The notes on pages 11 to 19 form part of these accounts.

MERSEA ISLAND TRUST

STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2022

Note Cash flow from operating activities 14 Net cash flow from operating activities Cash flow from investing activities Payments to acquire tangible fixed assets Interest received Net cash flow from investing activities Cash flow from financing activities Repayment of long term loans Interest paid Net cash flow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 April 2021 Cash and cash equivalents at 31 March 2022 Cash and cash equivalents consists of: Cash at bank and in hand Cash and cash equivalents at 31 March 2022		2022 £ 55,702 55,702 (17,112) 29 (17,083) - - - 38,619 283,273 321,872 321,892 321,892	2021 £ 106,198
			106,198
			(7,334) 170
			(7,164)
			(22,720) (140)
			(22,860)
			76,174 207,099
			283,273
			283,273
			283,273

1 Summary of significant accounting policies

(a) General information and basis of preparation

Mersea Island Trust is registered as a charity with the Charity Commissioners and as a registered social landlord with the Regulator of Social Housing and is a registered provider of social housing in the United Kingdom. The address of the registered officeand operating address is given in the Trust information on page 1 of these financial statements. The nature of the Trust’s operations and principal activities are set out in the Trustees report on page 2.

The Trust constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2014, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the Trust and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Going concern

The coronavirus pandemic has significantly disrupted individuals’ personal lives and businesses’ economic prospects in the UK and across the globe.

The Trust has not been negatively affected by COVID-19 and has continued to operate as before.

We have continued to prepare the accounts on a going concern basis and deem this appropriate. We do not consider that a material uncertainty about our going concern status currently exists. In making this assessment we have considered the likely operating conditions for a period of twelve months from the date of our approval of these accounts.

(c) Tangible fixed assets

Tangible fixed assets (including social housing properties) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Housing properties, flats

are stated at cost less Housing Association Grant (HAG). Until 1999 it was considered that housing properties were maintained in a state of repair such that their estimated residual value was not less than their cost so no provision was made on an annual basis for depreciation.

Since 1 April 1999 depreciation has been charged at 2% of the estimated cost, net of grants received, of erecting the buildings and making improvements. Other fixed assets are stated at cost less accumulated depreciation. Depreciation is charged at 15% per annum on the reducing balance of written down value.

The useful economic lives of all tangible fixed assets are reviewed annually.

(d) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.

(e) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financing transaction it is measured at present value.

(f) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. The level at which an impairment is assessed is the sheltered housing at each site. The key indicators considered are state of repair and occupancy levels.

If such indication exists, the recoverable amount is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in expenditure through the statement of comprehensive income.

(g) Provisions

Provisions are recognised when the Trust has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Provisions for cyclical maintenance or major works to existing stock are not made unless they represent commitments or obligations at the Balance Sheet date where there is no discretion to avoid or delay the expenditure.

Recycled Capital Grants Fund

Capital grants can be recycled under certain condition, if a property is sold, or if another relevant event takes place. Recycled grants can be used for projects approved by the Regulator of Social Housing and they are credited to the Recycled Capital Grant Fund within liabilities.

In certain circumstances, such as the sale of housing properties, capital grants may be repayable, and, in that event, is subordinated to the repayment of other loans by agreement with the Regulator of Social Housing. It is accounted for as soon as the liability arises within creditors: amounts falling due within one year. When any grant to be recycled or repaid is less than the grant relating to the disposal, the difference is treated as abated grant. Abated capital grants are treated as a component of the surplus or deficit on disposal.

(h) Turnover and other income

Turnover is measured at the fair value of the consideration received or receivable. The policies adopted for the recognition of turnover are as follows:

Turnover represents rental and service charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and the Regulator of Social Housing.

Interest receivable

Interest income is recognised using the effective interest method is recognised as the Trust’s right to receive payment is established.

(i) Employee benefits

When employees have rendered service to the Trust, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

2 Particulars of turnover and administrative expenditure from social housing lettings

Turnover Rent receivable Service charge income Void losses Turnover from social housing lettings Administrative expenditure Management (including non-routine maintenance) Service charge costs Routine maintenance Depreciation of housing properties Administrative expenditure on social housing lettings Training Total operating costs Operating surplus on social housing lettings	2022 £ 176,184 169,146 345,330 (9,084) 336,246 57,968 128,474 99,445 37,355 323,242 316 323,558 12,688	2021 £ 180,587 163,478
		344,065 (20,521)
		323,544
		33,492 135,682 62,363 33,684
		265,221 250
		265,471
		58,073

3 Accommodation owned and in management

ccommodation owned and in management
	Akhurst	Mersea
Completed units: Housing for older people	Court	Court	Total
Number of units at 1 April 2021	22	20	42
Changes in year	-1	-	-1
Number of units at 31 March 2022	21	20	41

One unit in Akhurst Court has been removed and will be incorporated in an existing unit in 2022.

In addition there is a warden’s flat at Akhurst Court.

