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2024-03-31-accounts

MERSEA ISLAND TRUST

ACCOUNTS AND TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2024

Regulator of Social Housing registration number: L1259

Charity registration number: 206064

MERSEA ISLAND TRUST

FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024

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 11-18
The following page does not form part of the statutory accounts
Property Revenue Account 193

MERSEA ISLAND TRUST

TRUST INFORMATION FOR THE YEAR ENDED 31 MARCH 2024

Charity registration number

206064

Regulator of Social Housing registration number

L1259

Trustees

Caitriona Banting Jo Jackson (Chairman) David Payne (resigned December 2023) Cheryl Rutter Laurie Sharpe Heather Spalding (resigned December 2023) Jayne Taylor (Treasurer) Rita Kemp

Committee members

Carole Butterfield David Payne (appointed December 2023) Yvonne Day Andrea Selway

Tenant representatives

Evelyn Rutter (appointed April 2023) Christine Chamberlain (appointed November 2023)

Registered office

Accountants and auditor

Solicitor

Bankers

Akhurst Court Melrose Road West Mersea Essex, CO5 8JB Streets Audit LLP C/O The Old Exchange 64 West Stockwell Street Colchester Essex, CO1 1HE Ellison & Co Headgate Court Head Street Colchester Essex Barclays Bank plc 9 High Street Colchester Essex

1

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

The trustees of Mersea Island Trust present their report, and the audited financial statements of the year ended 31 March 2024.

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 2024. The surplus for the year is £1,055 (2023: deficit £17,920). An amount of £553 was transferred to the Provisional Aftercare and Community Fund in the year (2023: transfer to of £100).

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 13.

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. A large refurbishment was carried out to Flat 19 Akhurst Court which amalgamated an adjacent previously empty room, which was additional to the original budget plan.

A general manager was appointed in mid 2021 to assist the Trustees with 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 is 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. There are two homes, ~~A~~ khurst 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 the Charity Commissioners (no. 206064) and as a registered social ~~l~~ andlord with the Regulator of Social Housing.

The input of volunteers

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

Public benefit statement

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES - continued FOR THE YEAR ENDED 31 MARCH 2024

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 17 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:

2024 2023 Varianc
e
% shift		 Comments
1 Reinvestment N/A N/A
2 New supplydelivered N/A N/A
3 Gearing -% -% No outstanding loan
fnance
4 Earnings before interest, tax,
depreciation major repairs /
interestcover		 -% -% No outstanding loan
fnance
5 Headline social housing cost per
unit		 £8,957 £8,794 £163 Includes costs of fat
refurbishment £20,920,
one-of legal fees
£24,436 and loss on
disposal of lift £17,662
6 Operating margin (4.63)
%		 (9.82)
%		 5.19% See above
7 Return on capital employed (1.07)
%		 (2.13)
%		 1.06% See above

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

Donations

During the year the Trust made no charitable donations.

Trustees’ responsibilities

3

MERSEA ISLAND TRUST

ANNUAL REPORT OF THE TRUSTEES - continued FOR THE YEAR ENDED 31 MARCH 2024

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:

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 2022. 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:

J Jackson

Chairman on behalf of the trustees 16 September 2024

4

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

FOR THE YEAR ENDED 31 MARCH 2024

Opinion

We have audited the financial statements of Mersea Island Trust for the year ended 31 March 2024 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:

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.

5

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

FOR THE YEAR ENDED 31 MARCH 2024

We have nothing to report in this regard.

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:

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:

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:

6

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

FOR THE YEAR ENDED 31 MARCH 2024

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

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

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: ·

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.

Streets Audit LLP Statutory Auditor The Old Exchange 64 West Stockwell Street Colchester Essex CO1 1HE

STREETS AUDIT Chartered Accountants & Registered Auditors DATE

7

MERSEA ISLAND TRUST

STATEMENT OF COMPREHENSIVE INCOME (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2024

Note
Turnover
2
Operating costs
2
Gross surplus/(defcit)
Administrative expenditure
2
Other operating income
Operating surplus/(defcit)
2
Interest receivable and similar income
5
Interest payable and similar charges
5
Surplus/(defcit) on ordinary activities for the
year
4
Revaluation of tangible fxed assets
Total comprehensive income for the year		 2024
£
359,517
376,175
(16,658)
-
-
(16,658)
17,713
-
1,055
-
1,055		 2023
£
337,746
369,358
(31,612)
1,540
-
(33,152)
15,232
-
(17,920)
-
(17,920)

There are no recognised gains and losses other than the surplus/(deficit) 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 16 September 2024 and were signed on its behalf by:

