## **THE MILLS CHARITY** ## **ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 JANUARY 2022** Charity Number: 207259 Regulator of Social Housing Registration Number: 5122 **Ensors Accountants LLP Floor 3, Connexions, 159 Princes Street Ipswich IP1 1QJ** **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **INDEX** - **Page No. 3 OFFICERS AND GENERAL INFORMATION 4 – 7 TRUSTEES’ ANNUAL REPORT 8 - 10 INDEPENDENT AUDITORS REPORT 11 BALANCE SHEET 12 STATEMENT OF FINANCIAL ACTIVITIES 13 STATEMENT OF CASH FLOWS 14 – 24 NOTES TO THE ACCOUNTS 25 STATEMENT OF FINANCIAL ACTIVITIES – COMPARATIVE YEAR** 2 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **OFFICERS AND GENERAL INFORMATION** **TRUSTEES:** Mr M J Kelleway Rev M Vipond Mrs N Warner Mrs J Blore Mr J Robbins Mr T M P Donsworth Dr R Bushaway Mr J R Tanner **REGISTERED OFFICE:** The Mills Charity PO Box No 1703 Framlingham IP13 9WW **CHARITY NUMBER:** 207259 **REGULATOR OF SOCIAL HOUSING** 5122 **REGISTRATION NUMBER:** Registered on: 4 February 2021 **BANKERS:** Barclays Bank plc Leicester LE87 2BB CCLA Investment Management Ltd Senator House 85 Queen Victoria Street London EC4V 4ET **INDEPENDENT AUDITORS:** Ensors Accountants LLP Floor 3, Connexions 159 Princes Street Ipswich IP1 1QJ **SOLICITORS:** Birketts Providence House 141 – 145 Princes Street Ipswich IP1 1QJ **INVESTMENT ADVISORS:** Investec 30 Gresham Street London EC2V 7QN J M Finn 4 Coleman Street London EC2R 5TA Brewin Dolphin Fraser House 23 Museum Street Ipswich IP1 1HN 3 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **TRUSTEES ANNUAL REPORT** The Trustees present their Report for the year ended 31 January 2022. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with Charity’s Scheme, the Charities Act 2011, the Statement of Recommended Practice ‘’Accounting and Reporting by Charities’’, and FRS 102. ## **Governing document** The Charity was established to execute the will of Thomas Mills who died in 1703 and a formal scheme was registered with the Charity Commission dated 16 November 1915. Various amendments have taken place over the years, from 9 January 1981 to the latest dated 11 December 2020. The Mills Charity is an unincorporated association. The Charity Registration number is 207259 and its registered address is PO Box No 1703, Framlingham, Woodbridge, Suffolk, IP13 9WW. ## **Trustees** The Trustees during the year and their appointing body were as follows: - |Mr Nick Corke (Ceased 30 June 2021)|Framlingham Town Council| |---|---| |Mr Martin J Kelleway|Co-optative Trustee| |Rev Mike Vipond|Co-optative Trustee| |Dr Charles Wright (Ceased 14 March 2022)|Co-optative Trustee| |Mrs Nicola Warner|Co-optative Trustee| |Mrs Jane Blore|Co-optative Trustee| |Mr James Robbins|Co-optative Trustee| |Mr Timothy M P Donsworth|Co-optative Trustee| |Mr James R Tanner (Appointed 14 June 2021)|Framlingham Town Council| |Dr Ruth Bushaway (Appointed 14 March 2022)|Co-optative Trustee| Co-optative Trustees are appointed by the Board of Trustees with Nominative Trustees appointed by the respective bodies. The Nominative Trustees are appointed for a four-year period and the Co-optative Trustees for a five-year period. The Annual General Meeting is normally held in April, May or June. The Charity's advisors are set out on page 1. When a vacancy occurs for a co-opted Trustee, the remaining Trustees seek to appoint an individual with skills and experience which they feel will be of benefit to the Charity. On appointment, new Trustees are given copies of the original Trust Deed and the latest Annual report and accounts. There is no formal induction and training programme, but individual Trustees may attend seminars to update themselves when they feel it necessary. ## **Aims and Organisation** The Charity’s area of benefit is Framlingham and the surrounding area, where it is able to provide assistance for those in need, hardship, or distress, provide and maintain the Almshouses and more recently the Trustees may assist with other projects which are for the general benefit of the inhabitants of Framlingham and the surrounding area. The Trustees are confident that the Charity’s objectives described above are in accordance with the Charity Commission’s general guidance on public benefit. ## **Review of Progress, Achievements, Investment Policy and Grant making policy** During the financial year to 2022, The Mills Charity helped in a variety of ways, the people and organisations in Framlingham and some of the contiguous parishes. This assistance included financial help to a number of people in need who had applied to the Charity for assistance, amounting during the year to £216 (2021: £250). Several organisations applied for assistance; generally, for improvements or repairs to existing facilities, for which grants for the year amounted to £5,698 (2021: £50,000). Trustees considered each application on its merits according to the terms of its Scheme and the Charities Commission guidance on public benefit, so not all requests were agreed. 