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2023-12-31-accounts

WEST HAM NON-ECCLESIASTICAL CHARITY

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

REGISTERED OFFICE: 29-35 West Ham Lane Stratford London E15 4PH

REGISTERED CHARITY NO. 207309

REGULATOR OF SOCIAL HOUSING REGISTRATION NUMBER: A3311

WEST HAM NON-ECCLESIASTICAL CHARITY

FINANCIAL STATEMENTS

for the year ended 31 December 2023

CONTENTS

PAGE
Legal and Administrative Information 1
Report of the trustees and statement of responsibilities 2-5
Independent auditors report 6-8
Statement of Comprehensive Income 9
Statement of Financial Position 10
Statement of Changes in Reserves 11
Statement of Cash Flows 12
Notes to the financial statements 13-23

WEST HAM NON-ECCLESIASTICAL CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

for the year ended 31 December 2023

The Trustees who have served from 1 January 2023 up to the date of approval of
these financial statements were as follows:
EX-OFFICIO TRUSTEES Mayor Rokhsana Fiaz
Vicar of West Ham – Simon Nicholls
NOMINATIVE TRUSTEES Councillor Winston Vaughan
Cllr Shaban Mohammed
Cllr John Whitworth
Cllr Charlene McLean
Cllr Ann Easter
Cllr Mumtaz Khan
Iman Haque
CO-OPTATIVE TRUSTEES Mr Henry Potter (Secretary)
Councillor Winston Vaughan
Christopher Owens
REGISTERED OFFICE 29-35 West Ham Lane
Stratford
London
E15 4PH
AUDITORS Beever and Struthers
150 Minories
London
EC3N 1LS
PRINCIPAL BANKERS National Westminster Bank PLC
Gredley House
1-11 Broadway
Stratford
London
E15 4DX
REGISTERED PROVIDER OF A3311
SOCIAL HOUSING NUMBER
ALMSHOUSE NUMBER 1681
REGISTERED CHARITY NUMBER 207309

Page 1

WEST HAM NON-ECCLESIASTICAL CHARITY REPORT OF THE TRUSTEES AND STATEMENT OF RESPONSIBILITIES

for the year ended 31 December 2023

The trustees present their report together with the audited financial statements for the year ended 31 December 2023. This report is written to comply with the Charity's Scheme, the Charities Act 2011 and the Housing SORP 2018. The information on pages 2 and 5 form part of this report.

Objectives and activities

West Ham Non-Ecclesiastical Charity is a registered charity and a Registered Provider of social housing, owning property at Harris Cottages, Gift Lane, Stratford, London. Registration with the Charity Commission was on 22nd September 1962. The day to day management was undertaken through London and Quadrant Housing Trust . L&Q management of the charity is ending on 31st of March 2024 and we are handing over to Newham Council from the 1st of April 2024. The charity operates under a scheme dated 18 April 2000 as amended by a special resolution dated 11 February 2011. The Charity is also registered with the Almshouse Association, registration number 1681.

Harris Cottages is a two storey building comprising of 18 one bed self contained units. The property is designed to accommodate the elderly or the disabled living or working in the Borough of Newham.

Our Charity's purposes as set out in the charity scheme are to provide:

In meeting its objectives the charity may help people in need by:

The Board of Trustees consist of 2 ex officio trustees, up to 7 nominated trustees and up to 4 co-opted trustees. The ex officio trustees are the Mayor of the London Borough of Newham and the Vicar of the ecclesiastical parish of All Saints, West Ham. Historically the Mayor of Newham chaired meetings of the charity but on the appointment of an elected Mayor the option was given to appoint a person as ex-officio trustee to act as his or her representative. Up to May 2021, Bryan Collier, an excouncillor and Mayor of Newham undertook this role. Since May 2021, Rokhsana Fiaz, Mayor of Newham, has assumed this role.

The nominated trustees must be appointed by Newham Borough Council. Any appointment must be made at a meeting held according to the ordinary practice of the Council. Each appointment must be made for 4 years; or if the appointment is being made to fill a casual vacancy, the unexpired term of the appointee’s predecessor. The person appointed need not be a member of the Council, but should have an interest in the London Borough of Newham.

