Registered number: 211272
THE HONYWOOD AND DOUGLAS CHARITY
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
THE HONYWOOD AND DOUGLAS CHARITY
REGISTERED SOCIAL HOUSING PROVIDER INFORMATION
| Trustees | Mr A Barr |
|---|---|
| Dr MH Porter | |
| Dr AH Taylor | |
| Mrs S Greenwood | |
| Mr AM Davidson (resigned 9 February 2022) | |
| Mr ED Chantler MBE | |
| Mr WH Peter (resigned 12 May 2021) | |
| Mrs S Hasler (resigned 10 February 2021) | |
| Mr JF Barr | |
| Mr MR Ballard | |
| Ms H Thorneloe | |
| Rev Dr J Huggins | |
| Mrs M McFarlane (appointed 12 May 2021, resigned 6 October 2021) | |
| Mr P Jarvis (appointed 12 May 2021) | |
| Mrs J Gent (appointed 9 February 2022) | |
| Mr WH Alexander (appointed 9 February 2022) | |
| Registered number | 211272 |
| Principal address | The Homestead |
| Grafty Green | |
| Maidstone | |
| Kent | |
| ME17 2AP | |
| Accountants | MHA MacIntyre Hudson |
| Chartered Accountants | |
| Victoria Court | |
| 17-21 Ashford Road | |
| Maidstone | |
| Kent | |
| ME14 5DA | |
| RSH registration number | A4001 |
| Treasurer | Mr WJ Collins FCCA |
| Clerk | Mrs J Rimmer |
THE HONYWOOD AND DOUGLAS CHARITY
| CONTENTS | |
|---|---|
| Page | |
| Report of the Trustees | 1 |
| Accountants' Report | 4 |
| Statement of Comprehensive Income | 5 |
| Balance Sheet | 6 |
| Statement of Cash Flows | 7 |
| Analysis of Net Debt | 8 |
| Notes to the Financial Statements | 9 - 15 |
| Detailed Statement of Financial Activities | 16 - 17 |
THE HONYWOOD AND DOUGLAS CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
OBJECTIVES AND ACTIVITIES
Principal activities
The Charity's governing document is a scheme of the Charity Commissioners of 5 July 1996. This merged the separate Honywood and Douglas charities to be administered and managed together as one charity (registration number 211272). The Honywood and Douglas charities were originally founded in 1622 and 1858 respectively.
The Almshouses belonging to the Charity are used for the accommodation of residents of not less than 60 years of age who, except in special cases approved by the Charity Commissioners, have lived in the ancient Parish of Lenham or the Parish of Boughton Malherbe for at least two years. Appointments of residents are made by the trustees.
The trustees maintain an Extraordinary Repair Fund for the purpose of providing for the extraordinary repair, improvement or rebuilding of the Almshouses. The fund is invested in Accumulation Shares in the M&G Charity Multi Asset fund.
The charity has now constructed almshouses on all the land which it previously owned and, at the year end, all 26 of the units were let. In December 2019, a further property was acquired and the trustees have obtained planning permission to construct three further units by converting the existing building. The Covid-19 pandemic resulted in delays with progression of the scheme but work commenced in early 2022 with completion expected before the end of the year. On completion, the Charity will have twenty-nine residential units.
The Charity has twenty-six residential units. The results for the year are shown on page 5.
Public benefit
The trustees have had due regard to the Charity Commission's published guidance on public benefit.
Trustees
The board of trustees usually consists of one ex-officio trustee, four nominated trustees and seven co-opted trustees. Two nominated trustees are appointed by the Parish Council of Lenham and two by the Parish Council of Boughton Malherbe, for a period of four years. Co-opted trustees are appointed by resolution of the trustees for a term of five years.
The trustees who served during the year are detailed on the information page.
The trustees meet regularly, and at least twice a year, to attend to the charity's affairs. Decisions are taken based on a majority of the votes and, in the event of equality of votes, the chairman has a casting vote.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.
Page 1
THE HONYWOOD AND DOUGLAS CHARITY
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Management of the charity's affairs and risk
The trustees appointed have local knowledge and are therefore generally aware of the charity's aims and housing stock. New trustees are provided with a copy of the charity's Trust Deed, the latest accounts and details of the obligations of the residents and the trustees.
