Charity Number.. 206515 THE TH0s WATSON corrAGE HOMES REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2024 CONTENTS: Page 1 Trust Information Report ofthe Truste8s Auditors. report Statement of financial activities 10 Balan sheet 11 19 Notes to the financial statements 6-8
THE THOMAS WATSON COThAGE HOMES 6A The Hall Leecroft Road Barnet Herts EN5 2TJ REFERENCE AND ADMINISTRATIVE INFORMATION CHARITY NUMBER: 206515 TRUSTEES: Mrs J S Harrold (Chairman) Mrs S H Housden MrRWPeart Mrs V E Corrlgan MrDLKay Mrs C L Corbett Mrs S K Mallon MrA K Edrupt Mr S C de Galleani CLERK TO THE TRUSTEES.. Mrs J I Scott (appointed February 2024) Mr J Alford (retired January 20241 FINANCE MANAGER: Mrs M P Dye (resigned 3161 October 2024) Mrs K Kendall (appointed 16th July 20241 SHELTERED HOUSING MANAGER Mrs S E Baker SOLICITORS.. Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY AUDITORS: Keelings Limited Broad House 1 The Broadway Old Hatfield Hertfordshire AL9 5BG BANKERS: CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
THE THOMAS WATSON COThAGE HOMES REPORT OF THE TRUSTEES The Trustees present th&ir report and the audited financial statements for Ihe year ended 319t December 2024. These have been prepared in aGG0rdan with the Statement of Recom- mended Practice Issued applicable to Charities preparing their accounts in accordan with the Statement of Recommended Practice.. Ac¢ounling and Reporting by Charities preparing their accounts in accordance with th6 Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) issued on 16 July 2014 and Financial Reporting Standard ap- plicable in the UK and Republic of Ireland {FRS 102) and Charities Act 2011 and the Charity's goveming documen1$. TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Annual Report and the financi81 statements in aC¢Ordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practi). The law applicable to Charities In England & Wales requires the Trustees to prepare financial Statements for each financlal year which give a true and fair view of the state of affalrs of the Charity and of the incomlng resources and application of resources of th6 Charity for that period. In preparing these financial slatements, the Trustees are required to: select suitable accounting policies and then apply them consistently., observe the methods anij principles In the Charities SORP., make judgments and estimates that are reasonable and prudent., state whelher applicable accounting standards have been followed, subject to any mate- rial departures disclosed and explained in the financial statements., and prepare the financial statements on the going concern basis unless it is irtappropriate to presume that Ihe Charity will ¢onlinue in business. The Truslees are responslble for keeplng proper accounting records that disclose with re8- sonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularlties. STRUCTURE, GOVERNANCE AND MANAGEMENT Constltutlon The Charity was established on 25 November 1913 and in 1980 ¢ombined with the Charity of Annie Lucy Watson, established by Will on 2 March 1937. The Charity is regulated by a scheme of the Charity Commissioners of 15 August 1980, as affeed by the Scheme of th8 Commissioners of 26 October 1987 (Aulhority to Sell land), and as varied by Ihe provisions of the Schemes dated 24th June 1991 (to establish a Cyclical Maintenance Fund and extend qualification to SPOUS6s), 10th June 1992 (authority for exp&ndilure of £145,000 on refurbish- ment of Cottages, subject to direction to recoup over 15 year$}, 251h January 1996 (authority for expenditure of £600.000 towards construction of at least 10 flat8 subject to direction to recoup over 60 years) and supplemental order, dated 81h Seplember1996 (authority to expend a further £50,000 on construction of a further flat), and 18 February 2010 (authority for ex- penditure of not more than £1,300,000 towards construction of further eight housing units sub-