4 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **TRUSTEES ANNUAL REPORT (Continued)** The risks involved with the Almshouses and tenanted properties are mitigated by the Trustees having adequate insurance, undergoing regular property reviews and a programme of repair work, as well as having a personal alarm system at the Almshouses. There are no restrictions on the Charity’s power to invest. Trustees consider the risk profile and the investment manager’s view of the market prospects, with a view to ensuring capital appreciation of the fund exceeds inflation. Our strategy is reviewed with our investment managers annually. Welcome to my first Chairman’s report. Thank you to Nick Corke for his 12 years of service to the charity and for setting a high standard to follow. There have also been other changes to the Trustees governing the charity this year, with Charles Wright also stepping down after 15 years but with Dr Ruth Bushaway and James Tanner joining, the later as the Framlingham Town Council representative. In the office, our Manager, Karren Piper is joined by Gemma Yeats. 2021/22 has seen the country move through lockdowns and finally pull out of the pandemic. It is now normal to be seen out in public without a mask! It remains a challenging time for the wellbeing of our licensees’ and other tenants with household expenditure, in particular energy, coming under inflationary pressure for the first time in many years. 2021/22 saw the Charity donate £5,915 to local causes and to individuals in need in our Community. Most school trips have been cancelled and delayed until summer 2022. This year saw the completion of Mills Piece, in Badingham Road providing 6 new homes for young families in Framlingham. The Mills Charity is now a Registered Housing Provider and a member of the Housing Ombudsman, a position that holds us in good stead for future developments. Our office in 24B Well Close Square, Framlingham now provides an efficient modern office with a drop-in centre for the licensees to speak to the team if they have a need to. All the charities properties are now in easy walking distance. Following completion of the renovation works to 6 Station Road, the property is now income producing. Tomb House needs repairs and plans have been drawn up for some internal improvements subject to listed building consent. This work will be carried out in 2022/23. 2021/22 has been a consolidation year, Karren & Gemma are close to completing the Charity’s policies and procedures documentation. 2022 will see the launch of the new charity logo and the website is to be rejuvenated to allow licensees and others access to documents, application forms and other charity information. The Mills Charity is very much a team effort, and I would like to take this opportunity to thank my fellow Trustees for their support and help throughout the year. A special thank you goes to our Manager Karren Piper for showing me the ropes and all her hard work, against the odds. Another challenging year but we are in a great place for the next leap. Jane Blore, (Chairman) 5 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **TRUSTEES ANNUAL REPORT (Continued)** ## **Financial review** The Charity holds investments and short-term deposits with a value of approximately £6,788,000 (2021: £5,390,000). During the year the investments produced an income of approximately £104,000 (2021: £96,000). The Mills Charity made contributions totaling £5,915 (2021: £50,250) to the local community in the form of donations to individuals and community groups. ## **Unrestricted Funds** The unrestricted fund had a value of £886,188 as at 31 January 2022, divided as follows: **Cyclical Maintenance Fund** is a fund established for the regular maintenance and repair of the Almshouses and other property belonging to the Charity. The amount held within this reserve at the balance sheet date is £104,121. **Unrestricted Funds** are held by the Trustees for the purposes of the Charity’s aims and organisation as discussed above. The fund value has a value of £782,067 as at the balance sheet date. ## **Restricted Funds** The restricted fund had a value of £303,574 as at 31 January 2022, divided as follows: **Extraordinary Repair Fund,** established to provide for the extraordinary repair, improvement or rebuilding of the Almshouses and other property belonging to the Charity. The amount held within this reserve at the balance sheet date was £290,411. **H M Turner Trust** is a fund established by a bequest from the late Mr H M Turner, a former Chairman of the Trustees, the income from which is to be distributed amongst the residents of the Almshouses at Christmas each year. **A T Sheen Trust** is a fund established by the late Mr A T Sheen, the income