J Jackson - Chairman

J Taylor - Trustee

8

MERSEA ISLAND TRUST

BALANCE SHEET AS AT 31 MARCH 2024

Note
Fixed assets
Housing properties at depreciated cost
Less:
Social housing grants
Low carbon buildings programme grant
Other fxed 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		 2024
2023
£
£
1,682,74
5
1,713,90
8
(441,387
)
(441,387
)
(64,846)
(64,846)
1,176,51
2
1,207,67
5
37,852
17,662
1,214,36
4
1,225,33
7
1,557
16,737
364,027
327,317
365,584
344,054
(22,840)
(13,339)
342,744
330,715
1,557,10
8
1,556,05
2
-
-
1,557,10
8
1,556,05
2
1,516,65
4
1,516,15
1
40,454
39,901
1,557,10
8
1,556,05
2

The financial statements were approved and authorised for issue by the Committee on 16 September 2024 and were signed on its behalf by:

J Jackson Chairman

9

MERSEA ISLAND TRUST

BALANCE SHEET AS AT 31 MARCH 2024

J Taylor Trustee

The notes on pages 11 to 18 form part of these accounts.

10

MERSEA ISLAND TRUST

STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024

Note
Cash fow from operating activities
14
Net cash fow from operating activities
Cash fow from investing activities
Payments to acquire tangible fxed assets
Interest received
Net cash fow from investing activities
Cash fow from fnancing activities
Repayment of long term loans
Interest paid
Net cash fow from fnancing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2024		 Note
Cash fow from operating activities
14
Net cash fow from operating activities
Cash fow from investing activities
Payments to acquire tangible fxed assets
Interest received
Net cash fow from investing activities
Cash fow from fnancing activities
Repayment of long term loans
Interest paid
Net cash fow from fnancing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2024		 2024
2023
£
£
75,086
4,851
75,086
4,851
(44,372
)
-
5,996
574
(38,376
)
574
-
-
-
-
-
-
36,710
5,425
327,317
321,892
364,027
327,317
364,0
27
327,317
364,0
27
327,317

11

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024

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 office and 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 2022. 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) 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 10% per annum straight line.

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

11

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

(c) 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.

(d) 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.

(e) 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.

(f) 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.

(g) 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.

(h) Employee benefits

13

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

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.

14

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

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 (defcit)/surplus on social housing
lettings		 2024
2023
£
£
144,684
189,441
219,264
164,735
363,948
354,176
(4,431)
(16,430)
359,517
337,746
89,984
65,157
144,629
138,159
103,881
129,237
37,680
36,805
376,175
369,358
-
1,540
376,175
370,898
(16,658)
(33,152)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 20
6 INCOME AND EXPENDITURE FROM SOCIAL HOUSING

The dismissal of a former employee resulted in the Trust being taken to an Industrial Tribunal. The Tribunal, held on 7th March 2024, dismissed the former employee’s case but the resultant legal fees for the Trust were considerable at £24,436 and are included

15

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

in management costs in administrative expenditure. Although the Trust could have pursued a Costs Order from the former employee, it took the decision not to do this because of the poor prospects of recovering any costs from the individual

3 Accommodation owned and in management

Completed units: Housing for older people
Number of units at 1 April 2023
Changes in year
Number of units at 31 March 2024
In addition there is a warden’s fat 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 fxed assets
5
Interest and other fnance 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		 Akhur
st
Court
21
-		 Merse
a
Court
20
-
20
2024
£
6,480
1,740
37,680		 Total
41
-
41
2023
£
6,456
1,782
36,805
2023
£
574
14,658
15,232
2023
£
-
-
21
2024
£
5,996
11,757
17,713
2024
£
-
-

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 5 (2023: 6). They were all employed as wardens, deputy wardens, cleaners or co-ordinators.

16

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

The aggregate remuneration of such employees was as follows:

Wages and salaries 2024
2023
£
£
106,152
102,874
106,1
52
102,874

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 2023
Additions
Disposals
At 31 March 2024
Grants from the Housing Corporation
At 1 April 2023 and 31 March 2024
Grants from Low Carbon Buildings
Programme
At 1 April 2023 and 31 March 2024
Depreciation:
At 1 April 2023
Charge for year
Depreciation on disposals
At 31 March 2024		 Housing
propertie
s
for
letting -
freeholds
Furniture
fttings
and
equipme
nt
Total
£
£
£
2,190,652 24,446
2,215,098
2,580
41,792
44,372
-
(24,446)
(24,446)
2,193,232 41,792
2,235,024
441,387
-
441,387
64,846
-
64,846
476,747
6,784
483,531
33,740
3,940
37,680
-
(6,784)
(6,784)
510,487
3,940
514,427

17

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

Net book value:
At 31 March 2024
At 31 March 2023		 1,176,512 37,852
1,214,364
1,207,672 17,662
1,225,334

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 £103,881 (2023: £129,237) 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 £4,831,302 for Akhurst Court and £3,329,133 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		 2024
2023
£
£
(513)
207
2,070
16,530
1,557
16,737