The appointment of a co-opted trustee must be made by the trustees at a special meeting. Each appointment must be for a term of 4 years. Each co-opted trustee should have an interest in the London Borough of Newham. After successful appointment, new Trustees receives induction and training.

Achievements and performance

All of our charitable activities focus on the provision of housing accommodation and associated support services within our 18 units of sheltered accommodation and are undertaken to further our charitable purposes for the public benefit. The trustees have had regard to Charity Commission's guidance on public benefit.

During the year the Charity reported a net inflow of funds of £181,169 (2022: outflow of funds of £108,195). Rental and service charge income in line with the budget'

In line with general stock market trends, the market value of the investments held at the end of the year increased by £161,543 compared to the previous financial year (2022: loss of £134,565).�

Page 2

WEST HAM NON-ECCLESIASTICAL CHARITY REPORT OF THE TRUSTEES AND STATEMENT OF RESPONSIBILITIES for the year ended 31 December 2023 Continued

Reserves

The reserve policy of the Charity is to hold reserves at 2 times its annual income to allow the Charity to adapt to changes in the income or expenditure, plus £50k to allow for emergency major property repairs.

The Trustees currently believe this amount to be £250k circa, compared to £440k in cash reserves held at the year end, 31 December 2023. The trustees are working with L&Q to identify ways to use the surplus reserves to the benefit of the residents and further the Charity's mission in the local community.

Statement of responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with Financial Reporting Standard ("FRS") 102 applicable in the UK and Republic of Ireland, and United Kingdom Generally Accepted Accounting Practice (UK Standards and applicable law). The Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity enabling them to ensure that the financial statements comply with the Charities Act 2011, the Housing and Registration Act 2008 and the Accounting Direction for Registered Providers of Social Housing 2022. 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 irregularities.

Disclosure of information to auditors

At the date of making this report each of the Charity's Trustees, as set out on page 1, confirm the following:

Structure, governance and management

Page 1 of this document sets out the trustees responsible for the Charity's governance. Day-to-day management was undertaken by London and Quadrant Housing Trust (L&Q) in accordance with a service level agreement. L&Q management of the charity is ending on 31st of March 2024 and we are handing over to Newham Council from 1st of April 2024.

The trustees consider the Board of Trustees to be the key management personnel of the charity - in charge of directing and controlling the charity. All trustees give of their time freely and no trustee remuneration or expenses was paid in the year.

In June 2018 the charity adopted a new Code of Governance – the Charity Governance Code. Values which underpins & promotes the Charities activities and purposes were adopted in June 2019. Conflict of interest policy and terms of reference and role profiles were also agreed in principle. West Ham has not adopted the 2020 code; however, it is being reviewed.

In accordance with the requirements of the Accounting Direction 2022, the trustees certify that the charity has complied with the Social Housing requirements of the Regulator's Governance and Financial Viability standard.

Page 3

WEST HAM NON-ECCLESIASTICAL CHARITY REPORT OF THE TRUSTEES AND STATEMENT OF RESPONSIBILITIES for the year ended 31 December 2023 Continued

Value for money (VFM)

VFM is about achieving the desired outcomes, for the best possible cost and maximum benefit.

VFM is defined as getting the right balance of inputs, process and outcomes, as described by the 3 Es:

The service level agreement, between West Ham Non-Ecclesiastical Charity and L&Q Housing Trust embeds the controls that are required, and will continue for the foreseeable future.

The Trustees review a quarterly performance report which highlights specific KPIs, such as rent arrears,

void loss, and repairs. The financial performance which measures the actual cost against the agreed budget is also reviewed quarterly.

Given the specific nature of the housing stock, of the charity, together with its size and location, the Trustees consider that entering into the management arrangement with L&Q Housing Trust is the best way of ensuring value for money for all stakeholders and most particularly the Charity's residents.