from which is to be distributed amongst the residents of the Almshouses at Easter each year. The amount held within this reserve and the H M Turner Trust at the balance sheet date is £202. **Framlingham Community Centre** is a fund held by the Charity for use by any future plan to build a community centre after a failed project back in prior years. The amount held within this reserve at the balance sheet date is £12,961. ## **Endowment funds** This fund was established by original deed as a permanent endowment of which income is available for general charity purposes. The capital may not be spent without permission from the Charity Commission. The Trustees have committed to the refurbishment of the Almshouses in Framlingham from the annual surplus from general income. The amount held within this reserve at the balance sheet date is £8,583,644. ## **Reserves policy and going concern** Our balance sheet remains strong with net assets of £9,773,406 and the ownership of the Almshouses in Station Road and other various properties. The Trustees have reviewed the circumstances of the Mills Charity and consider that adequate resources continue to be available to fund the activities for the foreseeable future. The Trustees are of the view that the charity is a going concern. The unrestricted free funds stand at £172,000, at the year end, which is sufficient funds to cover 6 months of rental expenditure, assuming no further rental income was received in this time. We therefore consider this to be a sufficient amount of free funds to support the Charity. Due to the Charity's funding status the Trustees do not consider it necessary to have a formal policy on holding reserves. 6 THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022 TRUSTEES ANNUAL REPORT (Continued) Fundralslng actl¥rtSes Thè Chanty did not undertake fundraising athitses during the year. Int￿18 generated through donations lh* amounted to £3￿.000, of whith £300,000 was endowrnent The remainder of the Charity's income was derived mainly from charita￿e &tivitses of£202.000. which i￿4￿￿ed investN*nt income of £104k. Statgnwt of Trustees. Responsth11tt6•s Thè TrustÈ8s are responsible prep8ring the 8(xy)unts in aC0)rdar￿ with ￿l¢abse law and UnTted Kingdom Generally Accepted Acc￿n•ing P￿tiCe. Law applicable to charilies in Engl￿￿1 and Wale5 requwes the TrustÈ&s to kyepare FInanCh￿ Statements èa{* fin8niial year whith give a Iwe arKI la￿ vivw of Ihe C￿rI￿$ finwcid aclivikn& during th8 year and of its ffinancial posiliM at the year*nd being 31 JarHJary 2021 In preparing those Financrdl Ststements ts Trustees afe requTrl to: al select suttable al￿oUnti￿ ￿T￿e$ aThJ th￿ appty them (x)r6thnty. bl observe the methc#Js and in Ihe ChaFities SORP cl make judgements estimates that are reason￿ w￿rt.. dl stste whether aP[￿l￿9bIe aruJuntsr*J standar¢Js and st3t8Thents of recammended practice have been fdh)wed, sut4"aCt to any departure5 disdc6ed and exF4ained in thè accounts; arvj el prepar¢ the accxjunts on the going rA)nrEm basi5 unless it is inapprq)riate to assumè that the Charity c4Jrtinue in ￿eral￿n. The Trustees are reS[￿s1￿￿e keesyng pr(yr accountiThJ r￿ordS that disdose with reasonab￿ accuracy the finanual positK)n of the Charty an¢J whith enable thgm to ensure that the Financial Statem8nts (x)rnply with the Charrties Act 2011, the applitsLle Chariti8s lAc(￿unts and ReFKJrtsl Regu￿t￿an5 and provisions of the Charty's Sch8tne. They are akn resp)nsiblè for safèguardiru assels of the Charity and h￿(% kn takJ'ryJ reasonable steps for the preven11￿ and detecti￿ of frdud and other irreg(darsb"es. In so far as the Trustees are a￿e. there k% no relevant audit informati)n of whtd) the Chariws auditors are unaware. aThJ the Trustees have laken all steps Ihey wghl to have taken to make themselves aware of any relevant audit inforniation arKJ to e51abltsh that the al￿rtOrS are aware of Ihat informatK)n. Audltors A resolution w?11 be pr0[A￿￿ at the Annual Gen8rdl M8etirwJ that Ens(Ys Accwntants LLP be ra-appointgd as audttors to the charity for the ensuirvj ￿. Mrs Jane Blore , jchainnanj (On BehaW of the Trustees) **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE MILLS CHARITY** ## **Opinion** We have audited the financial statements of the Mills Charity for the year ended 31 January 2022 which comprise the Balance Sheet, the Statement of Financial Activities, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the Charity's affairs as at 31 January 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **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 Charity 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 trustees' 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 charity'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. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 8 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE MILLS CHARITY (Continued)** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the Statement of Trustees' Responsibilities, 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 Trustees 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 Trustees are responsible for assessing the Charity’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 Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditors’ 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the charity operates in and how the charity is complying with the legal and regulatory framework; - enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known, actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws or regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. - assessment of key accounting estimates within the financial statements in order to assess their reasonableness to determine whether there is any bias in the estimates. - review of meeting minutes of Trustees. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 9 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **Use of our report** This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors' 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 Charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed. …………………………. Ensors Accountants LLP Chartered Accountants & Statutory Auditor Connexions 159 Princes Street Ipswich Suffolk IP1 1QJ Dated: 15/09/2022 10 THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022 BALANCE SHEET Totsl Funds 2022 Totsl Funds 2021 Fixpd Assets Taroible assets Freehold land & buddings ant & equipm￿ Investments 3.523.281 3.295.628 319 4.959.942 5.*0.426 9AW5T5 8.255.889 Curr•ntAss•ts Debtors Cash In bank and in harKI Bank account5 20.302 19.931 298.779 431.767 319.081 451.698 Current Llabllltleg 10 30250 128.(*9 Net Current Assets 288.831 323.629 Total Assets less CurTent UabUItI&s 9.7n.406 8.579,518 The Funds ofthe Charity Endowment fvnds Restricted funds Unrèstrictèd funds 13 14 16 8.583.644 303.574 886,188 7,418,121 268,469 892.928 9,773,406 .579,518 The nolas on pages 14 to 25 forn pwi ofthese accounts. Approved by the Tru8tee$ on ....... .. . .. arKJ S¥￿e￿ on Iheir beh￿1 ty. Jane Blore (Chaim7an} n J Kdleway 11 THE MILLS CHARtrY FOR THE YEAR ENDED 31 JANUARY 2022 STATEMENT OF FINANCIAL ACTlVtriES Total Funds 2022 Total Fund$ 2021 Funds Funds Fund5 Income and end0￿Ments from Investrnents Charitable act￿rtieS Rents & w￿￿eaveS Grants 18 103.716 367 104,083 95.960 201.735 201.735 161.169 300,LMJO Total Income 305.451 367 605.818 257.129 Expenditure on Raising lunds Inveslrll8nl managem￿1 CharilatAe ￿t￿[beS mshous88 Lai proparty èxp￿$•$ Grarrt5- relief in need Grants- general bèn*fft 31.Ll 31.tM)2 29,416 19 19 105,895 191.055 4.014 9.492 1(A,295 191,055 4.014 9.492 66.955 87.533 12.734 62.485 20 Total expendEtur• 310.456 31.002 341.858 259,123 Operating surplus 15.0051 (331 268,998 263,960 {1,994} Net gains & Iloss8sl on inv8stmgnts: Realised Unrealised Gains on revaluatKJn of assets 66.401 203.415 25,￿) 66.401 238.527 625.000 180.4541 129,037 35,112 Nèt Incomè (5.(X)5) 35.079 1.163.814 1.193.888 46,589 Transfers between funds {1.n51 1.709 Net mo¥8mont In funds {6.7401 35.105 1.165.523 1.193,888 46,589 Reconcaiation of funds: Totsl furKls tNwght foward 892.928 268.469 7.418.121 8.579,518 8.532,929 Totsl lunds cèrrl8d forward 17 886.188 303.514 8.583.644 9,773.406 8,579.518 The Th)les on page 14 to 24 fomi part ofthese aCc￿ts. Approv*1 by th8 T￿jst￿ on ..Is.I.q.11.L. aThJ SIg￿j ￿1r behalf by: Jantr 81(xe IChairm8nl art￿) J 12 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **STATEMENT OF CASHFLOWS** |**Note**
**Cash flows from operating activities**
**23**
**Cash flow from investing activities**
Investment income
Fixed asset additions
Purchases and sale of investments
Movement between investments and cash and cash equivalents


**Decrease in cash and cash equivalents**
Cash and cash equivalents at beginning of the year

**Cash and cash equivalents at end of the year**
|**2022**
**£**
**63,181**
104,083
(228,955)
28,703
(100,000)
________
**(196,169)**
________
**(132,988)**
431,767
________
**298,779**
________|**2021**
**£**
**17,319**
95,960
(763,286)
21,652
181,657
________
**(464,017)**
________
**(446,698)**
878,465