ject to direction to recoup over 60 y88rs). THE THOMAS WATSON COThAGE HOMES REPORT OF THE TRUSTEES - continued Trustee8 The Trustees appointed to the Thomas Watson Cottage Homes show a balance of skills in order to run this Charity effectively. At the year end, there are four Trustees who are directly related to the Founders, I0 others who are former employees of NFC and on6 who is a local residenl. Their expèrtise Covers Pmperty and Planning, Finance and Welfare. There are no outsidè parties who can appoint Trustèes for the Thomas Watson Cottage Homes. Each Trustee Is appointed for a tenn of five years by a resolution of the existing Trusiees and may be reappolnted at the end of such term. All new Truslees are givèn a copy of the Residents. Handbook, full details on the runnlng of the Charily and guidelines from the Charity Commission for this scheme. Any other opportu- nities for training are also considered. structure of Organisation The Trustees met four times during Ihe year in person and via zoom as and when required. To VIeW the finances of the Charity. To consider on-going requirements for the maintenance and upkeep of the indivldual housing unlls and for the estate in general. To determine action required in relation to future developments on the estate. To receive reports from the Clerk on Ihe health and well-being of residents and olher matters relating to the running of the ChaTtty, including Housing Benefit. There wero SuroMmittee meetings during the year as required. The day-to-day administralive activitles were carried out by the Clerk to the Tiusteès, wlth assistance from the Sheltered Housing Manager and the Finance Manager. Statement of Risk Management The Trustees have considered the risks to whl¢h The Thomas Watson Cottage Homes are exposed. Thesè risks ar& miligaled by: A Board of Trustees with the necessary experience and competence to ensure the 8UC- cessful running of the Charity; Regular Trustees, meetings with effective reporting lo ensure propar rèview of operations., Maintenance of a sufficient reserve lo implement an effective relocation programme in th8 event of a disaster affeIng Ihe habitability of the accommodation: other financial risks have been addressed by insurance.
THE THOMAS WATSON COAGE HOMES REPORT OF THE TRUSTEES - continued CHARITY OBJECTIVES AND ACTIVITIES The Oblective Is to run Almshouses for the benefft of th& followlng persons. They shall be aged or poor persons of the following classes and their spouses or widows In the following order of priority.. Formèr employees of Sutton and Company. Sutton and Company Llmited and Sutton and Company (Manchester) Limited., Employees or former employees of any successor company of the said companies or any company of NFC plc: Employees or fomier employees of any person, firm, company or undertaklng engaged in the business of carrylng freight. Employees or former employees of any other carrier of freight. Provlded that when selecllng resldenls in 811 the above classes preference shall be given to such persons who have been employed as above mentioned for the longest period. NFC plc changed ils name to EXEL pl¢ and then merged with Ocean Group plc. This group now forms part of DHL which in turn is owned by Deulsche Post AG. The Charity Commission advise that thls does not require a change in the Scheme of the Charity. Subject to the expenses of Management, transfers to a Cyclical maintenan Fund and an Extraordinary Repair Fund, the Trustees shall apply the income of the Charity for the benefit of the residents in the Almshouses of the Charity or any of them in such manner as the Tru8- tees think fit from time to lime. The Trustees confim7 that the Charity Commission's general guidan on public benefit has been considered in relation to the objectives of th8 Charity. The report Sets out those objec- tlve5 and describes how they have been met in the current year. The only volunteers are the Trustees. The Charity does not engage in fundraising activities. ACHIEVEMENTS AND PERFORMANCE In 2024 we had 91% occupancy, which is down from 98% in 2023. This is mainly due to a significant refurbishment project for one Cottage, which saw this Cottage being unoccupied for the most part of the year. The next steps with regards to the future of said Cottage are currently being discussed by the Tnjstees. One flat in Colgale Court continues to be used as a guest flat and for other facilities for the benefit of the residents. The Clerk to the TTUStees, Mr Jeremy Alford, retired after 15 years of valuable se1. Mrs Jo Scott joined the staff in February and was fomially accepted after her probationary period. All the Staff have provided excellent care and SUPFK>rt to our Residents and assistance to the Trustees. The significant conslruction work required to Secure and stabilise the embankment to the rear of 15-17 Jubilee Cottages took place during the year and was finalised towards the end of 2024.