Measuring value for money

Under the "Value for Money Standard 2018" issued by the Regulator, additional measures required to be reported annually by the Charity are:

2023
Peer group median* 2023 2023 2022 2021 2024
Matrix Target Actual Actual Actual Forecast
Reinvestment % 2% 0% 0% 0% 0% 0%
New Supply Delivered (Social Housing Units) % 0% 0% 0% 0% 0% 0%
New Supply Delivered (Non-Social Housing Units) 0% 0% 0% 0% 0% 0%
Gearing % -3% N/A N/A N/A N/A N/A
EBITDA MRI Interest Cover % 322% N/A N/A N/A N/A N/A
Headline Social Housing Cost Per Unit £24,859.20 £6,065.81 £6,088.78 £4,560.44 £4,281.11 £6,065.82
Operating Margin (social housing lettings only) -3% 4% 12% 19% 9% 4%
Operating Margin (overall) % 12% 4% 12% 19% 9% 4%
Return on Capital Employed (ROCE) % 8% 0% 1% 1% 0% 0%

Page 4

*Value for Money Matrices benchmarking for Almshouses that are Registered Providers of Social Housing

WEST HAM NON-ECCLESIASTICAL CHARITY REPORT OF THE TRUSTEES AND STATEMENT OF RESPONSIBILITIES

for the year ended 31 December 2023

Continued

Measuring value for money cont'd

The reinvestment metric looks at the investment in properties as a percentage of the value of total properties held at the end of the year. The Charity's reinvestment percentage is Nil - (2022: Nil), the nil position is as a result of no capital or component related works being completed in the year.

The new supply delivered metric sets out the number of new social housing and non-social housing units that have been acquired or developed in the year as a proportion of total social housing units and non-social housing units owned at period end. This metric is nil for the Charity as no development or units acquisition took place in the year.

Gearing assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. It is often a key indicator of a registered provider's appetite for growth. The EBITDA MRI interest cover measure is also a key indicator for liquidity and investment capacity. It seeks to measure the level of surplus that a registered provider generates compared to interest payable; the measure avoids any distortions stemming from the depreciation charge. Both of these matrix are not applicable to the Charity as they do not have any loan facilities.

The Charity's headline operating cost per social housing unit is £6088.78 - (2022:4,560). The increase in cost per social unit reflects the increase in cost for management , service charge and maintenance costs

The Charity's operating margin is 12% - (2022: 19%). The operating margin demonstrates the profitability of operating assets before exceptional expenses such as gain/loss on fixed asset disposal. The decrease in margins reflects the spend in repairs and maintenance made to the charity's properties. The operating margins (social lettings only and overall percentages) are the same results as the Charity has no other turnover except social housing activities.

The return on capital employed (ROCE) indicates how well the Charity makes a financial return on its assets. This Charity's ROCE is 1 % - (2022:1 %) - 1% its remained the same .

Auditors

A resolution to re-appoint Beever and Struthers as external auditors was agreed at the Annual General Meeting.

The report of the Trustees was approved by the Trustees on 23 July 2024 and signed on its

Henry Potter Secretary to the Charity

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WEST HAM NON-ECCLESIASTICAL CHARITY for the year ended 31 December 2023

Opinion

We have audited the financial statements of West Ham Non Ecclesiastical Charity (the ‘charity’) for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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 Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WEST HAM NON-ECCLESIASTICAL CHARITY

for the year ended 31 December 2023 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:

Responsibilities of the board of Trustees

As explained more fully in the Trustees’ statement of responsibilities set out on page 3, 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We enquired of the Trustees and reviewed correspondence and Trustees meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Trustee have in place, where necessary, to ensure compliance. • We gained an understanding of the controls that the Trustees have in place to prevent and detect fraud. We enquired of the Trustees about any incidences of fraud that had taken place during the accounting period.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WEST HAM NON-ECCLESIASTICAL CHARITY for the year ended 31 December 2023 continued

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/OurWork/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

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 charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Beever and Struthers

Chartered Accountants

Statutory Auditor 150 Minories London EC3N 1LS

Date: 21 August 2024

Page 8

WEST HAM NON-ECCLESIASTICAL CHARITY

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2023

Notes
Turnover
3
Operating Costs
3
Operating Surplus / (Deficit)
Interest Receivable
4
Interest Payable
5
Surplus / (Deficit) for the year
6
Gains / (Loss) on value of investments
11
Total Comprehensive Income for the year		 2023
£
133,797
(117,566)
16,231
3,398
(3)
19,626
161,543
181,169		 2022
£
121,499
(98,031)
23,468
2,904
(2)
26,370
(134,565)
(108,195)

The financial statements on pages 9 to 23 were approved by the Trustees and the Secretary on 23 July 2024and signed on their behalf by:

Trustee Name Trustee Signature

Henry Potter

The Statement of Comprehensive Income relates wholly to continuing activities and the notes on pages 13 to 23 form an integral part of these financial statements.