________
**431,767**
________| |---|---|---| 13 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **NOTES TO THE ACCOUNTS** ## **1. ACCOUNTING POLICIES** The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Mills Charity meets the definition of a public benefit entity under FRS 102. ## **a) Basis of preparation and assessment of going concern** These financial statements have been prepared under the historical cost convention except that investment assets are carried at market value. The currency of the accounts is the pound and the figures shown have been rounded to the nearest pound. The Charity has prepared its financial statements in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102, in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has since been withdrawn. The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’ as described above. The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. ## **b) Fund accounting** - Unrestricted funds are available for use at the discretion of the Trustees in the furtherance of the general objectives of the Charity. - Designated funds are unrestricted funds earmarked for particular purposes (as detailed in note 14). - Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal (as detailed in note 12). - Endowment fund was established by original deed as a permanent endowment of which income is available for general charity purposes. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and advice relating to the fund are charged against the fund. ## **c) Income** All incoming resources are included in the statement of financial activities when receipt is probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: - Voluntary income received by way of donations, grants and gifts is included in full in the Statement of Financial Activities when receivable at fair value, except insofar as they are incapable of financial measurement; - Investment income is included when receivable; and - Incoming resources from charitable activities are accounted for when earned. 14 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **NOTES TO THE ACCOUNTS CONTINUED** ## **1. ACCOUNTING POLICIES CONTINUED….** ## **d) Resources expended** Liabilities and expenditure are included on an accruals basis and are recognised when there is a legal or constructive obligation to pay. Grants expended in the year are charged in the same manner, grants offered at the balance sheet date are noted as commitments where there is no obligation to pay. Liabilities and expenditure include VAT which the Charity is unable to recover, and is reported as part of the expenditure to which it relates. Most costs are directly attributed to the relevant category of resources expended in the Statement of Financial Activities. Charitable activities costs include costs of preparation and audit of statutory accounts, the costs of Trustee meetings and cost of any legal advice to Trustees on governance or constitutional matters. ## **e) Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **f) Creditors** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing any trade discounts. ## **g) Fixed assets, Investment properties and Investments** Freehold Land and Buildings are let out to further the Charity’s own purposes by providing accommodation to the Charity’s beneficiaries and are classified as fixed assets accordingly. They are initially measured at cost and subsequently at cost less impairment. The Charity undertakes an ongoing programme of renovation such that depreciation is not considered to be material. Assets costing more than £500 are capitalised. Plant & equipment comprises of computer equipment and is depreciated at a rate of 1/3rd per annum on a straight-line basis. Investment Property held as fixed assets is stated at market value at the balance sheet date with any gain or loss taken to the statement of financial activities in the underlying fund. Investment property will be revalued on a rolling five-year basis. Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the statement of financial activities in the underlying fund. Investments are classified as fixed asset investments when the Charity does not expect to realise them within 12 months of the balance sheet date. The Charity holds investments with stockbrokers which are initially recognised at transaction value and subsequently measured at the year end at market value. ## **h) Financial Instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the balance sheet when the charity becomes party to the contractual provisions of the instrument. 15 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **ACCOUNTING POLICIES CONTINUED….** Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic Financial Assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Classification of Financial Liabilities**_ Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. ## _**Basic Financial Liabilities**_ Basic financial liabilities, including creditors, bank loans, loans from fellow group undertakings and preference shares that are classified as debt, are initially recorded at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Cash at bank and in hand**_ Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. ## **2. Judgements and key sources of estimation uncertainty** In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **Useful economic lives of tangible assets** The annual depreciation charge for tangible assets is calculated based on the estimated useful lives and residual values of the tangible assets. To ensure the depreciation charge remains appropriate the useful lives and residual values are reviewed annually. 