## **Lord Kitchener Memorial Homes Trust** 

# **For the year ended 31 March 2024** 

**Registered Number   209751** 

Registered Number   209751 



## **Lord Kitchener Memorial Homes Trust** 

## **Directors’ Report and Account for the Year Ended 31 March 2024** 

## **Page Contents** 

- 1 Report of the trustee 5 Statement of trustee responsibilities 6 Independent auditor’s report 10 Statement of financial activities 11 Balance sheet 12 Statement of cash flows 13 - 19 Notes to the financial statements 

Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Report of the trustee for the year ending 31 March 2024** 

The Trustee of **Lord Kitchener Memorial Homes Trust** presents the annual report and audited accounts for the year ended 31 March 2024. 

## **Reference and administration details** 

Charity registered number: 

209751 

Registered Office mhs homes, Broadside, Leviathan Way, Chatham, Kent ME4 4LL 

Chair Ashley Hook 

Trustee Name mhs homes limited 

Bankers National Westminster Bank Plc., 148 High Street, Chatham, Kent ME4 4DB 

Solicitors Trowers and Hamlins LLP, 3 Bunhill Row, London, EC1Y 8YZ 

Auditors BDO LLP, 31 Chertsey Street, Guildford, Surrey, Gu1 4HD. 

The present-day Trust is administered by **mhs homes limited** (mhs homes) who were appointed as Corporate Trustee in June 2009. **mhs homes** is the corporate trustee and has delegated authority to the three executive directors to administer the charity. 

The executive directors of **mhs homes** are: 

Ashley Hook Bruce Shelmerdine Amy Cheswick Gemma Hancock 

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Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Report of the trustee for the year ended 31 March 2024 (continued)** 

## **Legal and administrative details** 

At a public meeting held at the Town Hall, Chatham on 16 October 1916 to honour the memory of Lord Kitchener of Khartoum, it was agreed to open a public fund and use the monies raised to erect and endow homes for occupation by persons of the Borough who served in His Majesty's Forces.  Subsequently the War Department agreed to lease an area of land at Fort Pitt Hill, Chatham (on a lease of 999 years) and the homes were erected on this site in 1923. 

The Lord Kitchener Memorial Homes Trust was registered with the Charity Commission (registration number 209751) on 1 January 1961 as a Charity whose purpose is to provide accommodation for ex-Servicemen of the Borough of Chatham. The Charity's governing document is the Trust Deed dated 23 March 1923, as amended by the Charity Commission Scheme dated 11 June 1996 (which widened the eligibility criteria for residence at the Homes). The Trust de-registered from the Tenants Service Authority on 8 July 2009. The present-day Trust is administered by **mhs homes limited ( mhs homes) ,** who were appointed as Trustee in June 2009. 

## **Appointment of trustee** 

**mhs homes** were appointed as Corporate Trustee in June 2009. The appointment of **mhs homes** was carried out following full consultation with the Charity Commission and the residents. 

The current strategy is not to change the trustee position, with **mhs homes** planning to remain as corporate trustee for the foreseeable future. In the unlikely event of new trustee being appointed there is an established selection and appointment system used by **mhs homes** based on objective criteria for recruiting new members to the Board of Trustees. The trustee affirms the benefits of an open system of appointment using set criteria to assess skills, experience and competences, required of suitable candidates. Any induction and training process entails the deployment and application of procedures resourced by **mhs homes** , including visits to projects and meetings with staff. 

## **The organisational structure** 

The charity is managed on a day to day basis by **mhs homes** meaning that the charity benefits from the support and professionalism of a substantial provider of social housing.  Risks are identified through the risk management process of **mhs homes** though due to the support provided by **mhs homes,** none are considered significant. 

## **Statement of charitable benefit** 

The primary purpose of the charity is to provide almshouse accommodation for people who are in need and who live (or have lived) in the borough of Medway, with preference given to those who have served in the armed forces (Including the merchant navy engaged in duties for the Royal Navy) and their dependents. **mhs homes** provides Housing Management services that include helping people to move into their new homes, providing a platform for people to enhance their life chances. Staff provide tenancy management and advice services in areas including tackling anti-social behaviour, neighbour issues, repairing and improving properties. An adaptations service is also provided to enable people with disabilities to get around their own homes and access the community. 