Page 9

WEST HAM NON-ECCLESIASTICAL CHARITY

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Notes 2023 2022
£ £
Fixed Assets
Housing Properties 10 395,021 402,989
Investments 11 1,491,469 1,329,926
1,886,490 1,732,915
Current Assets
Debtors 12 15,941 29,123
Cash and cash equivalents 13 440,425 410,359
456,366 439,482
Less: Creditors
Amounts falling due within one year 14 (20,114) (26,483)
Net current assets / (liabilities) 436,252 412,999
Total assets less current liabilities 2,322,742 2,145,914
Creditors
Amounts falling due after more than one year 15 (151,934) (156,275)
Total Net Assets 2,170,808 1,989,639
Capital and Reserves
Income and Expenditure Reserve 17 700,949 681,323
Revaluation Reserve 18 1,469,859 1,308,316
Total Capital & Reserves 2,170,808 1,989,639

The financial statements on pages 9 to 23 were approved by the Trustees and the Secretary on 23 July 2024 and signed on their behalf by:

Trustee Name Rokhsana Fiaz OBE Henry Potter Mayor of Newham Trustee Name Trustee Signature Trustee Signature

The notes on pages 13 to 25 form an integral part of these financial statements.

Page 10

WEST HAM NON-ECCLESIASTICAL CHARITY

STATEMENT OF CHANGES IN RESERVES

for the year ended 31 December 2023

Balance as at 1 January 2022
Surplus / (deficit) from Statement of Comprehensive Income
Balance at 31 December 2022
Surplus / (deficit) from Statement of Comprehensive Income
Balance at 31 December 2023		 £
654,953
26,370
681,323
19,626
700,949
Income and
Expenditure
Reserve		 £
1,442,881
(134,565)
1,308,316
161,543
1,469,859
Revaluation
Reserve		 £
2,097,834
(108,195)
Total
1,989,639
181,169
2,170,808

The notes on pages 13 to 23 form an integral part of these financial statements.

Page 11

WEST HAM NON-ECCLESIASTICAL CHARITY

STATEMENT OF CASH FLOWS

for the year ended 31 December 2023

Notes
Net cash generated from operating activities (see Note i)
i
Cash flow from investing activities
Interest received
Capital expenditure on tangible fixed asset
Cash flow from financing activities
Interest paid
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
Note i
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
Increase / (decrease) in provisions
Government grants utilised in the year
Adjustments for investing or financing activities:
Interest payable
Interest receivable
Net cash generated from operating activities
Note ii
Analysis of cash and cash equivalents
Deposit accounts
Current accounts		 2023
£
26,671
3,398
0
3,398
(3)
(3)
30,066
410,359
440,425
2023
£
19,626
7,968
13,182
(6,369)
(4,341)
3
(3,398)
26,671
2023
£
57,239
383,186		 2022
£
10,632
2,904
2,904
(2)
(2)
13,534
396,825
410,359
2022
£
26,370
7,968
(16,235)
(228)
(4,341)
2
(2,904)
10,632
2022
£
53,845
356,514
440,425 410,359

The notes on pages 13 to 23 form an integral part of these financial statements.

Page 12

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023

Notes

1 LEGAL STATUS

West Ham Non-Ecclesiastical Charity is registered as a Charity in England and is registered with the Regulator of Social Housing as a Private Registered Provider of Social Housing. The registered office is 29-35 West Ham Lane, Stratford, London, E15 4PH

2 PRINCIPAL ACCOUNTING POLICIES

The Charity's financial statements have been prepared in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice for registered housing providers: Housing SORP 2018.

The financial statements comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022 and the Charities Act 2011.

As a public benefit entity, West Ham Non-Ecclesiastical Charity has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102.

The Charity’s financial statements have been prepared in compliance with FRS 102. The Charity transitioned from previous UK GAAP to FRS 102 as at 1 January 2014 and subsequently adopted the Housing SORP: 2018 update – Statement of Recommended Practice for registered social housing providers as at 1 January 2019.

2a Basis of Accounting

The financial statements are prepared on the historical cost basis of accounting, with the exception of investments which are held at fair value.

