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2021-03-31-accounts

Charity number: 210336

Huggens' College

Trustees' report and financial statements

for the year ended 31 March 2021

Huggens' College

Contents

Page
Reference and administrative details of the charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 9
Independent auditors' report on the financial statements 10 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 35

Huggens' College

Reference and administrative details of the charity, its Trustees and advisers for the year ended 31 March 2021

Trustees

Mr M Balfour, President Mrs J Ashton Mrs M Blenkin Mr E Church (appointed 4 November 2020)

Mrs K Fenwick Mrs J Loudon Mr C Page Mr P Sheldon Mrs C M Sims Mr R Stanton Mrs S Villiers Mr C Warner

Charity registered number

210336

Principal office

6 Cross Green Basildon Essex SS16 5QW

Charity and Finance Manager

Nichodimus Kawadza

Independent auditors

Kreston Reeves LLP Statutory Auditor 37 St Margaret's Street Canterbury Kent CT1 2TU

Bankers

Coutts & Co St Martin's Office 440 Strand London WC2R 0QS

Solicitors

Brachers Somerfield House 59 London Road Maidstone Kent ME16 8JH

Page 1

Huggens' College

Reference and administrative details of the charity, its Trustees and advisers (continued) for the year ended 31 March 2021

Gullands 16 Mill Street Maidstone Kent ME15 6XT

Investment Managers

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET

M & G Securities PO Box 9038 Chelmsford CM99 2XF

BNY Mellon Fund Managers Ltd BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA

Ruffer LLP 80 Victoria Street London SW1E 5JL

Sarasin Investment Funds Ltd Juxton House 100 St Paul's Churchyard London EC4M 8BU

Page 2

Huggens' College

Trustees' report for the year ended 31 March 2021

The Trustees present their annual report together with the audited financial statements of the charity for the 1 April 2020 to 31 March 2021. The Trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in July 2014 and updated in February 2016.

Objectives and activities

a. Policies and objectives

The principal objective of the Charity is to provide public benefit through the provision of almshouse accommodation for retired members of the Church of England, or members of a Church affiliated to Churches together in Britain and Ireland who have passed their sixtieth birthday, are of limited financial resource and are capable of independent living.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.

b. Strategies for achieving objectives

The strategy adopted to meet the objective of the Charity in delivering public benefit includes providing 30 bungalows, housing 34 people, a chapel, a common room and a Chaplain and a Lodgekeeper, who live at the College, to support the residents. The strategy also includes the Trustees charging Collegians maintenance contributions for the use of their accommodation at below rental market rates and instigating a scheme of refurbishment of almshouse accommodation in order to continue to provide comfortable and reasonably priced accommodation.

In addition the Charity allows its facilities to be used by local community groups and other organisations when permitted by Covid-19 restrictions.

Achievements and performance

a. Review of activities

During lockdown Chapel life continued with regular services for Collegians, seated socially distanced, face masks worn, with no singing and restricted movements.

There were a few social events including a study group during Lent held after a service in Chapel. It has not been possible for a Trustee to visit the Collegians each month. Instead, each Trustee has telephoned two or three Collegians regularly to check on their wellbeing.

The College Room remained opened for the Library, with books being refreshed from Kent Library service, and for reading the newspapers delivered twice a week. Anyone in the building had to wear a mask. Hand sanitiser was available. The kitchen area was been locked off during the year restricting any more social activities.

Founders’ Day was remembered outdoors, with prayers, a digital recording of the Founders speech read by the President and music with the Huggens proms.

During the warmer weather musical and exercise events took place outdoors on the College Green.

One fundraising event for Christian Aid week took place when through envelope donations £190 was raised by Collegians.

The Collegians are looking forward to the reopening of the College Room and kitchen and starting some social activities whilst being careful to observe Government rules that are in place.