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**Lord Kitchener Memorial Homes Trust** 

## **Report of the trustee for the year ended 31 March 2024 (continued)** 

## **Statement of charitable benefit (continued)** 

Furthermore, the objects of the charity are such charitable purposes for the benefit of the residents as the trustee decides. 

The charity meets the objectives by providing 6 properties for accommodation with rent levels significantly below market rents. Properties are let in accordance with the objectives noted above. 

## **Fundraising statement** 

Although we do not undertake fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable would be presented in our accounts as donations. 

In relation to the above we confirm that if funds were held, they would be managed internally, without involvement of third parties. The day to day management of all income generation is delegated to the leadership team, who are accountable to the trustees. The charity has no undertaking to be bound by any regulatory scheme. 

We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times as we do not approach individuals for funds we do not consider it necessary to design specific procedures to monitor such activities. 

## **Risk management** 

Aided by the Directors’ Team of the parent organisation, the Trustee has examined the major strategic, business and operational risks faced by the charity. Accordingly, the Trustee confirms that effective systems operate to minimise the consequences posed by risk, but at the same time is aware that it is not possible to entirely eliminate all factors of risk. All risks have been reviewed during the year. 

## **Future plans** 

The future plans of Lord Kitchener are to maintain and let the current properties owned. There are no plans for development of new units. 

## **Reserves policy** 

The target level of reserves is to ensure that sufficient funds are available to meet future repairs costs required to ensure the properties are well maintained.  Refer to Note 8 for additional details. 

## **Achievement, performance and financial review** 

Net current asset and investments are sufficient to cover over three years of rental income, and there is also the support of mhs homes that can be called on, hence there are sufficient resources to continue even in the most extreme of circumstances. The level of investments and reserves held will be reviewed periodically to ensure whether best value is being obtained. Otherwise the plans of the charity are to ensure that the properties continue to be suitably maintained and let. 

## **Report of the trustee for the year ended 31 March 2024 (continued)** 

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**Lord Kitchener Memorial Homes Trust** 

## **Achievement, performance and financial review (continued)** 

The key features of the financial year were as follows: 

1. The Trust had a surplus of income over expenditure on activities for the year amounting to £25,470 (2023: surplus of £13,832). 

2. Rental income was £44,809 for the last 12 months (2023: £32,752). 

3. The Trustee has established a regular maintenance programme for the homes and set aside specific maintenance funds to reflect this commitment. 

4. The investment portfolio has been constituted with the objective of protecting the interests of future residents as well as those of the present and thus the strategy is to endeavour to protect the value of both the capital and income of the Charity.  The market value is structured between; cash 5% (2023:5%); bonds 18% (2023:19%); equities 77% (2023:76%). 

5. The total market value of all the Trust's Investments have increased (9%) to £97,210 (2023: £88,960). 

6. The Trust has not acquired or discontinued any fundamental activities during the last two financial years nor has it any recognised gains or losses other than those included in the statement of financial activities. 

BDO LLP have expressed its willingness to continue in office. 

By Order of the Board 


**Ashley Hook** 13 July 2024 

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Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Statement of Trustee Responsibilities in Respect of the Report of the Trustee and the Financial Statements** 

The charity trustee is responsible for preparing the trustee’s annual report and financial statements in accordance with applicable law and regulations. 

Charity law requires the charity trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee 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 the financial statements, the trustee is required to: 

- select suitable accounting policies and then apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed subject to any 

- material parties disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to 

- presume that the charity will continue in business. 

The Trustee is 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 and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed.  They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Statement as to disclosure to our auditor** 

In so far as the trustee is aware at the time of approving the trustee’s annual report: 

- there is no relevant information, being information needed by the auditor in connection with preparing their report, of the charity’s auditor is unaware; and 

- the trustees, having made enquiries of fellow directors and the charity’s auditors that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

By order of the board of trustees 

**Ashley Hook** Chair 13 July 2023 

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**Lord Kitchener Memorial Homes Trust** 

## **Independent Auditor’s Report to the Trustee of Lord Kitchener Memorial Homes Trust** 

## **Opinion on the financial statements** 

In our opinion, the financial statements: 

- give a true and fair view of the state of the Charity’s affairs as at 31 March 2024 and of the incoming resources and application of resources 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. 

We have audited the financial statements of Lord Kitchener Memorial Homes Trust (“the Charity”) for the year ended 31 March 2024, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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). 

## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## _Independence_ 

We remain independent of the Charity in accordance with the ethical requirements 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. 

## **Conclusions related 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 Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. 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 

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**Lord Kitchener Memorial Homes Trust** 

## **Independent Auditor’s Report to the Trustee of Lord Kitchener Memorial Homes Trust (continued)** 

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 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. 

## **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 requires us to report to you if, in our opinion; 

- the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or 

- adequate accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; 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 Trustee Responsibilities in respect of the Report of the Trustee and the Financial Statements, 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

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. 

## _Extent to which the audit was capable of detecting irregularities, including fraud_ 

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: 

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**Lord Kitchener Memorial Homes Trust** 

## **Independent Auditor’s Report to the Trustee of Lord Kitchener Memorial Homes Trust (continued)** 

Based on: 

- Our understanding of the Charity and the sector in which it operates; 

- Discussion with management and those charged with governance; and 

- Obtaining an understanding of the Charity’s policies and procedures regarding compliance with laws and regulations 

we considered the significant laws and regulations to be UK GAAP and the Charities Act 2011. 

The Charity is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be Data Protection and Health and Safety Legislation. 

Our procedures in respect of the above included: 

- Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations; 

- Review of correspondence with regulatory and tax authorities for any instances of noncompliance with laws and regulations; and 

- Review of financial statement disclosures and agreeing to supporting documentation. 

## _Fraud_ 

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included: 

- Enquiry with management, those charged with governance and the Finance, Risk & Audit Committee regarding any known or suspected instances of fraud; 

- Obtaining an understanding of the Charity’s policies and procedures relating to: `o` Detecting and responding to the risks of fraud; and `o` Internal controls established to mitigate risks related to fraud. 

- Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud; 

- Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and 

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. 

Based on our risk assessment, we considered the areas most susceptible to fraud to be management overrider through the posting of journals and judgements and estimates. 

Our procedures in respect of the above included: 

- Testing a sample of journal entries throughout the year, which met a defined risk criterion, and a random sample of journals in the year, by agreeing to supporting documentation. 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 

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**Lord Kitchener Memorial Homes Trust** 

## **Independent Auditor’s Report to the Trustee of Lord Kitchener Memorial Homes Trust (continued)** 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. 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. 


BDO LLP, statutory auditor Guildford, UK 

22 August 2024 Date: 

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 

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## **Lord Kitchener Memorial Homes Trust** 

## **Statement of Financial Activities For the year ended 31[st] March 2024** 

|Note|**Year to 31 March 2024**<br>**Unrestricted**<br>**Funds**<br>**£**<br>**Total**<br>**Fund**<br>**£**|**Year to 31 March 2024**<br>**Unrestricted**<br>**Funds**<br>**£**<br>**Total**<br>**Fund**<br>**£**|**31 March**<br>**2023**<br>**Total Fund**<br>**£**|
|---|---|---|---|
|**Income**<br>Rental Income<br>Interest Receivable & Other Income<br>Investment Income<br>**Total Income**<br>**Expenditure:**<br>Governance Costs<br>3<br>Property Costs (inc depreciation)<br>3<br>**Total Expenditure**<br>**Net income before recognised**<br>**gains and losses**<br>**Profit/(Loss) on Fixed Asset**<br>**Investments**<br>5<br>**Net movement in funds for the**<br>**year**<br>**Total funds brought forward**<br>**Total funds carried forward**|**44,809**<br>**285**<br>**1**<br>**45,095**<br>**3,741**<br>**15,884**<br>**19,625**<br>**25,470**<br>**8,120**<br>**33,590**<br>**441,933**<br>**475,523**|**44,809**<br>**285**<br>**1**<br>**45,095**<br>**3,741**<br>**15,884**<br>**19,625**<br>**25,470**<br>**8,120**<br>**33,590**<br>**441,933**<br>**475,523**|32,752<br>216<br>1|
||||32,969|
||||3,432<br>15,705|
||||19,137|
||||13,832<br>(1,920)|
||||11,912<br>430,021|
||||441,933|



The notes on pages 13 to 19 form part of these financial statements. 

All income and expenditure is derived from continuing activities. 