The day to day management of the charity is delegated to the Treasurer, Mr WJ Collins, under consultation with the Board of Trustees. The overseeing of the ongoing repair of the charity's properties has been delegated to a local maintenance co-ordinator in consultation with the trustees.
The trustees consider that the major risks to which the charity is exposed are the preservation of the properties, the need to comply with relevant legal and regulatory obligations and the need to ensure that all financial transactions are properly recorded. They have therefore put the following systems into place :
(a) the buildings insurance is reviewed annually to ensure it remains appropriate and regular safety checks on fire equipment and gas appliances in the properties are undertaken. The general state of repair of the properties is reviewed by the Board of Trustees;
(b) Mr WJ Collins ensures that he remains up to date with the requirements of the Regulator of Social Housing, the Charities Commission and the National Association of Almshouses and draws any relevant information to the attention of the trustees.
(c) the charity's total income from maintenance contributions is reconciled annually and all major expenditure requires prior approval at a meeting of the trustees.
The trustees consider that the above measures enable them to meet the Value for Money and the Governance and Financial Viability Standards.
The trustees do not consider that the Covid-19 pandemic has had any significant financial effect on the charity, and are confident this will continue to be the case.
MARKET VALUE OF LAND AND BUILDINGS
The trustees consider that the market value of freehold land and buildings is in excess of the amount shown in the financial statements but, as these assets are used in the charity's activities and no disposals are envisaged, the excess has not been quantified.
STATEMENT OF TRUSTEES RESPONSIBILITIES
The trustees are responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Charity law and registered social housing legislation requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its income and expenditure for that period. In preparing these financial statements, the trustees are required to :
-
select suitable accounting policies and then apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in business.
Page 2
THE HONYWOOD AND DOUGLAS CHARITY
REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing in England 2019. They also have a general responsibility for taking reasonable steps to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Approved by order of the Board of Trustees on 10 August 2022 and signed on their behalf by:
.............................................................. Mr A Barr - Chairman
Page 3
THE HONYWOOD AND DOUGLAS CHARITY
ACCOUNTANTS' REPORT TO THE BOARD OF TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE HONYWOOD AND DOUGLAS CHARITY FOR THE YEAR ENDED 31 DECEMBER 2021
We report on the accounts for the year ended 31 December 2021.
Respective responsibilities of the Board of Trustees and reporting accountants
The Board of Trustees of the Registered Social Housing Provider is responsible for the preparation of the accounts, and they consider that the Registered Social Housing Provider is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion.
Basis of opinion
Our procedures consisted of comparing the accounts with the accounting records kept by the Registered Social Housing Provider and making such enquiries of the officers of the Registered Social Housing Provider as we considered necessary for the purpose of this report. These procedures provide the only assurance expressed in our opinion.
Opinion
In our opinion:
-
the accounts for year ended 31 December 2021 are in accordance with the accounting records kept by the Registered Social Housing Provider under paragraph 135(2)(a) of the Housing and Regeneration Act 2008;
-
having regard only to, and on the basis of the information contained in the accounting records:
-
(1) the accounts comply with the requirements of the Charities Act 2011;
(2) the Registered Social Housing Provider has satisfied the conditions for exemption from an audit of the accounts for the year ended 31 December 2021 specified in section 136(3) of the Housing and Regeneration Act 2008;
-
the accounts comply with the requirements of the Housing and Regeneration Act 2008 and the
-
Accounting Direction for private registered providers of social housing in England 2019.
MHA MacIntyre Hudson Chartered Accountants Victoria Court 17-21 Ashford Road Maidstone Kent ME14 5DA Date: 11 August 2022
Page 4
THE HONYWOOD AND DOUGLAS CHARITY
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Maintenance contributions Investment income Gross income Operating expenses Operating surplus Surplus for the financial year Other comprehensive income for the year Gains/(losses) on revaluation of investments Other comprehensive income for the year Total comprehensive income for the year |
2021 £ 127,614 623 |
2020 £ 123,850 666 |
|---|---|---|
| 128,237 (105,881) |
124,516 (113,424) |
|
| 22,356 | 11,092 | |
| 22,356 14,193 |
11,092 (4,461) |
|
| 14,193 | (4,461) | |
| 36,549 | 6,631 |
All income and expenditure has arisen from continuing activities.