16 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **Impairment of assets** At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with it’s carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. ## **Valuation of investments** We are placing reliance on the expert for the estimates and judgements in the valuation of quoted investments values provided by investment managers at market value and also for valuation of Investment properties by Chartered Surveyors. ## **3. Trustee remuneration & related party transactions** No Trustee or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year (2021 – £nil). In the period £nil (2021: £nil) was donated to The Mills Educational Foundation. This Charity has the same Trustees as The Mills Charity. ## **4. Taxation** As a Charity, The Mills Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity. |**5.**
**Fees for audit of the accounts**
Auditors fee for reporting on the accounts and provision of services|**2022**
**£**
12,486
|**2021**
**£**
10,800
| |---|---|---| ## **6. Employees** During the current year the Charity paid one full time Clerk (2021: 1) for the Charity and two ad hoc employees (2021: 1), the gross salaries for this amounted to £33,281 (2021: £27,833) and Employers National Insurance Contributions amounted to £nil (2021: £nil) with employer pension contributions of £916 (2021: £835). ## **7. Fixed asset investments** Total fixed asset investments comprise £4,980,426 (2021: £4,604,942) of financial assets and £980,000 (2021: £355,000) of property investments. |**a)**
**Movement in fixed asset investments**
Market value at 1 February 2021
(Loss) / Profit on disposal of investments
Change in year end market value
Fees
Money invested
Transferred
**Market value as at 31 January 2022**|**2022**
**£**
4,604,942
66,401
238,528
(31,002)
1,557
100,000
________
4,980,426
|**2021**
**£**
4,765,363
(80,454)
129,037
(29,417)
2,070
(181,657)
________
4,604,942
| |---|---|---| 17 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** |**b)**
**Investments at market value comprised:**
Equities
Fixed interest securities
Cash
**Market value as at 31 January 2022**|4,261,624
631,007
87,795
________
4,980,426
|3,626,364
879,978
98,600
________
4,604,942
| |---|---|---| The Charity, as at the balance sheet date, has no deposits which are due to mature within the next 12 months (2021: Nil). |**Stock exchange investments comprise**
**c)**Holding of more than 5% of total investments:
COIF Charities Investment Fund
UK
North America
Other international
Other alternative assets
**d)**
**Property investments**
Market value brought forward
Transfer from Freehold Land and buildings (1 building)
Revaluation of transferred land and building – Gain
Market value carried forward|**2022**
**£**
290,412
1,327,569
841,907
654,089
529,075
_______
3,643,052
_______
355,000
-
625,000
________
980,000
|**2021**
**£**
255,299
1,357,475
530,021
563,371
366,432
________
3,072,598| |---|---|---| |||_______
355,000
-
-
________
355,000
| The investment properties brought forward consist of 2 properties. These properties were valued January 2022 by Clarke & Simpson on an open market basis and have been adjusted in line with the revaluation policy. On an historical cost basis these would have been included at an original cost of £175,536. During the year, 1 further property was transferred to investment property from land and buildings. The property has been revalued at open market value and the historical cost of this property was nil. The property was transferred as it is now let out at an open market value by the Charity. 18 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **8. Tangible Fixed Assets** |**9.**
**Debtors**
Investment income
Prepayments
Loan - MEF
**10.**
**Creditors**
Creditors and accruals
Rental deposits
PAYE and NIC
**Cost**
At 1 February 2021
Additions
Disposals
At 31 January 2022
**Depreciation**
At 1 February 2021
Charge for the year
Depreciation on disposal
At 31 January 2022
**Net book values**
At 31 January 2021
At 31 January 2022||**Land &**
**Buildings**
**Plant &**
**Equipment**
**Total**
**£**
**£**
**£**
3,295,628
1,340
3,296,968
227,653
1,301
228,954
-
-
-|**Land &**
**Buildings**
**Plant &**
**Equipment**
**Total**
**£**
**£**
**£**
3,295,628
1,340
3,296,968
227,653
1,301
228,954
-
-
-| |---|---|---|---| |||3,523,281
2,641
3,525,922|| |||-
1,021
1,021
-
752
752
-
-
-|| |||-
1,773
1,773|| ||||| |||3,295,628
319
3,295,947|| ||||| |||3,523,281
868
3,524,149|| |||**2022**
**£**
13,652
6,125
525
________
20,302
________
21,208
8,362
680
________
30,250
|**2021**
**£**
13,129
6,802
-
________
19,931
________
123,763
3,587
719
________
128,069