THE TrIOMAS WATSON corrAGE HOMES REPORT OF THE TRUSTEES continued FINANCIAL REVIEW The Trustees have consldered reserves required as part of their assessment of risk and also taken into account the annual requiremenl to transfer recoupment funds to the Endowment Fund. This year the amount transferred was £10,832 for Colgate Court and £21,664 for the new Cottages. It Is the Truslees, policy to maintain a ba18nce on genèral reserves which equate5 to at least 6 months g6neral expenditure. Tha balance at the year end was £204,621 which exceeds thls target, but is considerèd prudent by the Trustees. Having assessed the Charity's financial circumstances the Trustees have a reasonable ex- pectation that the Charity has adequate resources to Gontinue118 operations for the foreseea- ble future. The principal fvnding source is Weekly Maintenance Contributions from the Cottages and Flals. The average Contribution per unit of occupled accommodation was £9,318 per annum. Resi- dents of 8 unit5 received Housing Bènefit during the year. Weekly Maintenance Contributions were increased from April 2024 by approximately 5%. The Charity does not rely on voluntary work nor does it receive any gifts in kind. Th6 Finance sub-committee recommends the investment policy, which 1$ ratified atthe full quarterlyTrustee meetings. The balan of Recoupment fund8 continue to be held in Deposil Accounts and investments. The equity market has fluctuated during the year and the investments held throughout Ihe year in¢reased in value by a net total of £43,139, with unrealised gains of £40.776 and realised gain8 of £2,363. The investment policy of the Chafity Is to mitigate its risk by having a spread of Investment funds, with review by the Trustees on a quarterly basis. The Charity's policy on resèrves is determined by the various Charity Commission Orders on an ongoing concern basis. The Charity aims to bak even from its operations on the General Fund year on year. PLANS FOR THE FUTURE Future quinquennial inspections will take place on a rotation basis be+een the Original Col- tages, Colgate Court and Jubilee Cottages. A decision by the Truslees with regard to the future of one of the larger Original Cottage$ is currenlly being made. This will include the option of a general refurbishment, or alternalively splitling the existing Cottage into two. smaller, new dwellings. Thomas Watson Cottage Homes Leecroft Road Bamet Herts EN5 2TJ CHAIR AN
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE THOMAS WATSON COThAGE HOMES Opinion We have audited the financial slalements of The Thomas Watson Cottage Homes (the 'Charily'l for the year ended 31st December 2024 which Comprise the Statement of Financial Activities, the Balance Sheet and notes lo th8 financial statements, including a summary of significant accounting policies. The financial reporting framewod( that has been applied in their preparation is appllcable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ir6land'. In our opinion the financial statements: give a true and fair view of tha slate of the Charity's affairs as al 31st December 2024 and of ils incoming resourGes and application of resources for the year then ended; have been properly prepared In accordance with United Kingdom G8nerally Accepted Accounting Practice, including Financial Reporting Standard 102 'The FinanGial Re- porting Standard applicable in the UK and the Republic of Ireland,: and have been prepared in accordancè with the requiremenls of the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with Intemalional Standards on Audillng (UK) (ISAS (UK)) and appli¢able law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of Ihe Charity In accordance with the ethical requirements thal 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 qUirements. We believe that the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Conclusions relatlng to golng concèrn In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of thè financial statements is appropriate. Based on the work we have perfomed, we have not identified any material uncertainties re- laling to events or condltions that, individually or collectively. may ¢ast significanl doubl on the Charity's ability lo continue as a going concém 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 lo going conrn are described in the relevant sections of this report. Other Infomiatlon The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other th8n the financial statements and our Report of the IndependentAuditors Ih8reon. Our opinion on the financial statements does not cover the other information and, except lo the extent olherwise explicttly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the finan¢ial slalements, our responsibility is to read the other information and. in doing so, consider whether the other information 19 malerially inconsistenl
