Sandbach Almshouse Charity
Trustees' Report and Financial Statements for the year ended 31 December 2022
Charity Registration No. 211106
Sandbach Almshouse Charity
Contents
| Page | |
|---|---|
| Trustees' Report | 1 - 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Statement of Cash Flows | 7 |
| Notes to the Financial Statements | 8-14 |
Sandbach Almshouse Charity
Legal and Administrative Information
| Chairperson | Mrs I M Mackenzie |
|---|---|
| Other Trustees | Mr S Hollinshead |
| Mrs P Barnett | |
| Mrs P Minshull | |
| Mr E Lea | |
| Mrs P Cotton | |
| Mr R Hovey | |
| Mrs E Nevitt | |
| Mrs S Broad | |
| Mr GP Jones | |
| Mr T Wheatcroft | |
| Clerk to the Trustees | Mrs N Clark |
| Charity Number | 211106 |
| Address of Charity | The Gables |
| 20 Crewe Road | |
| Sandbach | |
| Cheshire | |
| CW11 4NE | |
| Independent Examiner | Dean Statham |
| 29 King Street | |
| Newcastle-Under-Lyme | |
| Staffordshire | |
| ST5 1ER | |
| Bankers | The Royal Bank of Scotland |
| 2 Bradwell Road | |
| Sandbach | |
| CW11 1WB |
Sandbach Almshouse Charity
1
Trustees' Report for the year ended 31 December 2022
Introduction
The Trustees present their report and the unaudited financial statements for the year ended 31 December 2022.
Objectives and Activities
The purpose of the Charity is to provide rented accommodation for the older persons of the Ancient Parish of Sandbach.
The Trustees confirm they have referred to guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives.
Trustees' Responsibilities
The Statement of Recommended Practice, "Accounting and Reporting by Charities" and the Charity's Constitution require the Trustees to make available an Annual Report for each financial year, showing a true and fair view of the financial transactions of Sandbach Almshouse Charity during the financial year and of the disposition at the end of the financial year, of the assets and liabilities.
In preparing the financial statements, the Trustees are required to:
-
select suitable accounting policies and apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies.
The Trustees under Trust Law are responsible for ensuring proper accounting records are kept which disclose, with reasonable accuracy at any one time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Trust Deed dated 4th August 1967 and the Charities Act 2011. 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.
Sandbach Almshouse Charity
2
Trustees' Report for the year ended 31 December 2022
Achievements and Performance
The Charity provides 29 properties (consisting of flats and houses) for occupation. A resident warden is employed to look after the welfare of the occupiers.
Financial Review
During the year the Charity received total income of £111,354 and expended £112,008 on charitable activities resulting in net expenditure for the year of £654.
This figure when adjusted for unrealised losses on investments held of £44,816 has resulted in a negative movement in funds for the year of £45,470.
Investments in Official Charities Funds were valued at £440,998 and further investment is made annually, in order to provide a fund for any major improvements and maintenance work on the properties that may be required in the future.
Structure, Governance and Management
Sandbach Almshouse Charity, The Gables, 20 Crewe Road, Sandbach, Cheshire, CW11 4NE is registered with the Charity Commission (No 211106).
The Charity is constituted and governed by a Trust Deed dated 4th August 1967.
The Charity is managed by a committee of 13 members, 8 nominated members and 5 co-optative members who are elected by the other Trustees.
Management of the Charity's funds was delegated to the Clerk of the Trustees, Mr A Roberts. Investment by the Clerk is in accordance with guidelines prescribed by the Trustees. The clerk's role has since been taken over by Mrs N Clark for the 2023 financial year.
The Clerk deals with the day to day running of the properties. Trustees meetings are usually held four times per year to deal with major issues, however for the current and prior year, the meetings were held off due to the Covid-19 pandemic. The meetings will be resumed.
Recruitment
Eight Trustees are nominated By Town and Parish Councils within the ancient Parish of Sandbach.
Five Trustees are co-opted from within the ancient Parish of Sandbach.
Sandbach Almshouse Charity
3
Trustees' Report for the year ended 31 December 2022
Reference and Administrative Details
Sandbach Almshouse Charity, The Gables, 20 Crewe Road, Sandbach, Cheshire, CW11 4NE is registered with the Charity Commission (No 211106).
The Charity was administered by the following members during the year:
Chairperson Mrs I M Mackenzie Vice Chairperson Mr D Robinson Clerk to the Trustees Mrs N Clark Trustees Mr S Hollinshead Mrs P Barnett Mrs P Minshull Mr E Lea Mrs P Cotton Mr R Hovey Mrs P Eaton Mrs K Flavell Mr GP Jones
The Charity is served by Royal Bank of Scotland PLC in Sandbach and Dean Statham Chartered Accountants in Newcastle-Under-Lyme as Independent Examiner.