11 Creditors: amounts falling due within one year

Trade creditors
Rents paid in advance
Other creditors
Accruals and deferred income		 2024
2023
£
£
10,106
638
-
-
5,642
5,609
7,092
7,092
22,840
13,339

18

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

12 Reserves

Reserves
Provisional
Aftercare
&
Communit Income
y and
Contingen Expenditur
cy Fund e Account Total
£ £ £
At 31 March 2023 39,901 1,516,151 1,556,0
52
(Defcit)/Surplus for the year - 1,055 1,055
Transfers 553 (553) -
At 31 March 2024 40,454 1,516,654 1,557,1
08
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:-

19

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

Interest received 2024
£
553
553		 2023
£
100
1
00

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

(Defcit)/surplus for the year
Interest payable
Interest received
Depreciation and impairment of tangible fxed assets
(Increase) in trade and other debtors
Increase/(decrease) in trade and other creditors
Loss on disposal of tangible fxed assets
Net cash fow from operating activities		 2024
2023
£
£
1,055
(17,920)
-
-
(5,996)
(574)
37,680
36,805
15,180
(13,776)
9,505
316
17,662
-
75,086
4,851

15 Pensions

The trust operates a workplace pension scheme for employees. During the year the cost to the trust was £1,435 and at the balance sheet date an amount of £399 was due to the scheme provider.

16 Related party transactions

There were no related party transactions during the year.

20

MERSEA ISLAND TRUST

NOTES TO THE FINANCIAL STATEMENTS – (continued) YEAR ENDED 31 MARCH 2024

21

MERSEA ISLAND TRUST

PROPERTY REVENUE ACCOUNT YEAR ENDED 31 MARCH 2024

2024
Akhurst
Court
Mersea
Court
Total
£
£
£
Income
Rents
76,992
67,692 144,684
Service
Charges
119,664
99,600 219,264
196,656
167,292 363,948
Less:
Losses arising from vacant
accommodation
(2,346)
(2,085) (4,431)
Net income
194,310
165,207 359,517
Expenditure
Service costs
- wardens salaries
30,849
24,977
55,826
- wardens
accommodation
-
-
-
- wardens council tax
827
341
1,168
- helpline monitoring
7,665
6,968
14,633
- rates
-
-
-
- water charges
4,250
3,611
7,861
- cleaning
6,051
2,499
8,550
- garden maintenance
6,021
3,314
9,335
- gas
10,420
5,509
15,929
- electricity
4,958
4,229
9,187
- depreciation of housing
properties
19,650
14,090
33,740
- depreciation of
furniture,
fttings and equipment
2,190
1,750 3,9
40
- telephone
2,676
1,024
3,700
- insurance
3,646
3,646
7,292
- Insurance claims
(6,514)
-
(6,514)
-loss on disposal
17,662
-
17,6
62
110,351
71,578 182,309
Management
- Administrators salaries
24,535
24,535
49,070
- postage and stationery
1,573
873
2,446
- sundries
1,424
1,188
2,612
- legal and professional
19,708
16,149
35,857
- website and computer
costs
-
-
-
- bad debts
-
-
-
47,240
42,745
89,985
Routine maintenance
58,387
45,494 103,881
Total expenses before fnance costs
215,978
160,196 376,174
Surplus/(defcit) on properties
before fnance costs
(21,668)
5,010 (16,658)		 2023
Total
£
189,44
1
164,73
5
354,17
6
(16,430
)
337,74
6
49,773
9,000
1,562
14,633
-
7,995
8,004
9,045
17,250
10,829
33,688
3,117
3,314
6,754
-
-
174,96
4
46,726
1,709
6,136
10,586
-
-
65,157
129,23
7
369,35
8
(31,612
)
Akhurst
Court
£
102,58
0
92,200
194,78
0
(11,030
)
183,75
0
25,211
9,000
1,562
7,665
-
4,963
5,524
6,457
11,127
6,583
19,598
3,117
2,547
3,381
-
-
106,73
5
23,363
1,077
3,563
6,073
-
-
34,076
85,764
226,57
5
(42,825
)		 Mersea
Court
£
86,861
72,535
159,39
6
(5,400)
153,99
6
24,562
-
-
6,968
-
3,032
2,480
2,588
6,123
4,246
14,090
-
767
3,373
-
-
68,229
23,363
632
2,573
4,513
-
-
31,081
43,473
142,78
3
11,213

22

MERSEA ISLAND TRUST

PROPERTY REVENUE ACCOUNT YEAR ENDED 31 MARCH 2024

Finance costs
Surplus/(defcit) on properties after
fnance costs		 -
-
-

(21,668)
5,010 (16,658)		 -
(42,825
)		 -
11,213		 -
(31,612
)

23