Going concern

The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future and for this reason it continues to adopt the going concern basis in the financial statements. No significant concerns have been noted. L&Q management of the charity is ending on 31st of March 2024 and we are handing over to Newham Council.

2b Turnover

Turnover represents rental and service charge income receivable and amortised capital grants and is recognised as it falls due. All turnover is recognised on an accruals basis.

2c Housing Properties

Housing properties are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development cost, interest charges incurred during the development period, and expenditure incurred in respect of improvements.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in net rental income over the lives of the properties, thereby enhancing the economic benefit of the assets, are capitalised as improvements. Only the direct overhead costs associated with new developments or improvements are capitalised. Land donated by local authorities and others is added to cost at the market value of the land at the time of the donation.

2d Social Housing Grant

Social housing grant ('SHG') received from Homes England was utilised to reduce the capital costs of housing properties, including land costs. It was allocated to the land and structure components of the associated asset in proportion to their costs. Grant receivable in respect of identifiable components is allocated.

Page 13

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

2 PRINCIPAL ACCOUNTING POLICIES (Continued)

2d Social Housing Grant (continued)

SHG due or received in advance is included as a current asset or liability.

SHG is subordinated to the repayment of loans by agreement with Homes England. SHG released on sale of a property may be repayable but is not normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in creditors.

Where individual components are disposed of and this does not create a relevant event for recycling purposes, any grant which has been allocated to the component is released to the income and expenditure account. Upon disposal of the associated property, the charity is required to recycle these proceeds.

2e Investments Fixed asset investments are recognised initially at cost and are included in the Statement of Financial Position at the market value. Any change in valuation between reporting dates is recognised in the Statement of Comprehensive Income and the gain/loss of investments goes to the revaluation reserves. 2f Depreciation

Housing Properties

The Charity separately identifies the major components which comprise its housing properties, and charges depreciation, so as to write down the cost of each component to its estimated residual value, on a straight line basis, over its estimated useful economic life.

The Charity depreciates the major components of its housing properties over the following lives:

Structure - 120 years Roof - 60 years Windows - 30 years Electrical Installation - 30 years Heating System - 20 years Boiler - 15 years Bathroom - 30 years Kitchen - 20 years

Freehold land is not depreciated.

2g Impairment p g y j group of financial assets is impaired. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. The following financial instruments are assessed individually for impairment: (a) All equity instruments regardless of significance; and (b) Other financial assets that are individually significant.

Other financial instruments are assessed for impairment either individually or grouped on the basis of similar credit risk characteristics. An impairment loss is measured as follows on the following instruments measured at cost or amortised cost: (a) For an instrument measured at amortised cost, the impairment loss is the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. (b) For an instrument measured at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that the entity would receive for the asset if it were to be sold at the reporting date.

If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be related objectively to an event

Page 14

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

2 PRINCIPAL ACCOUNTING POLICIES (Continued)

2h Taxation

By virtue of s.478 Corporation Tax Act 2010 the Charity is exempt from Corporation Tax

Value Added Tax

The Charity is not registered for VAT. In these financial statements, where applicable, expenditure is shown inclusive of irrecoverable VAT.

2i Interest Payable

Interest is capitalised on borrowings to finance developments to the extent that it accrues in respect of the period of development if it represents either:

a) interest on borrowings specifically financing the development programme after deduction of SHG received in advance; or b) a fair amount of interest on borrowings of the charity as a whole after deduction of SHG received in advance to the extent Other interest payable is charged to the Statement of Comprehensive Income in the year.

2j Revaluation Reserves

Revaluation reserve is the difference between the market value of investments and the historical cost carrying value is credited to the

2k Judgements in applying accounting policies and key sources of estimation uncertainty

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom

equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to

(i) Useful economic lives of tangible assets and associated amortisation of deferred capital grants

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the housing properties, and note 2(f) for the useful economic lives for each class of assets.

(ii) Bad debt provision - provision is made for rental arrears, which are considered to be non-recoverable. The full value of former tenant debt is provided for. The provision for current tenant debt is calculated based upon the value and age of the debt.

(iii) Impairment - An assessment is made at each reporting date as set out in note 2g as to whether an indicator of impairment exists. If such an indicator exists, an impairment assessment is carried out and an estimate of the recoverable amount of the asset is made.