Page 3

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

Achievements and performance (continued)

b. Investment policy and performance

Following a Charity Commission order in 1971, the Charity invested in a National Association of Almshouses Common Investment Fund (NAACIF) and income generated by this investment is reinvested in accordance with the requirements of the order. On 15 November 2019 this fund merged with the M&G Charity Multi Asset Fund (a new Charity Authorised Investment Fund ‘CAIF’) on a one for one basis. This investment (after allowing for disposals), and other investments held by the Charity, have increased in value over the financial year.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The Trustees have reviewed the reserves of the College. This review encompassed the nature of the major income and expenditure streams and the need to match income and expenditure. The College's principal source of funds is from maintenance contributions from Collegians and investments.

As a result of this review, the Trustees confirmed that, to enable the College to continue to meet its objectives, to operate efficiently and to provide a buffer for both planned and unexpected costs in respect of the College property, an unrestricted general reserve of two years average expenditure should be maintained. A designated maintenance fund should be maintained at no more than the equivalent of five times the Almshouse Association's recommended annual transfer to a Cyclical Maintenance Fund within Greater London.

Total funds held by the charity as at 31 March 2021 were £11,902,492 of which £11,296,890 was unrestricted. General reserves amounted to £555,096. Actual two years average expenditure is £551,742 therefore the current level of reserves is marginally higher than the amount required by the policy. After allowing for funds tied up in designated funds, and excluding the amount held as tangible fixed assets, gave free reserves of £547,595.

The Trustees also concluded that as the College has restricted funds of £531,687, which are represented by specific assets, that can be utilised to meet the costs of major long-term modernisation and repairs, there was no need to establish a separate Extraordinary Repair Fund. The details and purposes of these funds are shown in the financial statements (see note 19).

c. Financial review

The net incoming resources for the year, before net gains/(losses) on investments amounted to £1,801 (2020: incoming £14,852).

During the year the investment property was sold resulting in a net gain of £1,825,214. At the year end the overall market value of the investments have increased resulting in a net gain of £434,051. (2020: loss of £101,726).

The total fund balances at 31 March 2021, amounted to £11,902,492 (2020: £9,641,426).

d. Principal funding

The Charity continues to be reliant upon the income generated from its investments. This together with the maintenance charges generated provides income for the Charity's needs.

Page 4

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

e. Material investments policy

The Charity holds a diversified portfolio of investments which are managed by external fund managers. The value of all investments in the portfolio has, overall, increased during the year.

Structure, governance and management

a. Constitution

Huggens' College was incorporated by Act of Parliament in 1847 and is registered as a Charity with the Charity Commissioners in England and Wales with registration number 210336.

b. Methods of appointment or election of Trustees

The management of the Charity and the appointment of Trustees is the responsibility of the Trustees. Trustees are appointed under the terms of the Rules, Regulations and Scheme of the Charity.

c. Policies adopted for the induction and training of Trustees

New Trustees are inducted into the workings of the Charity, including policies and procedures, via the Charity and Finance Manager with an induction briefing and discussion with existing Trustees.

In addition, new Trustees may shadow an existing Trustee on a monthly College visit when permitted by Covid19 restrictions.

Page 5

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

Structure, governance and management (continued)

d. Pay policy for senior staff

Introduction

This policy sets out the principles upon which the Trustees of Huggens College make decisions about staff salary.

Principles

The following pay principles are applied:

Policy Statement

Huggens College seeks to ensure that its remuneration policy and practices are compatible with effective risk management. This is done by embedding the following principles into its Pay Policy:

This policy aims to attract and retain people with the right mix of skills and experience who share the charity’s values and are prepared to work together as a team.

Page 6

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

Structure, governance and management (continued)

Scope

This policy applies to all employees of Huggens College. It is owned by the Trustees. Its content and any amendments are subject to approval by the Trustees. The policy will be reviewed annually by the Finance Committee.

Benchmarking

Huggens College needs to be able to attract and retain suitable individuals. The need for appropriate levels of remuneration must be taken into account and will be a significant factor for some candidates. A job evaluation scheme would be disproportionate to the size of Huggens College. Therefore should the need for benchmarking occur Huggens College will take into account pay across charities and not for profit organisations in the Kent/Sussex area. It will aim to benchmark its salaries at the median after making allowance for other benefits that are included within a role such as the provision of living accommodation.