with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we Identify such material inconsistencies or apparent material misstatemer)Is, we are required to determine whether there is a material misslalement In the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude Ihat there is a material misstatement of this other infor- mation, we are required to report that fact. We have nothing to report In this regard. Matters on whlch we are required to report by oxceptlon We have nothing to report in respect of the following matters where the Charities Act 2011 requires US lo report to you if. in our opinion: Ihe information given in the Report of the Trustees is inconsistent in any matérial respect with the financial stalemenls; or sufficient accounting records have not been kept., or the financlal statements are not In agreement with the accounting records and re- tums. or W8 have not received all the infomalion and explanations we require for our audit. Responslbllltles of Trustses As explained more fully in the Statement of Trustees Responsibilitie8, the Trustees are re- sponsible for the preparation of the financlal statements which give a true and fair view, and for such internal control as the Trustees detemine is necessary lo enable the preparation of financial statements that are free from material misstat6ment, whether due to fraud or error. In preparing the financial statements, thè Trustees are responsible for assessing the Charity's ability to continue as a going concern. disclosing, as applicable, matters related to going con- cem and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Our responslbllltles for the audlt of the finanelal statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevanl regulations made or having effect thèréunder. Our objectlves are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue a Report of Ihe Independent Auditors that includes our opinion. Reasonable assurance is a hlgh level of assurance, but is not a guarantee that an audrt 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 rea- sonably be expected to influence the economic decisions of u8ers taken on thè basis of Ihese financial statement8. Irregularities, Including fraud, are instances of non-compliance with laws and regulalions. We design procedures in line with our responsibilities, Qutlined above, to detect material misstate- ments in respect of irregularities, including fraud. The extent to which our proGedures are ca- pable of detecting irregularities, including fraud is detailed below.. We gained an underslanding of the legal and regulatory framework applicable to the Entity and the industry in which it operates and considered the risk of aS by Management and whi¢h were contrary to applicable laws and regulations. Induding fraud. Thesè included, but were not limited to, compliance with Financial Reporting Framework FRS 102, Charities Act 2011, General Data Protection Regulations, and applicable Health and Safety and Em- ploymenl Legislation. We made enquiries of the Trustees of the Charity to obtain further un- derstanding of the risks of non4ompliance. We focused on laws and regulations thal could
give rise to a material misstatement in the financial statements. Our tests included, but were not limited to.. agreement of the financial statement disclosures lo underlying supporting dooumenta- tion., enquiries of Management regarding known or suspeded instances of non-oompliance with laws and regulations., review of minutes of the Board meetings throughout the year,. obtaining an understanding of the control environment in place to prevent and detect Irregularities. Our audil procedures were designed to respond to risks of material misstatement in the finan- cial statements. recognising that the risk of not detecting a materlal mlsstatement due to fraud is higher than the risk of not delecling one resulting from error. Because of the inherent limit2- lions of an audit. theré is a r¢sk that we will not detect all irfegularilies, 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 fiom the events and transactions reflected in the financial Statements, as we wlll be léss likely to become aware of instan$ of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional ¢once8lment, forgery, collusion, omis- sion or misrepresentation. A further descrlption of our responsibillties for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditor8responsibilities. This desoription forms part of our Report of the Independent Auditors. Use of our report This report is made solely to ihe Charity's Trustees, as a body, in accordance with Section 144 of the Charilies Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors, report and for no olher purpose. To the fullest extent permitted by law. we do not accept or assume responsibilily to anyone other than the Charity and the Charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Keelings Limited Statutory Auditors. Chartered Tax Advisers and Chartered Certified Accountants Broad House 1 The Broadway Old Haffield Hertfordshir8 AL9 5BG