2l Financial instruments

Financial instruments such as loans, accounts payables, accounts receivables and cash are classified either as basic or complex. All financial instruments are initially measured at their fair values at the time the transactions occur. Subsequently all basic Financial instruments held by the Charity are classified as follows:

Financial assets such as current asset investments and receivables are classified as loans, receivables are held at amortised cost using the effective interest method and cash is held at cost.

Financial liabilities such as bonds and loans are held at amortised cost using the effective interest method.

Social Housing Lettings (note 3) Turnover
2023
£
133,797
133,797		 Operating
Costs
2023
£
(117,566)
(117,566)		 Operating
Surplus
2023
£
16,231
16,231

Page 15

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

3a PARTICULARS OF TURNOVER AND OPERATING SURPLUS

Turnover
Operating
Costs
2023
2023
£
£
Social Housing Lettings (note 3b)
133,797
(117,566)
133,797
(117,566)
Turnover
Operating
Costs
2022
2022
£
£
Social Housing Lettings (note 3b)
121,499
(98,031)
121,499
(98,031)
PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS
General needs
Housing
2023
£
Rent receivable net of identifiable service charges and voids
90,706
Service charge income
38,750
Grant amortisation
4,341
Turnover from social housing lettings
133,797
Management
35,311
Services
43,143
Routine maintenance
31,144
Bad Debt Expense
-
Depreciation of housing properties
7,968
Operating costs on social housing lettings
117,566
Operating surplus on social housing lettings
16,231
Void losses
2,608
ACCOMMODATION OWNED, MANAGED AND IN DEVELOPMENT
2023
Social Housing
18		 Operating
Surplus
2023
£
16,231
16,231
Operating
Surplus
2022
£
23,468
23,468
General needs
Housing
2022
£
82,297
34,861
4,341
121,499
28,346
17,752
35,990
7,975
7,968
98,031
23,468
4,461
2022
18

3b PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS

Page 16

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

4 INTEREST RECEIVABLE AND OTHER INCOME

Investment income
Bank deposit interest
5
INTEREST PAYABLE AND SIMILAR CHARGES
Bank charges
6
NET INCOME
Surplus on ordinary activities before taxation is stated after charging :-
Depreciation of housing properties
Auditors' remuneration (excluding VAT) - external audit
The external auditors provided no other services in the year.		 2023
£
2,802
596
3,398
2023
£
3
3
2023
£
7,968
5,265
 2022
£
2,800
104
2,904
2022
£
2
2
2022
£
7,968
5,435

7 TAXATION

The organisation is a registered charity and, by virtue of s.478 Corporation Tax Act 2010, is exempt from Corporation Tax.

8 OFFICERS' AND SENIOR EXECUTIVES' EMOLUMENTS

No emoluments were paid to any officers or senior executives for the year ended 31 December 2023 (2022: nil).

9 EMPLOYEES

There are no employees of the charity as at the 31 December 2023 (2022: Nil).

Page 17

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

10 HOUSING PROPERTIES
HOUSING PROPERTIES
Freehold
Land & Buildings
£
Cost
As at 1st January 2023
719,316
Additions
-
As at 31 December 2023
719,316
Depreciation
As at 1st January 2023
316,327
Charge for the year
7,968
As at 31 December 2023
324,295
Net Book Value
As at 31 December 2022
402,989
As at 31 December 2023
395,021		 Total
£
719,316
-
719,316
316,327
7,968
324,295
402,989
395,021

The cost of housing properties stated above includes land on the east side of Gift Lane, Stratford, being about one-third of an acre and the Almshouse building thereon. These are vested in the Official Custodian for Charities by virtue of the Scheme of the Charity Commissioners dated 28th June 1923 and a conveyance dated 29th January 1932 as affected by the Charities Act 1960 and by an order of the Commissioners dated 13th August 1962.

The land consists of two plots :-

i) Formerly occupied by 2 copyhold cottages devised by the will of Roger Harris dated 19th September 1633, to provide rent free accommodation for poor persons and included in the Charity's accounts subsequently.

ii) The site originally known as 27 Church Street, being 900 sq. feet (approx.), purchased in 1932 for £925.