Salary process and recommendations for salary awards

The Trustees maintain oversight and control over Huggens College’s salaries to ensure pay levels remain appropriate.

The approach adopted comprises:

Anyone who is subject to formal action arising from poor performance or conduct will not receive a pay increase until their performance is deemed satisfactory by their line manager.

Employee Benefits

Huggens College offers the following employee benefits in addition to salary:

One month at full pay; plus

One month at half pay (if more than SSP); but

No more than one month at full pay and one month at half pay will be paid in a rolling twelve month period;

Page 7

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

Structure, governance and management (continued)

e. Organisational structure and decision making

The Trustees exercise the general control and management of the Charity.

The Trustees have given the Chaplain the authority to act on their behalf, to oversee the spiritual and physical welfare of the Collegians, together with the security of the College.

The Charity and Finance Manager acts as financial controller of the Charity under the guidance of the Finance Committee of the Charity.

f. Risk management

The Trustees continue to assess the major risks to which the Charity is exposed, in particular those related to its operations and finances, and are satisfied that systems and procedures are in place to mitigate their exposure to the major risks. The Trustees maintain a Risk Register that is monitored on a regular basis and reviewed annually by the Trustees.

Plans for future periods

The refurbishment scheme for the College properties and the grounds of the site will continue, for the benefit of the Collegians. During the year two bungalows underwent full refurbishment. The Trustees are also committed to ensuring that all the bungalows are refurbished to a high standard when appropriate to provide excellent accommodation for the Collegians.

The Charity’s investment property was sold during the year. The Trustees are exploring the possibility of using the funds generated to increase the amount of accommodation they can provide.

The Trustees are exploring with the Charity Commission the possibility of widening the Charity’s objects.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, 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 and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (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.

Page 8

Huggens' College

Trustees' report (continued) for the year ended 31 March 2021

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 27 July 2021 and signed on their behalf by:

Mr M Balfour President

Page 9

Huggens' College

Independent auditors' report to the Members of Huggens' College

Opinion

We have audited the financial statements of Huggens' College (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (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 been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Page 10

Huggens' College

Independent auditors' report to the Members of Huggens' College (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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.

Page 11

Huggens' College

Independent auditors' report to the Members of Huggens' College (continued)

Auditors' 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 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 Auditors' 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:

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 12

Huggens' College

Independent auditors' report to the Members of Huggens' College (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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.

Kreston Reeves LLP Statutory Auditor Chartered Accountants

Canterbury

30 July 2021

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 13

Huggens' College

Statement of financial activities for the year ended 31 March 2021

Note
Income and
endowments from:
Donations and legacies
3
Charitable activities
5
Investments
4
Other income
6
Total income and
endowments
Expenditure on:
Charitable activities
7
Total expenditure
Net income before
net gains/(losses)
on investments
Net gains/(losses) on
investments
Net
income/(expenditur
e)
Transfers between
funds
18
Net movement in
funds before other
recognised gains
Other recognised
gains:
Gains on revaluation of
fixed assets
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
73,915
-
73,915		 Restricted
funds
2021
£
-
-
-
-
-
-
-
-
151,725
151,725
(250,000)
(98,275)
-
(98,275)
629,962
(98,275)
531,687		 Unrestricted
funds
2021
£
2,064
206,462
56,191
-
264,717
262,916
262,916
1,801
2,107,540
2,109,341
250,000
2,359,341
-
2,359,341
8,937,549
2,359,341
11,296,890		 Total
funds
2021
£
2,064
206,462
56,191
-
264,717
262,916
262,916
1,801
2,259,265
2,261,066
-
2,261,066
-
2,261,066
9,641,426
2,261,066
11,902,492		 Total
funds
2020
£
5
200,154
105,442
150
305,751
290,899
290,899
14,852
(101,726)
(86,874)
-
(86,874)
300,000
213,126
9,428,300
213,126
9,641,426

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 35 form part of these financial statements.