On behalf of the board of trustees
…………………………………… (Signature) …………………………………… (Name) …………………………………… (Date)
Sandbach Almshouse Charity
4
Independent Examiners Report to the Trustees
We report to the Trustees on our examination of the accounts of the Charity for the year ended 31 December 2022, which are set out on pages 5 to 14.
Responsibilities and basis of report
As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirement of the Charities Act 2011 ('the Act').
We report in respect of our examination of the charity's accounts carried out under section 145 of the Act and in carrying out our examination we have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiners statement
We have completed our examination. We can confirm that no material matters have come to our attention in connection with the examination giving us cause to believe that in any material respect:
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Accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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The accounts do not accord with those records; or
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The accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
We have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
…........................................... Dean Statham Chartered Accountant 29 King Street Newcastle-Under-Lyme Staffordshire ST5 1ER
Dated ...........................
5
Sandbach Almshouse Charity
Statement of Financial Activities for the year ended 31 December 2022
| Unrestricted Note Funds £ Income Earned from charitable activities 2 110,943 Investment income: Official custodian for Charinco shares 373 Donations - Other bank interest received 38 Total income 111,354 Expenditure Costs of raising funds - Expenditure on charitable activities 3 112,008 Total expenditure 112,008 Net income/(expenditure) (654) Transfers Transfers between funds - Net income/(expenditure) before gains and losses on investments (654) Net gains/(losses) on investments (44,816) Net movement in funds (45,470) Reconciliation of funds Balances brought forward at 1 January 2022 10 656,570 Balances carried forward at 31 December 2022 10 611,100 |
Restricted Funds £ - - - - - - - - - - - - - - - |
Total Funds 2022 £ 110,943 373 - 38 111,354 - 112,008 112,008 (654) - (654) (44,816) (45,470) 656,570 611,100 |
Total Funds 2021 £ 109,265 373 100 2 109,740 - 112,145 112,145 (2,405) - (2,405) 69,235 66,830 589,740 656,570 |
|---|---|---|---|
The Statement of Financial Activities has been prepared on the basis that all operations are continuing.
There are no gains or losses other than those passing through the Statement of Financial Activities.
Sandbach Almshouse Charity
6
Balance Sheet as at 31 December 2022
| Note | 2022 | 2021 | |||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | ||||
| Fixed assets | |||||||
| Housing properties | 4 | 828,018 | 828,018 | ||||
| Less: Social housing grant |
4 | (663,256) | (663,256) | ||||
| Accumulated depreciation | 4 | (63,075) | (58,497) | ||||
| Tangible assets | 4 | 96,743 | 99,029 | ||||
| Current assets | 198,430 | 205,294 | |||||
| Debtors | 5 | 2,355 | 2,090 | ||||
| Investments | 6 | 440,998 | 482,814 | ||||
| Cash at bank and in hand | 7 | 15,984 | 13,410 | ||||
| Creditors: | 459,337 | 498,314 | |||||
| amounts falling due within one year | 8 | (15,525) | (15,645) | ||||
| Net current assets | 443,812 | 482,669 | |||||
| Total assets less current liabilities | 642,242 | 687,963 | |||||
| Creditors: | |||||||
| amounts falling due after more than | 9 | (31,142) | (31,393) | ||||
| one year | |||||||
| Net assets | 611,100 | 656,570 | |||||
| Funds | 10 | ||||||
| Designated reserves | |||||||
| Routine maintenance | 99,942 | 91,399 | |||||
| Cyclical maintenance | 107,178 | 100,016 | |||||
| Extraordinary maintenance fund | 33,355 | 33,355 | |||||
| Other reserves | |||||||
| Investment revaluation reserve | 390,070 | 434,886 | |||||
| Income and expenditure account | (19,445) | (3,086) | |||||
| 611,100 | 656,570 | ||||||
| Approved by the board of trustees on | ………………………. | and signed on their behalf by: | |||||
| …………………………………… | (Signature) | ………………………………… (Signature) | |||||
| …………………………………… | (Name) | ………………………………… (Name) | |||||
| Trustee | Trustee |
Sandbach Almshouse Charity
7
Statement of Cash Flows for the year ended 31 December 2022
| Note Net cash generated from operating activities 7 Cash flow from investing activities Interest and dividends Proceeds from sale of investments Purchase of investments Purchase of fixed assets Repayment of borrowings Net change in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December |
2022 £ 7,891 411 - (3,000) - (2,728) 2,574 13,410 15,984 |
2021 £ 6,102 475 - (3,000) - (2,707) 870 12,540 13,410 |
|---|---|---|
Sandbach Almshouse Charity
8
Notes to the Accounts for the year ended 31 December 2022
1. Accounting Policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Charity's financial statements.
Basis of Accounting
The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of fixed assets.