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THE THOMAS WATSON COAGE HOMES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 ST DECEMBER 2024 1. ACCOUNTING POLICIES Basis of Pre Talion of Financial Statemen The financial slalements have been prepared under the historical cost convention with items recognised al cost or Ifansaclion value unless olhetwise stsled in the relevant notes lo these accounts. The financial slalemenls have been prepared In accordan with the Statement of Recommended Practice.. Accounllng and Reporting by Charities preparing their accounts in accordance with the FinancSal Reporting Standard appllcable in the UK and Republic ol Ireland IFRS 102) issued on 16 July 2014 and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102) and Charitles Act 2011. The financial statements have been prePad to glve a Yiue and fairf view and have Iherefore departed from the Charities IAccounls and Reports) Regulations 2008. This departure has inVoed following the Charities SORP IFRS 102) as stated above, rather than the Aecounting and Reporting by Charities Slalemenl of Recomended Pracllce effethe from 1st April 2005 which has since been withdrawn. The Thomas Watson Cottages Homes Con51[leS a public benefit enlty as deflned by FRS 102. The reporting cuirency Is GBP and all amounts have been rounded lo the nearest £. d Attountin General funds are un$1cted funds whkh afe available for Ltse al the discretion of the Trustees in furthei£nGe of the general obieollves of the ChoTity and which have not been designated for other purposes. Restricted fvnd5 are funds whtch are lo be used In accordance with specific restrictions imposed by donors or which have been allocated by the Charlty for particular purposes. The costs of raislng and administering such funds are charged against the specific fvnd. The alm and use of each restficted fund is sel out In the notes lo th6 financial statements. Oesignaled funds are represented by the CyclKal Maintenance Fund and the Exlraoidlnary Repair Fund whlch were sel up lo be used agalnsl th& regular upkeep and maintenance of the properties. The End¢)wment Fund represents the endowment made by the daughters of Thomas Walson for the primary purpose of the Charity. Investment income, gains and losses are allocated to the appropriate fund. Reval lion of Fixed vestmen In accordance with the SORP, Investments of the Chaftty have been revalued at the balanc6 sheet dale. The value shown in the 8¢counts is the mld-market price. Land held by the Charity with no prospect of development or sale has not been revalued. Incomin res urces All incoming resources are included Sn the Statement of Flnancial Aclivllies when the Charlty Is allY enlilled lo the income. Resources Ex ended ReSoUrS expended a accounted lor on an accruals basis. It is the policy of the Trustees not lo capi181ise new offKe equiwnent costtng less than £5,000. Al resources expended are inclusive of iriecoverabFe VAT, which is charged against the expense trj which il relates. 11
THE THOMAS WATSON COThAGE HOMES NOTES TO THE FINANCIAL STATEMENTS - continued 1. ACCOUNTING POLICIES {contlnued) Resoufces Ex ended continued During the year. the Charèty generated a Sufplvs of £199,286 after revaluation of inveslments12023'. £118.6641. which translates to a SL¢rplus of £156,22712023= deficit of £61,867) before revaluation of investments. The Trustees consider The Thomas Watson Cott8ge Homes 8 going concern for the fOseeable future, this being at leas112 months from the date the balance sheet was slgned. This is due lo the con5h*r8ble endowment held by the Charity, whlch genefates income. The weekly maintenance conlrlbutions paid by the residenls represent ca. 90Qh of market rent, and it can be expected that a slmilar level of income can b8 achieved In that regard in the nexl year. The Trustees btsdgel for 5% of the Properties being vacant during the year, which would not cause the Charity any financial hardship. Additionally, the Ch8rfty holds a large Investment portfollo which generatss ¢8. 