Page 14

Huggens' College

Balance sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
12
Investments
14
Investment property
13
Current assets
Debtors
15
Funds on deposit
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Endowment funds
18
Restricted funds
18
Unrestricted funds
18
Total funds		 8,949
2,681,351
370,941
3,061,241
(25,667)		 2021
£
6,411,361
2,455,557
-
8,866,918
3,035,574
11,902,492
11,902,492
11,902,492
73,915
531,687
11,296,890
11,902,492		 17,045
-
85,971
103,016
(26,610)		 2020
£
6,343,514
1,621,506
1,600,000
9,565,020
76,406
9,641,426
9,641,426
9,641,426
73,915
629,962
8,937,549
9,641,426

The financial statements were approved and authorised for issue by the Trustees on 27 July 2021 and signed on their behalf by:

Mr M Balfour

The notes on pages 17 to 35 form part of these financial statements.

Page 15

Huggens' College

Statement of cash flows
for the year ended 31 March 2021
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 17 to 35 form part of these financial statements		 2021
£
12,226
(71,119)
250,000
(650,000)
3,425,214
2,954,095
-
2,966,321
85,971
3,052,292		 2020
£
(3,565)
(140,758)
650,000
(500,000)
-
9,242
-
5,677
80,294
85,971

Page 16

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Huggens' College meets the definition of a public benefit entity under FRS 102.

1.2 Going concern

The Charity's main source of income is from its charitable objectives being maintenance payments in respect of the almshouse accommodation.

The Charity has considerable financial resources, a significant level of investments together with general reserves which are significantly in excess of the reserves policy. As a consequence, the Trustees believe that the Charity is well placed to manage risks successfully despite the current economic climate.

After making enquiries, the Trustees have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Whilst the impact of the COVID-19 pandemic has been assessed by the Trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Charity's future activities. However, taking into consideration the Charity's level of reserves, the Trustees believe that the Charity will be able to continue in operational existence for the foreseeable future.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

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Huggens' College

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies (continued)

1.4 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

1.6 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

1.7 Tangible fixed assets and depreciation

Land and buildings are stated at valuation. Professional external valuations are obtained at least every 5 years. No depreciation is included on land.

The Trustees consider that the College property has a residual value which is at least equal to its net book value. As a result the corresponding depreciation would not be material and therefore is not charged in the Statement of Financial Activities.

Tangible fixed assets are stated at cost less depreciation and any provision for impairment.. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

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Huggens' College

Notes to the financial statements for the year ended 31 March 2021

1. Accounting policies (continued)

1.8 Investments

Investments are a form of financial instrument and are initially recognised at their transaction value and subsequently measured at fair value as at the Balance sheet date using the closing quoted market price. The Statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

1.9 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received in advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.13 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.14 Investment properties

Investment properties were included in the balance sheet at fair value in accordance with FRS 102 and are not depreciated.

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Huggens' College

Notes to the financial statements for the year ended 31 March 2021

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

The preparation of the financial statements requires the Trustees to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.

The following are the charity’s key sources of estimation uncertainty:

Investment properties

The charity held investment property with fair value of £1,600,000 at the end of the previous year (see note 13). In order to determine the fair value of investment property the charity engaged independent valuation specialists with experience in the location and nature of the property being valued. They used a valuation technique based on comparable market data. The determined fair value of the investment property is most sensitive to fluctuations in the property market. On 4 September 2020 the investment properties were sold.

Freehold property

The charity has recognised freehold property with a carrying value of £6,403,861 at the 31 March 2021 (see note 12). These assets are stated at their cost. The Trustees consider that the College property has a residual value which is at least equal to its net book value. As a result the corresponding depreciation would not be material and therefore is not charged in the Statement of Financial Activities. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the Trustees consider whether there are any factors such as changes in market conditions that indicate a need to reconsider the estimates used.