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## **Lord Kitchener Memorial Homes Trust** 

## **Balance Sheet as at 31 March 2024** 

|**Note**||**31**<br>**March**<br>**2024**<br>**£**||**31 March**<br>**2023**<br>**£**|
|---|---|---|---|---|
|**Fixed Assets**<br>**Tangible Assets**<br>Housing Properties<br>4<br>**Investments**<br>Listed Investments<br>5<br>**Current Assets**<br>Debtors<br>6<br>Cash at Bank<br>**Current Liabilities**<br>Amounts falling due<br>within one year<br>7<br>**Net Current Assets**<br>**Total Assets Less**<br>**Current Liabilities**<br>**Net assets**<br>**Funds of Charity**<br>Public Subscriptions<br>Revenue Reserves<br>Designated Funds<br>8<br>**Total Charity Funds**|**118,244**<br>**4,194**<br>**122,437**<br>**(3,741)**|<br>**259,616**<br>**97,210**<br>**356,826**<br>**118,697**<br>**475,523**<br>**475,523**<br>**22,298**<br>**369,902**<br>**83,323**<br>**475,523**|90,787<br>4,038<br>94,825<br>(6,147)|264,295<br>88,960|
|||||353,255<br>88,678|
|||||441,933|
|||||441,933|
|||||22,298<br>344,110<br>75,525|
|||||441,933|



These financial statements were approved and authorised for issue by the Trustee and signed on their behalf on 13 July 2024 by Bruce Shelmerdine. 


Trustee 

The notes on pages 13 to 19 form part of these financial statements. 

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## **Lord Kitchener Memorial Homes Trust** 

## **Statement of cash flows for the year ended 31 March 2024** 

|||**2024**|**2023**|
|---|---|---|---|
||Note|**£**|**£**|
|**Cash flows from operating activities**||||
|**Net income before recognised gains and losses**<br>**for the financial year**||**25,470**|13,832|
|Depreciation of fixed assets – housing properties|4|**4,679**|4,679|
|Increase in debtors|6|**(27,457)**|(21,382)|
|(Decrease)/Increase in creditors|7|**(2,406)**|3,088|
|Adjustment for interest and investment income<br>received||**(286)**|(217)|
|**Cash from operations**||||
|Taxation paid||**-**|-|
|**Net cash generated from operating activities**||**-**|-|
|**Cash flows from investing activities**||||
|Purchase of investments|5|**(130)**|(42)|
|Interest and investment income received||**285**|216|
|**Total Cash Flows from Investing Activities**||**155**|174|
|**Net increase in cash and cash equivalents**||**155**|174|
|Cash and cash equivalents at beginning of year||**4,038**|3,864|
|**Cash and cash equivalents at end of year**||**4,194**|4,038|



The notes on pages 13 to 20 form part of these financial statements. 

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**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements** 

## **1. Accounting Policies** 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 

## **Basis of Preparation** 

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), **Lord Kitchener Memorial Homes Trust** meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historic cost or value unless otherwise stated in the relevant accounting policy notes. 

## **Preparation of the accounts on a going concern basis** 

The trust reported a net increase in cash and cash equivalents in the year of £155 (2023: £174) giving a total of £4,194 (2023: £4,038) as at 31 March 2024. 

The board reviewed the Trust’s forecasts for the period up to July 2024 and were content that these plans were affordable and that the accounts should be prepared on a going concern basis. 

Given the strength of the balance sheet, rent collection and maintenance spend the board believe that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the Trust’s ability to continue as a going concern. The board, therefore, consider it appropriate for the accounts to be prepared on a going concern basis. 

## **Income** 

All income is accounted for when the trust is legally entitled to the income and the amount can be quantified with reasonable accuracy. Investment income consists of bank interest and investment income. 

Rental income is generated by the six homes, which provide accommodation for occupation by persons of the Borough who served in Her Majesty's Forces. 

## **Fund accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the Trustee has decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects to be undertaken by the charity. 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: 

• Expenditure on charitable activities includes property and other costs undertaken to further the purposes of the charity and their associated support costs. 

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**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **1. Accounting Policies (continued)** 

## **Fixed Assets – Buildings** 

Housing Properties are stated at cost less accumulated depreciation. The accounting policy calculates depreciation on a component accounting basis. This means that depreciation is charged based on the useful life of each component within its housing properties as follows: - 

Structure 65 years Kitchens 20 years Bathroom 30 years Boiler Replacement 15 years Electrics 30 years Roof 50 years Windows 40 years 

## **Impairment** 

Assets are reviewed for impairment if there is an indication that impairment may have occurred. Assessing impairment requires the use of estimation techniques. In making this assessment, the Trustee considers publicly available information, external valuations and internal forecasts on future activity. 