20% of ils Incomg after adlusting for &xceptional income In 2024. It is split betsveen equlty and treasury stock to reduce Tisk while still being able to generate good retums. Unexpected expenses are unlikely to occur as quinquennial works are cafried out on thè cottages to ensure that they are In good stsles of repair, and any issues can be addressed immediately or can be budgeted for. Cash F The financial statements do not Include a cash flow statement because the Charity. as a small reporting entity, 1$ exempt ftom the requirements to prepare such a slatement under the Charilles SORP IFRS 1021. Cash Is represented by cash In hand and depDSits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquifj investments that mature In no more than three months from the date ol acquisition and that are readily convertible lo known amounts of cash wlth In8lgn¢ficant rfsk of change In value. The cost of Colgate Court and Jubilee Cottages is amortlsed at rates c81culated to be in accordance wlth th& recoupment rate set down by the Charty Commlssion as set out below.. Colgate Court Jubilee Cottages - over 60 years - over 60 years The Trustees consider the lime period for the amortisalion appropriate in view of the directions of the Charlty Commission irs th¢ Schemes dated 25th January 1996 and 16th February 2010. eresl Receiv8ble Interest on funds held on deposit 1$ included when reivable and the amount Can be measured reliably by the Charity; this 18 normally upon noiificatlon of the interest pald or payable by the bank. Debtors Trade and other debtors are recognlsed al the settlement 8mounl after any trade dlscount offered. Prepayments are valued at the amount prepatd net of any trade discounts due. 12-
THE THOMAS WATSON COThAGE HOMES NOTES TO THE FINANCIAL STATEMENTS contlnued 1. ACCOUNTING POLICIES Iconlinuedl Lia es and rovlsion Liabllilies are recognssed when there is an obligation at the Balance sheet date as a result of a past event. il Is probable that a transfer of economic benefit wlll be required in settlement. and the amount of the settl8menl can be estimated reliabsy. Liabilities are recognised al the amounl that the Charity anli¢lpates il will pay to settle Ihe debt or the amount il has received as advanced payments for the g¢)ods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provlsion is based on the present value of those amounts, discounted at the pre-tax discount rale that reflects the risks spe¢ifl¢ to the liabllity. The unwinding of the discount is reGognised within interest payable and similar charges. Flnancial Instruments With the exception of fixed asset investments. thè Chadty On has ffnanc1818ssets and finoncial liabilities of a kind that quallfy as basic financlal Inslrumenls. Basic financial Instruments are Initially recognised at transaction value and SLsbsequentty measured at their settlement value. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION In the application of the Charitys accounting policies. the Trustees may be required to make judgements, estimates and assumptions about the carrying arnounl of assets and IlabS1ilies that are not readily apparent from other sources. The estirrFatss and assoclated assumptions are based on hlslorical experlence and other factors that are consKlored to be relevant. Actual results may differ from these estimates. The estimates and underlying as$umpt¢on are revlewed on an ongoing basis. Revisions lo accounllng estimates are recognised in the perlod in whiGh the estimate Is revlsed If the revision affeols only that period, or in a period of the revision and future periods if the revision offecls koth current and flrture periods. At the year gnd dale the Trustees had idenlified the following relevant estimates forwhich assumptions might be needed in the financial ststements.. Amortlsatlon (Rocoupmentl The cost of Colgate Court and Jubilee Cottages Is amortised at rates calculated to be In accordance with the recoupment rate Set down by the Charity Commission (60 years). Dlvldends and Intorest Income Official informallon on interest and dlvidends receivable for the latter part of the yearlg usu81ty reiVed after the year end and after the aGcounts have been prepared, making it necessary to estimate the anticipated inleresv dividend income. Estimates are made based on experience and interest received for previous periods. 13-