3. Income from donations and legacies

Unrestricted
funds
2021
£
Donations
5
Government grants
2,059
2,064
Total 2020
5		 Total
funds
2021
£
5
2,059
2,064
5		 Total
funds
2020
£
5
-
5

Page 20

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

4. Investment income

Unrestricted
funds
2021
£
Rent receivable
34,848
Bank interest
8,189
Dividend income
13,154
56,191
Total 2020
105,442		 Total
funds
2021
£
34,848
8,189
13,154
56,191
105,442		 Total
funds
2020
£
89,000
359
16,083
105,442

5. Income from charitable activities

Unrestricted
funds
2021
£
Collegians maintenance payments
206,462
Contributions to College outings and events
-
206,462
Total 2020
200,154		 Total
funds
2021
£
206,462
-
206,462
200,154		 Total
funds
2020
£
199,460
694
200,154

6. Other incoming resources

Other income
Total 2020		 Unrestricted
funds
2021
£
-
150		 Total
funds
2021
£
-
150		 Total
funds
2020
£
150

Page 21

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Almshouse accommodation
211,751
Outings and events
1,906
Governance
49,259
262,916
Total 2020
290,899		 Total
funds
2021
£
211,751
1,906
49,259
262,916
290,899		 Total
funds
2020
£
239,347
4,139
47,413
290,899

Summary by expenditure type

Almshouse accommodation
Outings and events
Governance
Total 2020		 Staff costs
2021
Depreciation
2021
£
£
60,695
3,271
-
-
31,465
-
92,160
3,271
85,305
3,251		 Other costs
2021
£
147,785
1,906
17,794
167,485
202,343		 Total
funds
2021
£
211,751
1,906
49,259
262,916
290,899		 Total
funds
2020
£
239,347
4,139
47,413
290,899

Page 22

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

8. Analysis of expenditure by activities

Almshouse accommodation
Outings and events
Governance
Total 2020		 Activities
undertaken
directly
2021
£
178,652
1,906
-
180,558
187,591		 Support
costs
2021
£
33,099
-
49,259
82,358
103,308		 Total
funds
2021
£
211,751
1,906
49,259
262,916
290,899		 Total
funds
2020
£
239,347
4,139
47,413
290,899

Page 23

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Wages and salaries
Depreciation
Repairs
Water Rates
Council tax
Electricity
Gas consumption - The College
Maintenance and repairs to equipment
Cleaning expenses
Insurance
Upkeep of grounds
Telephone
Papers and magazines
College outings and events
Maintenance of organ
Age concern Aid Call
Sundry expenses
Weekend duty rota
Total 2020		 Almshouse
accommoda
tion
2021
Outings and
events
2021
£
£
60,695
-
3,271
-
46,195
-
10,441
-
4,780
-
5,205
-
1,424
-
4,105
-
4,333
-
3,936
-
23,659
-
1,494
-
371
-
-
1,906
183
-
1,475
-
6,325
-
760
-
178,652
1,906
183,452
4,139		 Total
funds
2021
£
60,695
3,271
46,195
10,441
4,780
5,205
1,424
4,105
4,333
3,936
23,659
1,494
371
1,906
183
1,475
6,325
760
180,558
187,591		 Total
funds
2020
£
58,393
3,251
43,115
11,481
4,138
5,374
1,650
3,442
2,751
3,844
32,698
948
332
4,139
361
1,225
9,049
1,400
187,591