| ## **11. Pensions** Employees are automatically enrolled into a multi-employer, defined contribution occupational pension scheme with People Pension, unless they exercise their right to opt-out of the scheme membership. The Mills Charity makes a 3% contribution to the pension scheme. The employer’s contribution is charged to the Statement of Financial Activities in the period in which the salary to which the pension relates is due. ## **12. Commitments** At the Balance Sheet date, the Charity did not have any grant commitments which were not provided for within the accounts. (2021: £nil commitment). 19 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **13. Endowment Funds** The Mills Charity Endowment Fund was established in 1703 as a Permanent Endowment for the benefit of the local community. The H M Turner and A T Sheen funds are expendable endowments which were received later, and the Trustees have resolved that the income from these funds should follow the donor’s wishes to support the residents of the Almshouses. The funds are represented by tangible fixed assets and investments. ||**Mills**||||| |---|---|---|---|---|---| ||**Charity**|**H M Turner**|**A T Sheen**|**2022**|**2021**| ||**£**|**£**|**£**|**£**|**£**| |Balance at 1 February 2021|7,400,856|17,015|
250|7,418,121|7,414,113| |Income|300,000|-|
-|300,000|-| |Management fees|(30,867)|(135)|
-|(31,002)|(29,416)| |Reinvested income|1,709|-|
-|1,709|2,129| |Gains & investments|||||| |-Realised|66,401|-|
-|66,401|(80,454)| |Gains on revaluation of assets|625,000|-|-|625,000|-| |-Change in year end|||||| |market value|201,866|1,549|
-|203,415|111,749| ||__________|__________|__________|__________|__________| |Balance at 31 January 2022|8,564,965|18,429|250|8,583,644|7,418,121| ||__________|__________|__________|__________|__________| |**4.**
**Restricted funds – Income funds**|||||| ||**Framlingham**
**Community**
**Centre**|**Turner/**
**Sheen**
**Income**|**Extraordinary**
**Repair Fund**|
**2022**|**2021**| ||**£**|**£**|**£**|**£**|**£**| |Balance at 1 February 2021|12,935|
235|255,299|
268,469|251,199| |Income|26|
367|-|
393|382| |Additions in the year|-|
-|-|
-|-| |Expenditure|-|
(400)|-|
(400)|(400)| |Change in market value|-|
-|35,112|
35,112|17,288| ||__________|_________|__________|_________|_________| |Balance at 31 January 2022|12,961|202|290,411|303,574|268,469| ||__________|_________|__________|_________|_________| ## **14. Restricted funds – Income funds** The Extraordinary Repair Funds are required under the Charity’s Scheme and transfers must be made each year from the income resources of the Charity. The funds are maintained at a relatively high level in case major repairs are required. 20 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **15. Designated Funds – Income funds** |**Designated Funds – Income funds**||| |---|---|---| ||**2022**|**2021**| |**Cyclical maintenance fund**|**£**|**£**| |Balance at 1 February 2021|102,955|101,791| |Funds introduced|960|960| |Interest allocation from unrestricted funds|206|204| ||_______|_______| |Balance at 31 January 2022|104,121|102,955| ||_______|_______| The Cyclical Maintenance Funds comprise funds set aside for cyclical repairs at the Almshouses and other properties owned by the Charity. ## **16. Unrestricted funds** |Balance at 1 February 2021
Income
Allocation in year
Fund transfer
Expenditure
Balance at 31 January 2022|**Designated**
**Fund**
**£**
102,955
-
1,166
-
-
_________
104,121
|**Unrestricted**
**Funds**
**Total Funds**
**2022**
**Total Funds**
**2021**
**£**
**£**
**£**
789,973
892,928
867,617
305,451
305,451
256,773
(1,166)
-
-
(1,735)
(1,735)
(2,155)
(310,456)
(310,456)
(229,307)
__________
_________
_________
782,067
886,188
892,928


| |---|---|---| ## **17. Analysis of net assets between funds** |**Designated**
**Funds**
**Unrestricted**
**Funds**
**£**
**£**
Freehold land and buildings
-
609,282
Plant and equipment
-
868
Investment assets
-
370
Current assets
104,121
201,797
Current liabilities
-
(30,250)
________
________
104,121
782,067

|**Restricted**
**Funds**
**Endowment**
**Funds**
**£**
**£**
-
2,913,999
-
-
290,411
5,669,645
13,163
-
-
-
________
________
303,574
8,583,644

|**Total**
**Funds**
**2022**
**£**
3,523,281
868
5,960,426
319,081
(30,250)
________
9,773,406
|**Total**
**Funds**
**2021**
**£**
3,295,628
319
4,959,942
451,698
(128,069)
________
8,579,518
| |---|---|---|---| 21 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** |**18. Investment income**
**2022**
**£**
Dividends UK Equities
63,623
Interest UK Fixed Interest Securities
5,429
Interest UK Unit Trusts
8,563
Overseas Securities - Dividends
10,006
Overseas Securities – Interest
5,652
Overseas Securities – Unit Trusts
814
Interest on Deposits
42
Dividends UK Unit Trusts
7,860
Dividends Real Estate Investment Trust
1,012
Excess income funds
585
Accrued interest
497
______
104,083
______
**19. Resources expended**
Payments re Almshouses:
Attendants salary
-
Rates, electricity, gas & water
10,319
Gardener
4,006
Insurance
