## **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
1
## **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.
2
## **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.
3
##
##
##
##
##
##
##
|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)|
7
## **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).
8
## **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.
9
## **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|
|---|---|
10
## **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).
11
## **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**|
12
## **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.
13
## **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
-|
|---|---|---|
|||-|
14