Approved by the Board of Trustees on 10 August 2022 and signed on their behalf by:
............................................................... Mrs S Greenwood - Trustee
............................................................... Mr A Barr - Chairman
The notes on pages 9 to 15 form part of these financial statements.
Page 5
THE HONYWOOD AND DOUGLAS CHARITY REGISTERED NUMBER: 211272
BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 7 Investments 8 Current assets Debtors: amounts falling due within one year 9 Current asset investments 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Net assets Capital and reserves Unrestricted funds |
13,268 17,214 83,963 |
2021 £ 630,610 109,715 740,325 12,853 15,792 69,462 98,107 (18,528) 96,217 836,542 836,542 836,542 836,542 |
2020 £ 623,470 96,944 |
|---|---|---|---|
| 720,414 79,579 |
|||
| 114,445 (18,228) |
|||
| 799,993 | |||
| 799,993 | |||
799,993 |
|||
| 799,993 |
The financial statements were approved by the Board of Trustees on 10 August 2022 and signed on their behalf by:
............................................................... Mrs S Greenwood - Trustee
............................................................... Mr A Barr - Chairman
The notes on pages 9 to 15 form part of these financial statements.
Page 6
THE HONYWOOD AND DOUGLAS CHARITY
| STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 |
||
|---|---|---|
| Cash flows from operating activities Profit for the financial year Adjustments for: Depreciation of tangible assets Investment income (Increase) in debtors (Decrease)/increase in creditors Net cash generated from operating activities Cash flows from investing activities Purchase of tangible fixed assets Income from investments Dividends received Net cash from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at the end of year Cash and cash equivalents at the end of year comprise: Cash at bank and in hand |
2021 £ 22,356 24,918 (623) (415) (300) |
2020 £ 11,092 24,918 (666) (772) 10,539 |
| 45,936 | 45,111 | |
| (32,058) - 623 |
(11,606) 5 661 |
|
| (31,435) | (10,940) | |
| 14,501 69,462 |
34,171 35,291 |
|
| 83,963 | 69,462 | |
| 83,963 | 69,462 |
|
| 83,963 | 69,462 |
The notes on pages 9 to 15 form part of these financial statements.
Page 7
THE HONYWOOD AND DOUGLAS CHARITY
ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2021
| Cash in bank and in hand | At 1 January 2021 £ - 69,462 - |
Cash flows £ - 14,501 - |
At 31 December 2021 £ - 83,963 - |
|---|---|---|---|
| 69,462 | 14,501 | 83,963 |
The notes on pages 9 to 15 form part of these financial statements.
Page 8
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. General information
The charity is registered in England with the Regulator of Social Housing as a Registered Social Housing Provider and as a charity. The registered address is The Homestead, Headcorn Road, Grafty Green, Maidstone, ME17 2AP. Details of its principal activities are shown on page 1.
2. Accounting policies
2.1 Basis of preparation of financial statements
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Statement of Recommended Practice for Registered Social Housing Providers 2018 and comply with the Accounting Direction for Private Registered Providers of Social Housing in England 2019.
The financial statements are prepared on a going concern basis and under the historical cost convention as modified by the revaluation of investments.
The following principal accounting policies have been applied:
2.2 Turnover
Turnover represents maintenance contributions and service charge income receivable in the year, net of maintenance contributions and service charge losses from voids.
2.3 Tangible fixed assets
Tangible fixed assets (including social housing properties) are stated at cost, less accumulated depreciation and Social Housing Grants.
Freehold land is not depreciated.
Housing properties in the course of construction are stated at cost and are not depreciated.