Page 18

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

11 INVESTMENTS

Cost or valuation
As at 1 January
Cost
Valuation
Additions
Disposals
Revaluation
As at 31 December
Impairment
As at 1 January
Written off
Eliminated on disposals
As at 31 December
Net Book Value
As at 31 December 2023
As at 31 December 2022
The investments comprise the following :-
The Charities Official Investment Fund
Income shares
Accumulation shares		 2023
£
21,609
1,329,926
161,543
1,491,469
-
-
-
-
1,491,469
1,329,926
2023
£
13,101
8,508
21,609		 2022
£
21,609
1,464,490
-
-
(134,565)
1,329,925
-
-
-
-
1,329,925
1,464,490
2022
£
13,101
8,508
21,609

Page 19

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

12 DEBTORS - DUE WITHIN ONE YEAR

2023
£
Rent and service charges receivable
3,022
Less: provision for bad and doubtful debts
(125)
2,897
Other Debtors
13,044
15,941
13
CASH AT BANK AND IN HAND
2023
£
Deposit account
57,239
Current accounts
383,186
440,425
14
CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR		 2022
£
9,241
(7,914)
1,327
27,796
29,123
2022
£
53,845
356,514
410,359
2023 2022
£ £
Deferred capital grant - (note 16) 4,341 4,341
Rent received in advance 5,284 9,623
AccrualsAccruals & Deferred Income 10,422 12,519
Other creditors 67 -
20,114 26,483
15 CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£ £
Deferred capital grant - (note 16) 151,934 156,275
151,934 156,275

Page 20

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

16 DEFERRED CAPITAL GRANT

As at 1 January
Released to Income in the year
As at 31 December
To be amortised in less than one year
To be amortised in more than one year
Total accumulated government grant
The total accumulated government grant and
financial assistance received or receivable at 31 December
17
REVENUE RESERVES
As at 1 January
Net movement in funds
As at 31 December		 2023
£
160,616
(4,341)
156,275
4,341
151,934
156,275
520,920
2023
£
681,323
19,626
700,949		 2022
£
164,957
(4,341)
160,616
4,341
156,275
160,616
520,920
2022
£
654,953
26,370
681,323

18 INVESTMENT REVALUATION RESERVE

INVESTMENT REVALUATION RESERVE
As at 1st January
Unrealised surplus / (deficit) on investments
As at 31 December		 2023
£
1,308,316
161,543
1,469,859		 2022
£
1,442,881
(134,565)
1,308,316

Page 21

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

Notes

19 HOUSING STOCK

The Charity's stock of housing consists of 18 rehabilitated flats at Gift Lane Stratford.

20 CAPITAL COMMITMENTS

There were no capital commitments as at 31 December 2023 (2022: Nil)

21 CONTINGENT LIABILITIES

There are no contingent liabilities as at 31 December 2023 (2022: Nil)

22 MANAGEMENT AGREEMENT

Under a renewed management agreement signed in 2019, L&Q Group is responsible for managing the day to day affairs of the Charity. The management fees payable in the year amounted to £25,062 (2022: £22,558).

23 OPERATING LEASES

There were no operating leases held at 31 December 2023 (2022: nil)

24 RELATED PARTIES

The related party transaction is between L&Q the management company and the Charity. The balanced owing to the Charity at year end is £10,149 (2022: £26,671 was owed to the Charity by L&Q ).

25 FINANCIAL INSTRUMENTS

The Charity's financial instruments may be analysed as follows

Financial Assets
Financial Assets Measured at Fair Value
Investments
Financial Assets Measured at Cost
Cash and cash equivalents
Financial Assets Measured at Amortised Cost
Rent and Service Charge Debtors
Other Debtors
Total Financial Assets
Financial Liabilities
Financial Liabilities Measured at Amortised Cost
Trade Creditors
Other Creditors
Accruals
Total Financial Liabilities		 2023
£
1,491,469
440,425
3,022
13,044
1,947,960
5,284
67
10,422
15,773		 2022
£
1,329,926
410,359
9,241
27,796
1,777,322
9,623
-
12,205
21,828

Page 22

WEST HAM NON-ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2023 Continued

26 Analysis of changes in net debt/(funds)

Short and long term loan liabilities
Total liabilities
Cash and cash equivalents
Total net debt/(funds)		 2022
Cash flows
2023
£
£
£
-
-
-
-
-
-
(410,359)
(30,066)
(440,425)
(410,359)
(30,066)
(440,425)

Page 23