DORKING CHARITY
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[st] DECEMBER 2020
Ellis Atkins
Chartered Accountants
DORKING CHARITY
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] DECEMBER 2020
| Pages | Contents |
|---|---|
| 1 | Reference and administrative information |
| 2 - 4 | Report of the Trustees |
| 5 | Independent Examiner’s Report |
| 6 | Statement of Comprehensive Income |
| 7 | Statement of Financial Position |
| 8 | Statement of Cash Flows |
| 9 - 15 | Notes to the Financial Statements |
DORKING CHARITY
REFERENCE AND ADMINISTRATIVE INFORMATION
REGISTRATION Charity Registration Number 207251 NUMBERS: Homes and Communities Agency Number A2255 TRUSTEES: Mr M R Knott - Chairman Mrs J Brown Mrs M Cooksey Mrs C Francis Mr M Heath – resigned 12[th] October 2020 Ms H Kennedy – resigned 13[th] January 2020 Mr D C Kingham Mrs C Lawrence Rev D Tighe Mr J Turnbull Mr T Loretto SECRETARY Mr T Haylett AND CLERK TO Rose Cottage THE TRUSTEES: 11, Cotmandene Dorking Surrey RH4 2BL INDEPENDENT Ellis Atkins EXAMINERS: Chartered Accountants 1 Paper Mews 330 High Street Dorking Surrey RH4 2TU BANKERS: National Westminster Bank plc 14 High Street Dorking Surrey RH4 1AX INVESTMENT Quilter Cheviot Asset Management Limited ADVISORS: One Kingsway London WC2B 6AN
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DORKING CHARITY
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31[st] DECEMBER 2020
The Trustees submit their annual report, together with the unaudited financial statements of the Charity, for the year ended 31[st] December 2020. The financial statements prepared comply with the recommendations in the Statement of Recommended Practice Accounting for Social Housing Providers 2018 and are in accordance with the Housing and Regeneration Act 2008, Accounting Direction for Private Providers of Social Housing 2019 and FRS 102.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity comprises eighteen smaller parochial charities which, under the governing document, ‘Scheme of Commissioners’ dated 4[th] December 1992, became known as the Dorking Charity. The eighteen charities and their property are administered and managed as one charity under the title Dorking Charity.
The charity’s governing document states that there should be eleven trustees, of whom one is an ex-officio trustee, four are nominated trustees and six are co-opted trustees.
New co-opted trustees are appointed for five years by a resolution of the trustees passed at a special meeting requiring at least 21 days’ notice.
Variances in the office of nominated trustees are notified to and filled by the proper appointing body. Three of the nominated trustees are appointed by Mole Valley District Council and one by Holmwood Parish Council.
The management of the charity is implemented by four sub-committees covering Finance, Residents, Building and Development, each of which consists of 3 or 4 trustees. Sub-committees report to quarterly meetings of the trustees and decisions are taken by majority vote.
OBJECTIVES AND ACTIVITIES
The principal objective of the charity is the provision and management of almshouse flats, which are used to house people in need in Dorking.
Public benefit statement
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.
Grant making policy
Under the terms of a Scheme of 4[th] December 1992 approved by the Charity Commissioners, the trustees can make grants to persons resident in the Ancient Parish of Dorking Area who are in condition of need, hardship or distress, either directly or via an institution.
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DORKING CHARITY
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31[st] DECEMBER 2020
ACHIEVEMENT AND PERFORMANCE
The trustees are satisfied with the results for the year.
The number of units under management at the beginning and end of the year was twenty.
FINANCIAL REVIEW
There was a surplus for the year of £100,242 compared with a surplus in the previous year of £67,797. This increase in surplus was achieved despite the reduced net gain on revaluation of fixed asset investments compared to the previous year due to the significantly reduced spend of £60,164 on property maintenance compared to the previous year.
Investment policy
During the year the trustees agreed that the investment portfolio should be managed on a discretionary basis by Quilter Cheviot Asset Management Limited. On Quilter Cheviot’s recommendation, the trustees agreed to sell all shares in the charity’s investment portfolio and reinvest the proceeds in the QC Global Income & Growth Fund.