Page 24

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Clerk's salary
Chiropodists fees
Subscriptions and sundries
Organist fees
Printing, posting and stationery
Advertising
Website expenses
Architects and surveyors
Legal and professional fees (investment
properties)
Bank charges
Chaplain expenses
Clerk's expenses
Trustees' expenses
Legal and professional fees
Outsourced payroll costs
Auditors' remuneration
Auditors' non audit costs
Provision of LPAs to Collegians
Total 2020		 Almshouse
accommoda
tion
2021
£
-
428
2,205
740
1,874
180
331
11,247
14,106
832
32
-
-
-
-
-
-
1,124
33,099
55,895		 Governance
2021
£
31,465
-
-
-
-
-
-
-
-
-
-
810
259
9,841
644
3,660
2,580
-
49,259
47,413		 Total
funds
2021
£
31,465
428
2,205
740
1,874
180
331
11,247
14,106
832
32
810
259
9,841
644
3,660
2,580
1,124
82,358
103,308		 Total
funds
2020
£
26,912
644
2,248
1,140
1,690
1,736
279
12,080
26,337
835
446
383
2,927
10,422
649
3,623
2,497
8,460
103,308

9. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £3,660 (2020 - £3,623), and accountancy services of £2,580 (2020 - £2,497).

Page 25

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

10. Net incoming resources/(resources expended)

This is stated after charging:

2021 2020
£ £
Depreciation of tangible fixed assets
- owned by the charity 3,280 3,251
Auditors' remuneration 3,660 3,623

During the year, no Trustees received any remuneration (2020 £NIL). During the year, no Trustees received any benefits in kind (2020: 8 Trustees - £480). 6 Trustees received reimbursement of expenses amounting to £259 in the current year (2020 – 10 Trustees - £2,117).

11. Staff costs

Staff costs were as follows

Wages and salaries
Employers NI
Employers pension contributions		 2021
£
106,609
4,341
2,136
113,086		 2020
£
100,274
3,883
1,763
105,920

The average monthly number of employees was: 6 (2020: 6).

No employee received remuneration amounting to more than £60,000 in either year.

The total employment benefits including employer pension contributions of the key management personnel were £58,574 (2020: £50,069).

During the year the charity made an ex-gratia payment of £4,500 to D Newlyn, who was previously employed as charity manager.

Page 26

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

12. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 College
Property
£
6,336,021
67,840
-
6,403,861
-
-
-
-
6,403,861
6,336,021		 Plant &
machinery
£
25,152
3,279
(2,507)
25,924
17,659
3,280
(2,515)
18,424
7,500
7,493		 Total
£
6,361,173
71,119
(2,507)
6,429,785
17,659
3,280
(2,515)
18,424
6,411,361
6,343,514

The most recent valuation of the College Property was undertaken as at 31 March 2018 by Strutt and Parker LLP in accordance with the RICS Valuation Standards 8th Edition (the "Red Book"), on an existing use basis.

13. Investment property

At 1 April 2020
Disposals
At 31 March 2021		 Freehold
investment
property
£
1,600,000
(1,600,000)
-

Page 27

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

14. Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 April 2020
629,962
Additions
-
Disposals
(250,000)
Revaluations
151,725
At 31 March 2021
531,687
Net book value
At 31 March 2021
531,687
At 31 March 2020
629,962
.
Investments at market value comprise:
Unlisted investments in the Extraordinary Repair Fund
Other fixed asset investments
Total market value
All the fixed asset investments are held in the UK.
.
Material investments
5,541 M&G Charity Multi Asset Fund accumulation units (2020: 8,437
NAACIF accumulation shares)
25,122 COIF income shares (2020: 25,122 shares)
149,414 Newton Growth & Income Fund shares (2020: 149,414 shares)
577,739 Ruffer Charity Assets Trust accumulation shares (2020: 298,058
shares)
79,872 Sarasin Climate Active accumulation units (2020: Nil)		 Other
investments
£
991,544
650,000
-
282,326
1,923,870
1,923,870
991,544
2021
£
531,687
1,923,870
2,455,557
2021
£
531,687
450,343
266,525
950,612
256,390
2,455,557		 Total
£
1,621,506
650,000
(250,000)
434,051
2,455,557
2,455,557
1,621,506
2020
£
629,962
991,544
1,621,506
2020
£
629,962
373,219
215,231
403,094
-
1,621,506