## **Debtors** 

Trade and other debtors are recognised at the settlement amount. 

## **Creditors** 

Creditors are recognised where the Trust 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 are recognised at their settlement amount after allowing for any discounts due. 

## **Investments** 

Investments are stated at market value (note 5). A notional dividend is received and reinvested on the Shares holding and this is reflected in the book value and through the income and expenditure account. The statement of financial activities shows net investment gains and losses arising from revaluation. 

## **Social Housing Grant** 

Where developments have been financed wholly or partly by social housing grant the amount of grant received has been included as income and recognised in turnover when it becomes receivable. 

Income from capital grants are recognised when the conditions of the grant are met. 

The Trust has not directly benefited from any other forms of government assistance. 

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**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **1. Accounting Policies (continued)** 

## **Expenditure** 

All expenditure is accounted for on an accrual basis. 

## **Governance costs** 

This covers external audit fees. 

## **Taxation** 

Lord Kitchener Memorial Homes Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **2. Judgements in applying accounting policies and key sources of estimation uncertainty** 

In preparing these financial statements, the key judgements have been made in respect of the following: 

• whether there are indicators of impairment of the Trust’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. The trustees have considered the measurement basis to determine the recoverable amount of assets where there are indicators of impairment based on EUV-SH or depreciated replacement cost. The trustees have also considered impairment based on their assumptions to define cash or asset generating units. 

• the categorisation of housing properties as investment properties or property, plant and equipment based on the use of the asset. 

Other key sources of estimation uncertainty: 

- Tangible fixed assets (see note 4): 

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.  Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components. 

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**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **3. Resources expended** 

The resources expended fall into the following categories. 

||**Property**||**2024**|**2023**|
|---|---|---|---|---|
||**related**|**Support**|**Total**|**Total**|
||**£**|**£**|**£**|**£**|
|**Charitable activities:**|||||
|Governance Costs|-|3,741|**3,741**|3,432|
|Depreciation|4,679|-|**4,679**|4,679|
|Property Costs|11,205|-|**11,205**|11,026|
|Interest costs|-|-|**-**|-|
|**Total**|15,884|3,741|**19,625**|19,137|



The trustee received no remuneration in respect of services to the Charity in the current or prior year.  None of the trustees were reimbursed for out of pocket expenses (2023: nil). Governance costs includes £3,741 (2023 - £3,432) in relation to audit fees. 

## **4.      Tangible fixed assets – buildings** 

|**Cost**|£|
|---|---|
|**As at 1 April 2023**|**322,319**|
|**Depreciation**|£|
|At 1 April 2023|58,024|
|Charge for the year|4,679|
|**As at 31 March 2024**|**62,703**|
|**Net book value as**||
|**At 31 March 2024**|**259,616**|
|**At 31 March 2023**|**257,472**|



16 

Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **5. Investments** 

|**Market value as 1 April 2023**<br>**Add:**Income reinvested<br>**Plus:**Net investment profits in the year<br>**Market value as 31 March 2024**<br>**Cost as at 31 March 2024**|**£**<br>88,960<br>130<br>8,120|
|---|---|
||**97,210**|
|||
||**22,614**|



|**Represented By:**|**2024**|**2024**|**2023**|**2023**|
|---|---|---|---|---|
|**Holding**<br>**Listed Investments**|**Cost**<br>**£**|**Market**<br>**Value**<br>**£**|**Cost**<br>**£**|**Market**<br>**Value**<br>**£**|
|164.29Charinco Accumulation<br>Shares 4437p per share<br>1485.95Charishare Income<br>Shares 533p per share<br>263.85COIF Accumulation<br>Shares 11922p per share<br>4603.48<br>COIF Fixed Interest<br>Income Shares 138.60p<br>per share<br>751.00NAACIF Income Shares<br>80p per share<br> **Other Investments**:<br>n/aCOIF Charities Deposit<br>Fund<br>n/aNational Savings<br>Investment (CMF)|**6,560**<br>**3,528**<br>**2,030**<br>**5,533**<br>**307**<br>**2,433**<br>**2,223**<br>**22,614**|**10,838**<br>**7,543**<br>**67,827**<br>**5,664**<br>**682**<br>**2,433**<br>**2,223**<br>**97,210**|6,560<br>3,528<br>2,030<br>5,533<br>307<br>2,320<br>2,207<br>22,485|10,531<br>7,343<br>60,467<br>5,421<br>671<br>2,320<br>2,207|
|||||88,960|