In order to monitor progress, Quilter Cheviot Asset Management Limited provide three monthly capital performance reports. The reports include the movement on the FT All Share Index over the same period. A review meeting with Quilter Cheviot Asset Management Limited is held once each year.
The trustees will keep under review whether there is a need to revise the Investment Policy Statement and if so, will immediately advise Quilter Cheviot Asset Management Limited
Reserves policy
The Charity maintains a level of reserves such that it will be able to meet any foreseeable repairs or renewals of its assets. The level of reserves held is shown in the balance sheet as £1,410,988 but of this amount £1,279,828 consists of fixed assets, which included the investment portfolio.
Reserves surplus to current requirements are being built up to finance future improvements to the charity’s properties.
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| FORTHEYF]ARENDE | D31S1DI' | CENIBI'R2O2O | CENIBI'R2O2O |
|---|---|---|---|
| UnrestrictedFunds | |||
| 2v20 | 2*19 | ||
| Notes | cg | ||
| TT'RNOVER | 4 | 134,141 | 122,432 |
| OPERATING EXPENDITUNE | |||
| Services | 5 | (45,ffi3) | (46,9791. |
| Premisesmaintenance | (8.668) | (68,832) | |
| Administration | (665) | (643) | |
| Management | (18,472|(18,0t0) | ||
| Grants payable | (1,m0) | ||
| (73,468) | (115,4@) | ||
| Operatingsurplud(deficit) | 60,673 | (13,032) | |
| lnvestment incorne | 2 | 9,566 | 13,112 |
| Rental income | 3 | 2,591 | 2,591 |
| Revaluationofcurrentassetinvestments | t2 | 27,412 | 65,125 |
| Surplwonordinaryactivities | 7 | loo,vlz | 67,797 |
| beforc taxation | |||
| Taxationon surplus onordinary activities | |||
| SI,RPLUS FORTIIEYEAR | ___$ae_ | ____61J97* | |
| STATEMENTOF CHANGESINRESERVES | |||
| Balanceasatl$January2020 | r,310.746 | 1,242,949 | |
| Surplusforthe year | lw,242 | 67,797 | |
| Balanceasat 31$December 2020 | L2 | __l,4rqpg-q_ | -1lw46 |
| TIXEDASSETS | Notes | zWA f |
2At9 f |
||
|---|---|---|---|---|---|
| Completed housing properties cost | I | 902,938 | g02,g3g | ||
| LessHousing AssociationGrant | (125,395) | (125,395) | |||
| Otherfixedassets Invesnnents |
8I | 777#3 9,524 4g2,g6l |
777,M3 1o,725 425,&g |
||
| l,27g,g2g | 1,213,916 | ||||
| CURRENTASSETS | |||||
| Debtors Cash atbankandinhand |
l0 | lo,uz .l2g,M3 l39,l05 |
6,241 gg,l7g 105,420 |
||
| CREDITORS | |||||
| Amountsfallingduewithinoneyear | t1 | 7,945 | *8,490 | ||
| NET CURRENTASSETS | l3l,160 | 96,930 | |||
| TOTALASSETS LESSTOTAL LIABILITIES |
1,410,998 | r31a,746 | |||
| . | |||||
| IncomealrdExpenditureReserves | t2 | ,L4{0,988 | 1,310,76 |
DORKING CHARITY
STATEMENT OF CASH FLOWS
AS AT 31[ST] DECEMBER 2020
| Net cash generated from operating activities (see note below) Cash flow from investing activities Purchase of investments Proceeds from sale of investments Dividend & interest received Cash flow from financing activities Interest paid New secured loans Repayments of borrowings Net change in cash Cash at bank and in hand at the beginning of the year Cash at bank and in hand at the end of the year Note Cash flow from operating activities Surplus/(deficit) for the year Adjustments for non-cash items Depreciation of tangible fixed assets Decrease/(increase) in trade and other debtors Increase/(decrease) in trade and other creditors Rent |
Year ended 31st December 2020 61,026 (457,066) 416,358 9,566 - - - 29,884 99,179 129,063 Year ended 31st December 2020 60,673 (183) 1,201 (3,801) 545 2,591 61,026 |
Year ended 31st December 2019 (11,767) (33,298) 33,043 13,112 - - - |
|---|---|---|
| 1,090 98,089 |
||
| 99,179 | ||
| Year ended 31st December 2019 (13,032) - 1,200 (3,980) 1,454 2,591 |
||
| (11,767) |
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards in the United Kingdom and the Statement of Recommended Practice Accounting by Registered Social Housing Providers (updated 2018). A summary of the more important accounting policies is set out below:-
(a) Accounting basis
The financial statements are prepared under the historical cost convention as modified by the revaluation of certain assets. In preparing the financial statements, the Charity follows the Financial Reporting Standard 102 (FRS 102), the Housing Statement of Recommended Practice 2014, the Accounting Direction for Private Registered Providers of Social Housing 2015 and The Housing and Regeneration Act 2008.