Page 28

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

15. Debtors

Other debtors
Prepayments and accrued income
Funds on deposit
Funds on deposit
Creditors: Amounts falling due within one year
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Amounts released from previous periods
Deferred income at 31 March 2021		 2021
£
6,702
2,247
8,949
2021
£
2,681,351
2021
£
25,667
-
25,667
2021
£
-
-
-		 2020
£
15,242
1,803
17,045
2020
£
-
2020
£
18,360
8,250
26,610
2020
£
8,250
(8,250)
-

16. Funds on deposit

17. Creditors: Amounts falling due within one year

Page 29

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

18. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Designated
property fund
Designated
maintenance
fund
Capital projects
fund
Hardship fund
WER Advanced
Rent Reserve
Fund
General funds
General Funds
Endowment
funds
Endowment
Fund
Restricted
funds
Extraordinary
repair fund
Total of funds		 Balance at 1
April 2020
£
7,862,106
109,330
411,000
10,000
-
8,392,436
545,113
73,915
629,962
9,641,426		 Income
£
-
-
-
-
-
-
264,717
-
-
264,717		 Expenditure
£
-
-
-
-
-
-
(262,916)
-
-
(262,916)		 Transfers
in/out
£
(1,532,160)
1,670
3,664,000
-
215,848
2,349,358
(2,099,358)
-
(250,000)
-		 Gains/
(Losses)
£
-
-
-
-
-
-
2,107,540
-
151,725
2,259,265		 Balance at
31 March
2021
£
6,329,946
111,000
4,075,000
10,000
215,848
10,741,794
555,096
73,915
531,687
11,902,492

Page 30

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

18. Statement of funds (continued)

Statement of funds - prior year

Designated
funds
Designated
property fund
Designated
maintenance
fund
Capital projects
fund
Hardship fund
General funds
General Funds
Endowment
funds
Endowment
Fund
Restricted
funds
Extraordinary
repair fund
Total of funds		 Balance at
1 April 2019
£
7,421,348
109,550
170,000
10,000
7,710,898
477,238
73,915
1,166,249
9,428,300		 Income
£
-
-
-
-
-
305,751
-
-
-		 Expenditure
£
-
-
-
-
-
(290,899)
-
-
(290,899)		 Transfers
in/out
£
140,758
(220)
241,000
-
381,538
68,462
-
(450,000)
-		 Gains/
(Losses)
£
300,000
-
-
-
300,000
(15,439)
-
(86,287)
198,274		 Balance at
31 March
2020
£
7,862,106
109,330
411,000
10,000
8,392,436
545,113
73,915
629,962
9,641,426

Page 31

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

Transfers between funds

Designated property fund the net transfer of £1,532,160 consists of £1,600,000 transferred to the capital projects fund, being the book value of the commercial property when it was sold, and £67,840 from general funds represents the College Property additions in the year.

Designated maintenance fund the transfer of £1,670 from general funds represents the movement in the recommendations of the Almshouse Association to ensure the fund totals the equivalent of five times the Association’s recommended annual transfer.

Restricted extraordinary repair fund – the transfer of £250,000 relates to the disposal of M&G Charity Multi Asset Fund shares in the year

Designated capital projects fund – the transfer of £3,664,000 consists of £1,600,000 from the designated property fund, being the book value of the commercial property when it was sold, £1,555,214 from general funds being the gain on the sale of that property and a further £508,786 which represents the decision to build the capital projects fund from the free reserves available.

Designated W E Roberts advanced rent reserve fund – the transfer of £215,848 from general funds represents the balance of the three years rent in advance received from W E Roberts when the commercial property was sold to them.

Purpose of funds

Designated Fund - Property fund

The designated property fund is represented by the book value of the College property less the value of the endowment fund.

Designated Fund - Capital projects

This designated fund has been established to provide for capital improvements to the College property including, but not limited to, acquisitions, major refurbishment of existing buildings and construction of new buildings.