THE THOMAS WATSON COThAGE HOMES NOTES TO THE FINANCIAL STATEMENTS 3 MAINTENANCE OF SITE AND PROPERTIES 2024 2023 INCOME FUND Maintonance and general upkeep Maintenance salaries Landscaping. gardening and grounds Light and heat Rates and Insurance Planning Co8t8 & Other Prof fee$ 39,943 33.417 6,841 20.537 27.736 50.437 31,794 3,083 15,414 22,655 128,473 124.163 CYCLICAL MAINTENANCE FUND Quinquennlal Works & professlonal fees EXTRA-ORDINARY REPAIR FUND Exceptional repair works & Profess¢onal fees ENDOWMENT FUND Amort15ation of Colgate Court Amortisation of Jubilee Cottagos Remedial Costs for Jubile8 Cottages (see note 13) 14.646 107,085 80.813 10.832 21.664 279,994 312.490 10,832 21.664 60.498 92,994 TOTAL FUNDS 553 081 312.616 4 DIRECT WAGE COSTS & RESIDENTS, AMENITIES 2024 2023 Wages and natwjnal insuran Alarm sy8tem Residents Amenities & Welfare 39,762 2.012 6,821 48,596 37,817 3,954 7,112 48.883 5 OTHER RUNNING COSTS 2024 2023 Clerk's Salary Telephone. Postage and Slalionery National AssoGlalion of Almshouses Sundry expenses Office Equipment & Computer maintenance Recruitment & Trslnlng Audll Trustee5' expenses Flnancial SeiceS Professlonal fees 32.129 2.852 662 511 25,795 1,612 413 326 1,199 1,172 3.402 604 10.064 903 3,488 427 15.290 1.500 58,605 44,587 Total salary costs amounted to £105,30812023'. £95.4() induding £4.537 (2023.. £3,543) employe¢s national insurance contributions. Average stsff members in the year were 312023.. 31 No Trustee received or waived any remuneratlon In the year. Trustees expenses relate lo the attendance al meetings and assoclated c08ts IncuTred by all Trustees. Key management comprises the Trustees who glve their time frèely and do not receive any romuneralion. 14-
THE THOMAS WATSON COThAGE HOMES NOTES TO THE FINANCIAL STATEMENTS - continued 6 INVESTMENTS Market Inleresu Value Dividend Cost Endowment Fund 2.59A IndexLink TSY Stock 2024 4.125% IndexLink TSY Stock 2030 2% IndexLink TSY Stock 2035 C.O.l.F. Investment income shares- 58.915.50 BLK Charities UK Equlty Fund- A BLK Charitles UK Bond Fund- Class A In¢ M&G Charlty Mulli Asset Fund 2,237 8,005 2,029 42.393 13,285 1.575 172,025 392,284 149.890 128.352 750.004 1.559.196 185.10S 385.588 50.000 37.274 25.828 180.273 General fund: 156.85 COIF Accum. Shares12002.. Cost £3,000) TOTAL INVESTMENTS 3,000 40,878 1,335,853 2,723,825 69.526 SUMMARY OF MOVEMENTS IN YEAR Market value at 181 J8nuary 2024 Purchases in the year Sales in the year- proceeds Realised Gain Unrealised gairs 2.680.685 220.181 1220,1811 2.363 40,776 Market value al 3181 December 2024 2,723,825 All investment5 are UK investments 15-
THE THOMAS WATSON COAGE HOMES NOTES TO THE FINANCIAL STATEMENTS - continued 7 LAND AND BUILDINGS The Charty owns the freehold lo 6.3 acres of land al Chlpping Bamet together wilh 20 cottages and 11 flats, being 30 units of accommodation for reskjenls, and one residents. guest suite. The land together with the 12 original cottage homes was donated to the Charity by the Founders in 1913. This cost attributed lo the original cottages Is their 2008 valuation and the Trustees have adopted Ihls figure for the purposes ol FRS 102. 11 will not be subject to further revaluation and the depreciation charged reco9nises that they have been occupied for charitsble purposes for in ex¢os$ of 60 years, boing the period of amortisat(on adopted as explained below. On 25th January 1995, the Charity Commissioners aulhoTised the Trustees of the Charity to expend from its pem)at)enl endowment not more than £600,000 lin¢Teased to £650.000 on 8th September 1995) towards thè conslruolion of at least eleven flats. Construction commenced during 1995 and final payments were made dullng 1998 on conlra¢t value of £674,629. The cost in excess of the Charity Commlsslon aulhorisotion has been met from Interest earned on the £650,000 during the course of development. The Trustees are required to recoup the sums expended by transfer from income over 60 years. The depreciation method adopted reflects the recoupment p&rlod and has therefore been set to write off the cost of buildings over SO years. As 8 result, the original cottages are considered fvlly depreclaled and amortisalion provisions continue to be made for the flats and lubllee cottages. On ieth. February 2010, the Charity Commissioners authortged the Tfustees of the Chartty to expeNI from Its permanent endowment not more than £1,300,000, towards the Construdon of eight cottages. Work was completed durlng 2011 and the Trustees will be require(f to recoup the 8um expended by transfer from Inm8 over 60 years and this 1$ llected in the depreciation charge. The cost of other land represents the expenditure incurfed during 2008 In securing the land not considered avallable for sale. This 1$ consldered by the Trustees to be a reasonable estimate of the value of that land. Jubilee Other Cottages Cottaggs Land Total Flats COST OR VALUATION At 1st January 2024 Cost durfng the year At 31st Dtr¢•mb•r 2024 674,629 2,384,226 1.299,717 14,789 4,373,361 674.629 2,384,226 1,299,717 14,789 4,373,361 AMORTISATION Al 181 January 2024 Provision in year At 31st December 2024 295,201 2,384.226 10,832 306.033 2.384,226 270,772 21,864 292,436 2,9SO.199 32,496 2.982,695 NET BOOK VALUE At 31st December 2024 368,596 1,007,281 14,789 1,390,686 Al 31st December 2023 379.428 1,028.94S 14,7B9 1,423.162 16-