(b) Tangible fixed assets and depreciation
Housing properties and improvements are included at cost less Housing Association Grant. No depreciation is charged on buildings as, in the opinion of the trustees, the properties are maintained in a high state of repair, and therefore the residual value is not believed to be less than cost, and their life is expected to exceed fifty years.
Other fixed assets are included at cost. Depreciation is charged so as to write off the cost, less estimated residual value, over the expected useful economic life of twenty years.
(c) Unrestricted funds
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for specific purpose.
(d) Investments and investment income
Investments are included in the financial statements at mid-market value at the balance sheet date. Income from investments is accounted for when receivable. All the investments are UK based.
(e) Realised gains and losses
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchased date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
(f) Turnover and rent
Turnover represents maintenance contributions from the tenants of the almshouse flats and is disclosed in the financial statements on an accruals basis less any losses arising from voids. The letting of noninvestment property at nominal cost is in furtherance of the Charity’s objects.
(g) Expenditure
Expenditure is included on an accruals basis and is all related directly to the objects of the charity except where shown.
(h) Taxation
The Dorking Charity is a registered charity and is, therefore, exempt from liability to taxation on its income and capital gains.
2. INVESTMENT INCOME
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Dividend income | 9,566 | 13,112 |
3. RENT
The charity was bequeathed the freehold of 23 acres of land at Gillingdrove, Chislet Marsh, Kent in the 19[th] century. Currently the land is rented out to a local farmer for grazing at £2,591 (2019: £2,591) per annum.
4. TURNOVER
| Maintenance contributions Grants |
2020 £ 132,141 2,000 134,141 |
2019 £ 120,432 2,000 |
|---|---|---|
| 122,432 |
At the beginning and end of the year, there were 21 flats under management.
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
5. SERVICES
| Secretary 50% fees Warden 50% salary Electricity Heating Telephones Maintenance Water rates Insurance Cleaning and gardening Sundry expenses |
2020 £ 6,269 7,422 3,101 14,515 1,370 174 4,968 2,442 3,566 1,836 45,663 |
2019 £ 5,390 7,950 2,232 13,404 1,038 2,379 5,256 2,350 3,354 3,626 |
|---|---|---|
| 46,979 |
6. STAFF COSTS
The only employee is the warden and the charge of £14,843 (2019: £15,901) represents his salary and related National Insurance for the year and pension contributions into NEST. The charity also paid £12,538 (2019: £10,779) in respect of Clerk’s fees. Staff costs are split equally between management and service costs.
There were no fees or other remuneration or expenses paid to any member of the managing body of the charity.
7. SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION
| This is stated after charging: Depreciation Independent Examiner fee |
2020 2019 £ £ 1,201 1,200 1,560 1,560 |
|---|---|
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
8. FIXED ASSETS Property, Plant and Equipment
| COST At 1stJanuary 2020 At 31stDecember 2020 DEPRECIATION At 1stJanuary 2020 Charge for the year At 31st December 2020 NET BOOK VALUE At 31stDecember 2020 At 31stDecember 2019 |
Almshouse Properties £777,443 £777,443 - - - £777,443 £777,443 |
Heating System £48,009 £48,009 £37,284 £1,201 £38,485 £9,524 £10,725 |
TOTAL £825,452 |
|---|---|---|---|
| £825,452 | |||
| £37,284 £1,200 |
|||
| £38,484 | |||
| £786,968 | |||
| £788,168 |
The almshouses were constructed in the late nineteenth century. There is no record of the original cost and no value is attributed thereto. The above details relate to improvements carried out which were partly funded by grants from the Housing Corporation of £125,395 and Local Authority Mortgage Loans of £18,000.
In the past, the charity acquired 23 acres of reclaimed grazing land at Gillingdrove, Chislet Marsh, Kent by bequest. No record of the value of this land has been kept so it is not included in cost but a small amount of rent is received annually (see note 3).
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
| 9. INVESTMENTS GENERAL FUND Baillie Gifford Japan Bankers Investment Trust Blackrock Fund Mgrs Ltd Cont Europe Blackrock Throgmorton Trust Doric Nimrod Air Three GCP Student Living Henderson Far East Inc Int Public Partner ord GBP0.001 J P Morgan American Investment Trust Keystone Inv Trust Majedie Asset Man Ltd Monks Investment Trust Murray Income Trust NB Private Equity Partner Class'A'Ordinary USD0.01 Pimco Global Advisors Royal London Unit Trust Standard Life Private Eqty Tst Plc Temple Bar Inv Trust Tritax Big Box Reit Witan Inv Trust Ord 5p QC Global Income & Growth Fund TRUST FUND Witan Inv Trust ord 5p QC Global Income & Growth Fund TOTAL |
Cost of units b/fwd 9,490 15,958 14,980 9,267 11,758 11,045 19,715 14,108 12,603 20,295 19,309 30,505 15,225 12,403 17,136 14,195 12,637 15,170 6,542 19,103 301,444 3,288 £3,288 £304,732 |
Cost of units bought 449,305 449,305 7,762 £7,762 £457,066 |
Cost of units sold 9,490 15,958 14,980 9,267 11,758 11,045 19,715 14,108 12,603 20,295 19,309 30,505 15,225 12,403 17,136 14,195 12,637 15,170 6,542 19,103 301,444 3,288 £3,288 £304,732 |
Cost of units c/fwd 448,410 448,410 7,762 £7,762 £456,172 |
Market Value 2020 484,643 484,643 8,218 £8,218 £492,861 |
Market Value 2019 19,815 39,760 14,450 18,920 8,165 17,820 31,433 15,012 32,603 19,443 19,760 38,360 26,880 13,915 16,497 14,240 12,895 16,605 8,852 34,725 |
|---|---|---|---|---|---|---|
| 420,150 | ||||||
| 5,498 | ||||||
| £5,498 | ||||||
| £425,648 |
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
10. DEBTORS
| Prepayments Other Debtors |
2020 £ 2,504 7,538 10,042 |
2019 £ 2,474 3,767 |
|---|---|---|
| 6,241 |
| 11. CREDITORS Amounts falling due within one year Other creditors |
2020 2019 £ £ 7,945 8,489 |
|---|---|
12. RESERVES
| At 1stJanuary Income Expenses Revaluation of investments At 31stDecember |
General Fund Trust Fund Cyclical Repairs Reserve 2020 TOTAL 2019 TOTAL £ £ £ £ £ 1,283,831 10,577 16,338 1,310,746 1,242,949 146,298 146,298 138,134 (73,468) (73,468) (135,464) 27,240 172 27,412 65,126 |
|---|---|
| 1,383,901 10,749 16,338 1,410,988 1,310,746 |
The Cyclical Repairs Reserve was set up to provide for those items of ordinary maintenance and repair of the Almshouses and other property recurring at infrequent intervals.
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DORKING CHARITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] DECEMBER 2020
13. GRANTS
During the year, the following grants were made:-
| Individual Institutional |
2020 - - - |
2019 1,000 - |
|---|---|---|
| - |
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