Depreciation is provided on all other tangible fixed assets to write off the cost, less estimated residual value, over the estimated useful life as follows :
Almshouses and conversions - by equal instalments over 25 years Refurbishment, kitchens and bathrooms - by equal instalments over 15 years Integral features - by equal instalments over 10 years Fixtures - by equal instalments over 5 years
Development costs of properties are capitalised to the extent that they are directly attributable to bringing the properties into working condition for their intended use. Directly attributable costs include costs of architects, surveyors and project administrators.
2.4 Taxation
The charity is exempt from tax on its charitable activities.
Page 9
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.5 Extraordinary repair fund
The extraordinary repair fund is maintained for the purpose of providing for the extraordinary repair or rebuilding of the Almshouses.
2.6 Investments
Investments are carried at market value or, where this is not readily available, at the Trustees' estimate of market value. Investments held for the long term are included in fixed assets. Investments held as part of short term treasury management are included in current assets.
2.7 Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.
2.8 Grants
Grants towards capital expenditure are deducted from the cost of the asset.
2.9 Loans and borrowings
Loans and borrowings are considered to be basic financial instruments and, as such, are measured at amortised cost.
2.10 Cyclical repairs and maintenance
Due to the establishment of a regular programme of repair and maintenance, provision for future works is not made and actual costs are charged to the income and expenditure account when incurred.
2.11 Major repairs
Provisions are made for future major repair costs on all housing properties, in so far as this is not eligible for grants from the Homes and Community Agency or local authorities. Provisions are only recognised to the extent that they represent a present obligation as a result of a past event, a payment is likely to be made and a reliable estimate can be made.
2.12 Judgements and key sources of estimation uncertainty
No significant judgements have had to be made by the trustees in preparing these financial statements, nor have they identified any key sources of estimation uncertainty.
Page 10
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
3. Investment Income
| Dividends received Interest receivable |
2021 £ 623 - |
2020 £ 661 5 |
|---|---|---|
| 623 | 666 |
4. Trustees' Remuneration and Benefits
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
5. Operating Surplus
| Honoraria Depreciation |
2021 £ 18,543 24,918 |
2020 £ 14,690 24,918 |
|---|---|---|
6. Turnover
Turnover comprises maintenance contributions receivable in respect of the housing properties, Douglas and Honywood Almshouses. During the year there were twenty six units of accommodation available for housing older people, twenty one at Douglas and five at Honywood.
| Turnover comprises: Maintenance contributions Charge for heating |
2021 £ 115,384 12,230 |
2020 £ 111,810 12,040 |
|---|---|---|
| 127,614 | 123,850 |
Losses arising from voids amounted to £2,226 (2020: £4,360).
Page 11
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
7. Tangible fixed assets
| Cost or valuation At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year on owned assets At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 1,165,107 32,058 |
Fixtures and fittings £ 2,440 - |
Total £ 1,167,547 32,058 |
|---|---|---|---|
| 1,197,165 | 2,440 |
1,199,605 | |
| 541,637 24,918 |
2,440 - |
544,077 24,918 |
|
| 566,555 | 2,440 |
568,995 | |
| 630,610 | - | 630,610 | |
| 623,470 | - |
623,470 |
Freehold property cost amounts to £1,559,792 (2020: £1,527,734) before Social Housing Grants of £362,627 (2020: £362,627), bringing the net property cost to £1,197,165 (2020: £1,165,107).
The Social Housing Grants are unsecured but would be repayable in the event of the sale of the Almshouses.
Included under Freehold Properties are kitchens, bathrooms and other fixtures with a total cost of £206,759 and net book value at the year end of £30,883. Of these, assets costing £188,314 and with a net book value of £30,883 are depreciated over 15 years. The estimated life of the remaining assets is considered to be 10 years.
During the year all expenditure relating to repairs and maintenance of the existing Almshouses was charged to the Income and Expenditure Account.
Page 12
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
8. Fixed asset investments
| Cost or valuation of accumulation shares At 1 January 2021 Revaluations At 31 December 2021 There were no investment assets outside the UK. |
Shares £ 96,944 12,771 |
|---|---|
| 109,715 | |
The historical cost of the accumulation shares is £64,215.