The financial statements are prepared in £ sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) and the Charities Act 2011.
Income
All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Investment income includes interest and dividends from investments and bank interest. It is accounted for on an accruals basis.
Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable activities includes repairs and maintenance which are paid for out of a routine maintenance fund and a cyclical maintenance fund.
Realised Gains and Losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Fixed Assets and Depreciation
Housing properties are stated at cost less social housing grant and depreciation.
Sandbach Almshouse Charity
9
Notes to the Accounts for the year ended 31 December 2022
1. Accounting Policies Continued
Freehold land is not depreciated. Housing properties are split between the structure and those major components which require periodic replacement. Each component is accounted for separately and depreciated over its individual useful economic life. Expenditure relating to subsequent replacement or renewal of components is capitalised as incurred. The Charity depreciates freehold buildings on a straight line basis over the estimated useful life of the component categories. The identified components, to which the Trustees has disaggregated the housing properties balance and their estimated useful economic lives, are as follows:
| Housing properties | Structure | 100 years |
|---|---|---|
| Roofs | 70 years | |
| Windows and external doors | 30 years | |
| Kitchens | 30 years | |
| Bathrooms | 35 years | |
| Electrics | 40 years | |
| Gas boilers | 30 years | |
| Communal fixtures | 10 years | |
| Central heating | 30 years | |
| Communal meeting room | Structure | 100 years |
| Windows and external doors | 30 years | |
| Gas boiler | 30 years | |
| Kitchen | 30 years | |
| Landscaping and car parks | 10 years | |
| Sheds and allotments | 20 years | |
| Warden control system | 10 years |
A full years depreciation is charged in the year the above assets were acquired and none in the year of disposal.
Social Housing Grant
Grants for capital expenditure are deducted from the cost of the fixed assets to which they relate as they become receivable. Where individual components are disposed of and this does not create a relevant event for recycling purposes, any grant which has been allocated to the component is released to the income and expenditure account. Upon disposal of the associated property, the Charity is required to recycle these proceeds.
Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their 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. The Charity does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Sandbach Almshouse Charity
10
Notes to the Accounts for the year ended 31 December 2022
1. Accounting Policies Continued
Taxation
As a registered Charity, it is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the Charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
2. Income Earned from Charitable Activities
| Unrestricted Funds £ Rental income 110,943 110,943 |
Restricted Funds £ - - |
Total 2022 £ 110,943 110,943 |
Total 2021 £ 109,265 109,265 |
|---|---|---|---|
3. Expenditure on Charitable Activities
| Wardens salary Telephone (warden) Warden control (intercom) Electricity Gardening Water rates Window cleaner Communal TV license Mortgage interest Routine maintenance Cyclical maintenance Depreciation Support costs |
Unrestricted Restricted Total Total Funds Funds 2022 2021 £ £ £ £ 25,486 - 25,486 24,724 803 - 803 850 2,278 - 2,278 2,291 3,092 - 3,092 2,723 5,939 - 5,939 6,375 8,660 - 8,660 8,125 96 - 96 104 103 - 103 90 3,072 - 3,072 3,093 9,437 - 9,437 10,204 18,880 - 18,880 20,169 6,864 - 6,864 6,865 |
|---|---|
| Surveyors reports etc. | 2,305 - 2,305 2,130 |
| Insurances | 2,807 - 2,807 2,643 |
| Subscriptions | 917 - 917 902 |
| Sundry expenses | 550 - 550 908 |
| Fees - clerk | 18,840 - 18,840 18,120 |
| Loan arrangement fees | 125 - 125 125 |
| Accountancy fees | 1,754 - 1,754 1,704 |
- 112,008 112,008
112,145
Sandbach Almshouse Charity
11
Notes to the Accounts for the year ended 31 December 2022
4. Tangible Fixed Assets
| 5. | Landscaping Warden & Car Sheds & Housing Control Parks Allotments Properties System £ £ £ £ Cost 1st January 2022 20,354 1,153 828,018 8,987 Additions - - - - 31st December 2022 20,354 1,153 828,018 8,987 Social Housing Grant 1st January 2022 - - (663,256) - Additions - - - - 31st December 2022 - - (663,256) - Depreciation 1st January 2022 7,306 1,153 58,497 7,192 Additions 144 - 4,578 899 31st December 2022 7,450 1,153 63,075 8,091 Net book amount 31st December 2022 12,904 - 101,687 896 1st January 2022 13,048 - 106,265 1,795 Debtors Rent debtors Prepayments and accrued income |
Communal Meeting Room £ 95,373 - 95,373 - - - 11,187 1,243 12,430 82,943 84,186 2022 £ 895 1,460 2,355 |
Total £ 953,885 - 953,885 (663,256) - (663,256) 85,335 6,864 92,199 198,430 205,294 2021 £ 749 1,341 2,090 |
|---|---|---|---|
Sandbach Almshouse Charity
12
Notes to the Accounts for the year ended 31 December 2022
6. Investments
| Cost or valuation Market value at 1 January 2022 Additions at cost Carrying value of disposals Net unrealised (loss)/gain on revaluation of investments Market value at 31 December 2022 |
2022 £ 482,814 3,000 - (44,816) 440,998 |
2021 £ 410,579 3,000 - 69,235 482,814 |
|---|---|---|
Unlisted Investments
At 1 January 2022 and 31 December 2022 shares were held in Co-op Housing Services (North West) at a historic cost of £1 and a market value of £nil.