THE THOMAS WATSON COThAGE HOMES NOTES TO THE FINANCIAL STATEMENTS - continued 8 DEBTORS 2024 2023 Piepayments Accrued Income 7.606 21.792 29,399 9,172 25.129 34.301 g CASH AT BANK AND CASH EQUIVALENTS 2024 2023 Ca8h at bank Cash equivalents 193.808 402,294 596.101 110.542 256,702 367.244 10 CREDITORS 2024 2023 Amounts falling due within one Acruals Deferred Income Accounts Payable Other Tax & Sorial Security Sundry 49,071 13,770 1,217 2.307 54 14,285 14,517 2,284 66,419 31,086 17-
THE THOMAS WATSON COTTAGE HOMES NOTES TO THE FINANCIAL STATEMENTS Conllnued 11 EXTRAORDINARY REPAIR FUND YEAR ENDED 31ST DECEMBER 2024 Fund at 1st January 2024 Transfer in the year WilhdrawnlRecouped during the year Fund at 31st December 2024 2024 2023 61,302 30,225 {7,5041 84,023 82,115 60,000 180,813} 61,302 REPRESENTED BY.. V8f#)us cash deposits 84.023 61.302 Inoluded In the net movement of £7.504 is'other In¢ome" of £99.581 whiGh represents insurance refunds In connection with the refurblshment of one of the cottages. 12 CYCLICAL MAINTENANCE FUND YEAR ENDED 31ST DECEMBER 2024 Fund as 8t 1st January 2024 Transfer in the year Expenditure in the year Fund at 31st Decemb8r 2024 2024 2023 69,506 40.033 15,0331 104.508 69,152 15,000 {14.6461 69,506 REPRESENTED BY: Creditors V8rious ¢ash derx>sIts 15.0331 109.539 104.506 69,5( 69,506 A specific fttnd was established in 2001 and is shown Separate In accordance with SORP 2015. It is the intentn of the Trustees to maintain the fund by regular transfers from the general fund. 2024 13 ENDOWMENT FUND YEAR ENDED 31ST DECEMBER 2024 Fund as at 1st January 2024 Transfer in the year RecoupmenVDepreciallon Expenditure in the year Income in the year GainslLosses on Investment Assets Fund at 31st December 2024 2023 4,159,640 32,496 132.496) 1279,9941 360.000 40.776 4,280.422 4,043,938 32.496 {32,4961 180,4981 176,200 4.159,640 REPRESENTED BY.. Land and Buildings Investments Credllors Cash deposlls 1.423,162 2,682,947 {34.9411 209,254 4 280,422 1,423,162 2.641,786 94.692 4,159 640 18-
THE THOMAS WATSON coAGE HOMES NOTES TO THE FINANCIAL STATEMENTS onlinued 13 ENDOWMENT FUND YEAR ENDED 31ST DECEMBER 2024 Iconlinuedl The Chartty Commi8slon has approved the use of Endowment Fund5 to monitor. investigate, effect abnom)al andlor emerggnGy repalrs lo drains and pallos. carry out abnormal remedial works including design and supervision and inour independent expert and associated legal costs relating lo the movement and subsld6ncg In the embankment to the roar of Nos 15-17 Jubilee Cottages. Three applicat¢ons We approved by the Charity Commlssion for this pu¥pose- In October 2019. August 2022 and December 2023-10 the value of £490,000. The accounts include £279,994 of suth costs durlng the year12023 £60,498.) So far, £478,110 has been spent on repairs attrlbutable lo the Endowmenl Fund. In July 2024. the Charty received compensation of £360.000 for costs Ineurred in conneclion with the WOTk on the ernbankment The incoff Is Included In the SOFA under'olher Income.. 14 GENERAL FUND YEAR ENDED 31 ST DECEMBER 2024 Fund as al Isl January 2024 Nel IncomelExpendituie before tfansfers Transfers in the year GainsllLossesl on Investment Assets Fund al 31st December 2024 2024 2023 183.858 121,154 {102,754} 2,363 204.621 160.437 126,586 (107,496) 4.331 183,858 REPRESENTED BY.. Investments Net current Assets 40.878 163,743 204,621 38,899 144.959 183858 15 RESERVES As noted in the Risk Assessment section of the Trustees, Report. the princrpal purwsg of Ihg general reserve is to provide for relocation and care of r&sid8nls in the event of a majoT incident dgpriving the Trustees of the use of the resldential buildings. The Charity also requires funds to plan foT growih and this is sp8clfically assessed from time to lime. 16 FINANCIAL INSTRUMENTS Flnanclal Assets 2024 2023 Financial assets measured at fair value through the SOFA 2.723,825 2,680.685 Flnat)cial assets measured at falr value through the SOFA comprise investments 15 RELATED PARTIES Durlng the year ended 2024. there were no transactions wth reFated parties12023 none) 19-