Designated Fund - Maintenance fund

This designated fund has been established to provide for cyclical maintenance of the College Property, other than capital improvements. The Trustees have considered the recommendations of the Almshouse Association and have decided that it should be maintained at no more than the equivalent of five times the Association’s recommended annual transfer to a Cyclical Maintenance Fund within Greater London.

Designated Fund - W E Roberts Advanced Rent Reserve

When W E Roberts purchased the charity’s commercial property which they occupied part of the agreed sale price represented three years rent which they would have paid if they had continued to rent the site from the charity. The Trustees decided that this sum should be held in a reserve fund and transferred back to general funds in equal instalments over a three-year period from the date of the sale.

Designated Fund - Hardship

This designated fund has been established in order to assist the collegians with the purchase of significant items, such as replacement of appliances. It is the charity’s intention to ensure a transfer is made to the fund to give a carrying value of £10,000.

Endowment Fund

The endowment fund represents the original historic cost of the College property which is held for the benefit of the charity.

Restricted Fund - Extraordinary repair fund

The restricted fund relates to the M&G Charity Multi Asset Fund units held by the charity as a result of a Court Order of the Official Custodian. The restriction placed on this fund is that the associated capital value of the shares is to only be used for capital improvements to the College property.

Page 32

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

19. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Endowment
funds
Restricted funds		 Balance at 1
April 2020
£
8,392,436
545,113
73,915
629,962
9,641,426		 Income
£
-
264,717
-
-
264,717
Income
£
-
305,751
-
-
305,751		 Expenditure
£
-
(262,916)
-
-
(262,916)
Expenditure
£
-
(290,899)
-
-
(290,899)		 Transfers
in/out
£
2,349,358
(2,099,358)
-
(250,000)
-
Transfers
in/out
£
381,538
68,462
-
(450,000)
-		 Gains/
(Losses)
£
-
2,107,540
-
151,725
2,259,265
Gains/
(Losses)
£
300,000
(15,439)
-
(86,287)
198,274		 Balance at
31 March
2021
£
10,741,794
555,096
73,915
531,687
11,902,492
Balance at
31 March
2020
£
8,392,436
545,113
73,915
629,962
Summary of funds - prior year
Designated
funds
General funds
Endowment
funds
Restricted funds		 Balance at
1 April 2019
£
7,710,898
477,238
73,915
1,166,249
9,428,300
9,641,426

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Endowment
funds
2021
£
73,915
-
-
-
73,915		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
6,337,446
531,687
1,923,870
-
3,061,241
-
(25,667)
531,687
11,296,890		 Total
funds
2021
£
6,411,361
2,455,557
3,061,241
(25,667)
11,902,492

Page 33

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total		 Endowment
funds
2020
£
73,915
-
-
-
-
73,915		 Restricted
funds
2020
£
-
629,962
-
-
-
629,962		 Unrestricted
funds
2020
£
6,269,599
991,544
1,600,000
103,016
(26,610)
8,937,549		 Total
funds
2020
£
6,343,514
1,621,506
1,600,000
103,016
(26,610)
9,641,426

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Loss/(profit) on the sale of fixed assets
Decrease in debtors
Decrease in creditors
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Funds on deposit
Total cash and cash equivalents		 2021
£
2,261,066
3,280
(2,259,265)
(8)
8,096
(943)
12,226
2021
£
370,941
2,681,351
3,052,292		 2020
£
(86,874)
3,251
101,726
-
1,532
(23,200)
(3,565)
2020
£
85,971
-
85,971

22. Analysis of cash and cash equivalents

Page 34

Huggens' College

Notes to the financial statements for the year ended 31 March 2021

23. Analysis of changes in net debt

Cash at bank and in hand
Funds on deposit		 At 1 April
2020
£
85,971
-
85,971		 Cash flows
£
284,970
2,681,351
2,966,321		 At 31 March
2021
£
370,941
2,681,351
3,052,292

24. Related party transactions

During the year the charity paid £13,766 (2020 - £2,484) to Warner Solicitors, where Mr C Warner, Trustee, is a practising solicitor.

Page 35