4 Surplus on ordinary activities

Surplus on ordinary activities is stated after charging:

Auditor’s remuneration - for audit Auditor’s remuneration – for non-audit services Depreciation of tangible fixed assets	2022 2021 £ £ 5,796 5,520 1,590 1,542 37,355 33,684

5 Interest and other finance income and charges

a) Interest receivable and similar income

Bank interest receivable Solar panel income b) Interest payable and similar charges Bank loans and overdrafts	2022 £ 29 10,294 10,323 2022 £ - -	2021 £ 170 11,874
		12,044
		2021 £ 140
		140

6 Board and key management personnel remuneration

No emoluments were paid or were receivable by the trustees or committee.

7 Staff costs

The average number of employees during the year was 6 (2021: 5). They were all employed as wardens, deputy wardens, cleaners or co-ordinators.

The aggregate remuneration of such employees was as follows:

he aggregate remuneration of such employees was as follows:
Wages and salaries	2022 £ 90,885 90,885	2021 £ 67,792
		67,792

There are no employees who received more than £60,000 as their employee package.

8 Tax

Mersea Island Trust is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes provided its income is applied to charitable purposes only. Accordingly, no provision is made for corporation tax but this assumes that income continues to be applied solely to charitable purposes.

9 Tangible fixed assets

Cost: At 1 April 2021 Additions Disposals At 31 March 2022 Grants from the Housing Corporation At 1 April 2021 and 31 March 2022 Grants from Low Carbon Buildings Programme At 1 April 2021 and 31 March 2022 Depreciation: At 1 April 2021 Charge for year Depreciation on disposals At 31 March 2022 Net book value: At 31 March 2022 At 31 March 2021	Housing properties for letting - freeholds £ 2,190,652 - - 2,190,652 441,387 64,846 409,368 33,688 - 443,056 1,241,363 1,275,051	Furniture fittings and equipment £ 7,334 17,112 - 24,446 - - - 3,667 - 3,667 20,779 7,334	Total £ 2,197,986 17,112 -
			2,215,098
			441,387
			64,846
			409,368 37,355 -
			446,723
			1,262,142
			1,282,385

All of the total cost of household properties relates to completed schemes.

The freehold property at Akhurst Court, Melrose Road, West Mersea is vested in the name of the official custodian for charities. Mersea Court was formerly the Coronation Memorial Trust property and is a freehold property vested in the name of the official custodian for charities. Deducting grants from the cost of the housing properties contravenes the Companies Act however the trustees feel that this is necessary to show a true and fair view of the position.

During the year expenditure of £99,445 (2021:£62,363) on existing properties was made which relates to routine maintenance rather than an enhancement of economic benefits to the housing properties.

Current rebuilding costs for insurance purposes inclusive of fees and VAT are £4,267,935 for Akhurst Court and £2,940,930 for Mersea Court.

Grants from the Housing Corporation may become repayable under certain restricted circumstances such as the sale of property. In this event the grant repayable would become a current liability subordinated to other creditors.

10 Debtors

Trade debtors (gross social housing rent arrears) Other debtors	2022 £ 327 2,634 2,961	2021 £ 284 1,650
		1,934

11 Creditors: amounts falling due within one year

Trade creditors Rents paid in advance Other creditors Accruals and deferred income	2022 £ 878 350 5,303 6,492 13,023	2021 £ (32) 337 9,882 6,444
		16,631

12 Reserves

eserves
At 31 March 2021 Surplus for the year Transfers At 31 March 2022	Provisional Aftercare & Community Contingency Fund £ 39,796 - 5 39,801	Income and Expenditure Account £ 1,511,165 23,011 (5) 1,534,171	Total £ 1,550,961 23,011 -
			1,573,972

a) Income and expenditure reserve (Revenue Reserve)

The income and expenditure reserve represents cumulative surplus and deficits net of other adjustments.

b) The Provisional Aftercare and Community Contingency Fund (PACCF) (Designated Reserve)

This designated reserve represents those monies the trust has built up over the years to fund its work for and outside of the provision of sheltered accommodation at Akhurst Court and Mersea Court.

The movements on the PACCF during the year are included in the income and expenditure account shown on page 8 of the accounts. A transfer was made from the income and expenditure account to the PACCF, of the net movements in the year which are as follows:-

Defibrillators Interest received	2022 £ - 5 5	2021 £ (3,216) 23
		(3,193)

13 Auditors’ Ethical Standards

The relevant circumstances requiring disclosure in accordance with the requirements of APB Ethical Standard - Provisions Available for Small Entities are that, in common with many charities of our size and nature we use our auditors to assist with the preparation of the accounts. Our auditors also provide payroll bureau services.

14 Reconciliation of operating surplus to cash flow from operating activities

Surplus for the year Interest payable Interest received Depreciation and impairment of tangible fixed assets (Increase) in trade and other debtors Increase/(decrease) in trade and other creditors Net cash flow from operating activities	2022 £ 23,011 - (29) 37,355 (1,027) (3,608) 55,702	2021 £ 69,977 140 (170) 33,684 (212) 2,779
		106,198

15 Pensions

The trust operates a workplace pension scheme for employees. During the year the cost to the trust was £1,094 and at the balance sheet date an amount of £322 was due to the scheme provider.

16 Related party transactions

There were no related party tranactions during the year.