17 

Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **5. Investments (continued)** 

The Lord Kitchener Memorial Homes investment portfolio consists of cash in National Savings Investment Accounts and shares in Common Investment Funds which provide a cost effective method of investing in the fixed interest and equity markets. 

||||||||
|---|---|---|---|---|---|---|
|**Fund Manager**||**Cash**<br>**%**|**Bonds**<br>**%**||||
|Charinco Accumulation Shares<br>Black Rock<br>-<br>Charishare Income Shares<br>Black Rock<br>-<br>COIF Accumulation Shares<br>CCLA Investment Management<br>-<br>COIF Charities Deposit Fund<br>CCLA Investment Management<br>2.50<br>COIF Fixed Interest Income<br>Shares<br>CCLA Investment Management<br>-<br>NAACIF Income Shares<br>M&G Investment Management<br>-<br>National Savings<br>Investment<br>n/a<br>2.29<br>4.79<br>**6.**<br>**Debtors**<br>**2024**<br>**£**<br>**£**<br>Amounts owed by mhs homes Limited<br>**117,705**<br>Rent arrears<br>**539**<br>**118,244**<br>**7.**<br>**Creditors: amounts falling due within one year**<br>**2024**<br>**£**<br>Accruals<br>**3,741**<br>Other Creditors<br>**-**<br>**3,741**|||11.15<br>-<br>-<br>-<br>5.82<br>0.70<br>-<br>17.68<br> <br>||||
||||||||
||||||||
||||||||
||**3,741**|||||6,147|



18 

Registered Number   209751 



**Lord Kitchener Memorial Homes Trust** 

## **Notes to the Financial Statements (continued)** 

## **8. Designated funds** 

The defined categories of repair funds reflect the Trust's liability to maintain its property in accordance with a planned programme of maintenance. The target level of reserves is that to maintain sufficient funds are available to meet the future planned and major repairs required for the upkeep of the properties. 

• Reserves to meet major structural repairs and improvements have been provided for through the creation of an extraordinary repairs fund which has a balance of £78,666 (2023: £70,998). 

• External and internal redecoration being estimated to take place every 5-7 years, the cyclical maintenance fund was created to meet such costs in any year and now has a balance of £2,224 (2023: £2,207). 

• A routine maintenance fund exists to cover normal maintenance in excess of budgeted expenditure for the whole year and amounts to £2,434 (2023: £2,320). 

The movements of the repair funds reconcile as follows: 

||**Extra**<br>**Ordinary**<br>**Repair Fund**<br>**£**<br>**Cyclical**<br>**Maintenance**<br>**Fund**<br>**£**<br>**Routine**<br>**Maintenance**<br>**Fund**<br>**£**<br>**Designated**<br>**Total**<br>**£**|
|---|---|
|**Balance as at 1 April 2023**<br>Accumulated Income<br>Net investment profits<br>**Balance as at 31 March 2024**<br>**Represented by:**<br>Charinco Accumulation Shares<br>COIF Accumulation Shares<br>COIF Charities Deposit Fund<br>National Savings Investment|70,998<br>2,207<br>2,320<br>**75,525**<br>(452)<br>17<br>114<br>**(322)**<br>8,120<br>-<br>-<br>**8,120**|
||78,666<br>2,224<br>2,434<br>**83,323**|
||10,839<br>-<br>-<br>**10,839**<br>67,827<br>-<br>-<br>**67,827**<br>-<br>-<br>2,434<br>**2,434**<br>-<br>2,224<br>-<br>**2,223**|
||78,666<br>2,224<br>2,434<br>**83,323**|



The level of reserves is to ensure that sufficient funds are available to meet future repairs costs required to ensure the properties are well maintained. 

## **9. Related Party Transactions** 

The ultimate controlling party of the group is **mhs homes limited** – a registered charity incorporated under CA2006 registered  in England and Wales, whose accounts are available from the company’s registered office at Broadside, Leviathan Way, Chatham, Kent ME4 4LL. 

19 

Registered Number   209751