3,091
Repairs & maintenance & alarms
28,682
Subscriptions
-
Christmas dinner and sundries
-
Donations - Turner/ Sheen distribution
400
Governance and support costs (note 21)
59,797
______
106,295
______
Let Property:
Insurance
1,947
General maintenance and property costs
174,527
Rates and electric
1,249
Professional fees
4,788
Gardener
-
Governance and support costs (note 21)
8,544
______
191,055
|**2021**
**£**
53,079
9,746
5,654
9,190
5,460
707
2,218
8,426
803
677
-
______
95,960
| |---|---| ||______
-
6,145
1,448
3,505
30,094
355
38
400
24,970
______
66,955
| ||______
2,292
51,276
1,915
5,142
1,938
24,970
______
87,533
| 22 **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** |**20. Grants - General Benefit**
Framlingham Area Youth Action Plan
FabLab Appeal
Framlingham Hour Community Project
Framlingham Primary School
Badingham Play School
Governance and support costs (note 21)|**2022**
**£**
-
-
50
5,000
648
3,794
______
9,492
|**2021**
**£**
10,000
30,000
10,000
-
-
12,485
______
62,485
| |---|---|---| ## **21. Management and administration – Support and governance costs** |Office costs
Staff costs
Travelling
Auditors’ fee
Bookkeeping, payroll fee and other
Bank charges
Insurance
Professional fees
Sundry expenses
Depreciation of equipment
Profit/(loss) on disposal
_No. of properties_|**2022**
**2021**
**Alms**
**houses**
**Let**
**property**
**Relief in**
**need**
**General**
**benefit**
**Total**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
12,702
1,815
807
806
16,130
6,212
26,930
3,847
1,710
1,710
34,197
29,022
123
18
8
7
156
-
9,833
1,405
624
624
12,486
10,800
2,671
382
170
169
3,392
6,854
138
20
9
8
175
240
1,871
267
119
119
2,376
575
2,863
409
182
181
3,635
20,386
2,074
296
132
132
2,634
820
592
85
37
38
752
318
-
-
-
-
-
(318)| |---|---| ||59,797
8,544
3,798
3,794
75,933
74,909| ||_28_
_4_
_-_
_-_
_32_
_26_| The basis of allocation of the above governance and support costs were 90% allocated to alms houses and let property based on the number of dwellings and 5% to each of the grants for relief in need and general benefit. ( For the previous year 2021: The basis of allocation of the above governance and support costs were 1/3[rd] to each of the Almshouses and let property with 1/6[th] being allocated to each of the grants for relief in need and general benefit) ## **22. Grants - relief in need** |Grants - relief in need
Governance and support costs (note 21)|**2022**
**£**
216
3,798
______
4,014
|**2021**
**£**
250
12,484
______
12,734
| |---|---|---| 23 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** **23. Cash flow from operating activities** |Net movements in funds

Depreciation
(Profit)/ loss on disposal
Market value movements
Investment income
Gains on revalued assets

Increase in debtors
Increase/ (decrease) in creditors

Net generated used in operating activities
|**2022**
**£**
1,193,888
752
-
(304,928)
(104,083)
(625,000)
________
160,629
371
(97,819)
________
63,181
|**2021**
**£**
46,589
318
(319)
(48,583)
(95,960)
-
________
(97,955)
3,325
111,949
________
17,319
| |---|---|---| 24 ## **THE MILLS CHARITY FOR THE YEAR ENDED 31 JANUARY 2022** ## **STATEMENT OF FINANCIAL ACTIVITIES (PRIOR YEAR)** ||**Unrestricted**|**Restricted**|**Endowment**|**Total**|**Total**| |---|---|---|---|---|---| ||**Funds**|**Funds**|**Funds**|**Funds**|**Funds**| |||||**2021**|**2020**| ||**£**|**£**|**£**|**£**|**£**| |**Income and endowments from**|||||| |Investments|95,604|356|-|95,960|119,232| |Other|||||| |Rents & wayleaves|161,169|-|-|161,169|156,355| |Donations and legacies|-|-|-|-|-| ||______|______|________|________|______| |**Total Income**|256,773|356|-|257,129|275,587| ||||||| ||______|______|________|________|______| |**Expenditure on**|||||| |Raising funds|||||| |Investment management|-|-|29,416|29,416|30,470| |Charitable activities|||||| |Almshouses|66,555|400|-|66,955|114,376| |Let property expenses|87,533|-|-|87,533|228,235| |Grants - relief in need|12,734|-|-|12,734|13,257| |Grants - general benefit|62,485|-|-|62,485|41,781| ||______|______|________|________|______| |**Total expenditure**|229,307|400|29,416|259,123|428,119| ||||||| ||______|______|________|________|______| |Net gains & (losses) on investments:|||||| |Realised|-|-|(80,454)|
(80,454)|(1,307)| |Unrealised|-|17,288|111,749|129,037|367,335| ||_______|______|______|______|______| |**Net Income**|27,466|17,244|1,879|46,589|213,496| |Transfers between funds|(2,155)|26|2,129|-|-| ||**______**|**______**|**_______**|**_______**|**______**| |**Net movement in funds**|25,311|17,270|4,008|46,589|213,496| ||||||| ||______|______|_______|_______|______| |**Reconciliation of funds:**|||||| |Total funds brought forward|867,617|251,199|7,414,113|8,532,929|8,319,433| ||______|______|________|________|______| |**Total funds carried forward**|892,928|268,469|7,418,121|8,579,518|8,532,929| ||______|______|________|________|______| 25