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London stock exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The charity is not reliant on investment income to meet its charitable objectives.
7. Reconciliation of Net Movement in Funds to Net Cash Flow from Operating Activities
| Net movement in funds Investment income Add back depreciation charge Losses/(gains) on investments Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash used in operating activities Analysis of Cash and Cash Equivalents Royal Bank of Scotland current account Royal Bank of Scotland high interest account CCLA - Charities deposit fund |
2022 £ (45,470) (411) 6,864 44,816 (265) 2,357 7,891 511 14,565 908 15,984 |
2021 £ 66,830 (475) 6,865 (69,235) 62 2,055 6,102 543 11,967 900 13,410 |
|---|---|---|
Sandbach Almshouse Charity
13
Notes to the Accounts for the year ended 31 December 2022
| 8. 9. **10. ** |
Creditors: Amounts falling due within one year Mortgages - secured Non - housing loan Rent received in advance Accruals and sundry creditors Creditors: Amounts falling due after one year Mortgages - secured Maturity of debt included above Between one and two years Between two and five years In five years or more Statement of Funds Balance B/F Incoming £ £ a) Routine maintenance fund 91,399 17,980 b) Cyclical maintenance fund 100,016 26,042 c) Extraordinary maintenance fund 33,355 - d) Investment revaluation reserve 434,886 - e) Income and expenditure account (3,086) 67,332 Total capital and reserves 656,570 111,354 |
Creditors: Amounts falling due within one year Mortgages - secured Non - housing loan Rent received in advance Accruals and sundry creditors Creditors: Amounts falling due after one year Mortgages - secured Maturity of debt included above Between one and two years Between two and five years In five years or more Statement of Funds Balance B/F Incoming £ £ a) Routine maintenance fund 91,399 17,980 b) Cyclical maintenance fund 100,016 26,042 c) Extraordinary maintenance fund 33,355 - d) Investment revaluation reserve 434,886 - e) Income and expenditure account (3,086) 67,332 Total capital and reserves 656,570 111,354 |
Outgoing £ (9,437) (18,880) - - (83,691) (112,008) |
2022 £ 251 - 4,695 10,579 15,525 2022 £ 31,142 31,142 276 1,005 29,861 31,142 Gains/ Losses £ - - - (44,816) - (44,816) |
2021 £ 228 2,500 4,204 8,713 15,645 2021 £ 31,393 31,393 251 914 30,228 31,393 Balance C/F £ 99,942 107,178 33,355 390,070 (19,445) 611,100 |
|---|---|---|---|---|---|
Mortgages - secured Non - housing loan Rent received in advance Accruals and sundry creditors Creditors: Amounts falling due after one year |
|||||
Mortgages - secured Maturity of debt included above Between one and two years Between two and five years In five years or more Statement of Funds a) Routine maintenance fund b) Cyclical maintenance fund c) Extraordinary maintenance fund d) Investment revaluation reserve e) Income and expenditure account Total capital and reserves |
Balance B/F £ 91,399 100,016 33,355 434,886 (3,086) 656,570 |
All funds are unrestricted.
Sandbach Almshouse Charity
14
Notes to the Accounts for the year ended 31 December 2022
10. Statement of Funds Continued
a) The routine maintenance fund provides for those items of routine maintenance and repair of almshouses belonging to the Charity.
b) The cyclical maintenance fund provides for those items of ordinary maintenance and repair of almshouses belonging to the Charity which reoccur at infrequent intervals.
c) The extraordinary maintenance fund provides for extraordinary repair, improvement or rebuilding of the almshouses belonging to the Charity.
d) The investment revaluation reserve provides for the revaluation of unrestricted investments.
e) The Income and expenditure account relates to funds which can be spent for any purpose of the Charity.
11. Trustee Expenses and Remuneration
No Trustee received any remuneration or expenses in respect of services as Trustee during the year (2021 - £nil).
12. Clerk Fees
John Greenhall & Co Limited charged fees of £18,840 (2021 - £18,120) for services as the clerk to the trustees.
13. Winding up and Dissolution of the charity
If upon winding up or dissolution of the Charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the Charity.