9. Debtors
| Rent arrears Maintenance contribution accrued income 10. Current asset investments Income shares |
2021 £ 2,535 10,733 |
2020 £ 1,715 11,138 |
|---|---|---|
| 13,268 | 12,853 | |
| 2021 £ 17,214 |
2020 £ 15,792 |
|
| 17,214 | 15,792 |
The historical cost of the income shares is £11,599.
During the year there were no purchases or sales of income shares. The market value of the shares held increased by £1,422 (2020: £1,275 decrease).
Page 13
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
11. Creditors: Amounts falling due within one year
| Other creditors Accruals and deferred income |
2021 £ 10,819 7,409 |
2020 £ 6,346 12,182 |
|---|---|---|
| 18,228 | 18,528 |
12. Movement in funds
| Unrestricted funds General fund Extraordinary repair fund |
At 1/1/21 £ 703,049 96,944 |
Net movement in funds £ 23,778 12,771 |
Transfers between funds £ - - |
At 31/12/21 £ 726,827 109,715 |
|---|---|---|---|---|
| 799,993 | 36,549 | - |
836,542 |
Total funds
Net movements in funds included in the above are as follows:
| Unrestricted funds General fund Extraordinary repair fund |
Incoming resources £ 128,237 - |
Resources expended £ (105,881) - |
Gains and losses £ 1,422 12,771 |
Movements in funds £ 23,778 12,771 |
|---|---|---|---|---|
| 128,237 | (105,881) | 14,193 |
36,549 |
Page 14
THE HONYWOOD AND DOUGLAS CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
Comparatives for movements in funds:
| Unrestricted funds General fund Extraordinary repair fund Total funds |
At 1/1/20 £ 693,232 100,130 |
Net movement in funds £ 9,817 (3,186) |
Transfers between funds £ - - |
At 31/12/20 £ 703,049 96,944 |
|---|---|---|---|---|
| 793,362 | 6,631 | - | 799,993 | |
Comparative net movements in funds included in the above are as follows:
| Unrestricted funds General fund Extraordinary repair fund |
Incoming resources £ 124,516 - |
Resources expended £ (113,424) - |
Gains and losses £ (1,275) (3,186) |
Movements in funds £ 9,817 (3,186) |
|---|---|---|---|---|
| 124,516 | (113,424) | (4,461) | 6,631 |
The extraordinary repair fund was established under the Trust Deed dated 5 July 1996 for the purpose of providing for the extraordinary repair, improvement or rebuilding of the almshouses of the charity.
No extraordinary repair costs arose during this year, nor were any necessary improvements identified by the trustees.
Page 15
THE HONYWOOD AND DOUGLAS CHARITY
DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Maintenance contributions Investment income Total incoming resources Less: overheads Operating expenditure Operating surplus Net income for the year |
2021 £ 127,614 623 |
2020 £ 123,850 666 |
|---|---|---|
| 128,237 | 124,516 | |
| (105,881) | (113,424) |
|
| 22,356 | 11,092 | |
| 22,356 | 11,092 |
Page 16
THE HONYWOOD AND DOUGLAS CHARITY
SCHEDULE TO THE DETAILED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021
| Income Maintenance contributions Investment income Dividends Interest Administration expenses Printing and stationery NAA subscription Legal and professional Accountancy fees Bank charges Sundry expenses Water and sewerage Electricity Gas Insurances Depreciation Monitoring lifelines 23 High Street - running costs Day to day maintenance Cyclical and major maintenance Christmas alms Honoraria Home and Communities Agency subscription Housing ombudsman subscription |
2021 £ 127,614 |
2020 £ 123,850 |
|---|---|---|
| 127,614 | 123,850 | |
| 2021 £ 623 - |
2020 £ 661 5 |
|
| 623 | 666 | |
| 2021 £ 275 56 - 1,770 86 1,293 5,376 1,681 10,359 3,387 24,918 666 2,862 16,715 14,744 2,555 18,543 300 295 |
2020 £ 161 56 1,758 1,656 150 988 6,306 1,202 10,605 3,332 24,918 668 1,964 17,548 24,501 2,340 14,690 300 281 |
|
| 105,881 | 113,424 |
Page 17