## **BAKERS’ BENEVOLENT SOCIETY**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022**
## **CONTENTS**
||**Page**|
|---|---|
|**Legal and Administrative Information**|**1**|
|**Report of The Trustees**|**2-4**|
|**Accountants’ Report**|**5**|
|**Statement of Comprehensive Income**|**6**|
|**Statement of Changes in Reserves**|**7**|
|**Statement of Financial Position**|**8**|
|**Notes to the Accounts**|**9-16**|
**Registered Social Housing Provider Number A1072**
- 1 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
The management committee acts as trustees for the charity and manage the resources of the society in accordance with their objectives.
## **President**
Mr J Renshaw
## **Vice Presidents**
Mrs J Springett Ms D Cassey Mr P Renshaw Mr A Wood Mr G Rowledge Mr P Heygate
## **Management Committee**
The members of the Management Committee who served during the year were:
Mr C Tomkins (Chairman) Mr D Hume Mr C Beaney (Deputy Chairman) Mr D Hall – Appointed June 2021 Mr A Slingsby – Died May 2021 Sir G Hickinbottom – Appointed June 2021 Mrs M Scott Mr S Springett – Appointed June 2021, died March 2022 Mrs A Hume Mr P Wilkins – Appointed June 2021
## **Clerk to the Society**
Mrs S Pitts BSc(Hons) Cert. EoLC
## **Registered Address**
The Mill House 23 Bakers Lane Epping Essex CM16 5DQ
## **Reporting Accountant**
Yusuf Dedat FCA Clay Ratnage Strevens & Hills Chartered Accountants Suite D, The Business Centre Faringdon Avenue Romford Essex RM3 8EN
- 2 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
The Trustees' present their report together with the financial statements for the year 28 February 2022.
## **Recruitment and Appointment of the Officers and Management Committee**
The Society shall consist of a President, Vice-Presidents, Chair of Trustees, Clerk and Management Committee of Trustees.
The President shall be elected for a term of 1-7 years at an Annual General Meeting (AGM) and may be reelected for a successive period of 1-7 years.
Vice Presidents shall be elected at an AGM to hold office for a term of 5 years and may be re-elected for successive periods of 5 years.
The Management Committee shall consist of not more than 18 Trustee Members. Members shall be appointed by the society at AGMs to hold office for 3 years and any member may be re-elected for a successive period of 3 years. Any vacancy on the Management Committee may be filled by the Management Committee, any such appointment being subject to ratification at the next AGM of the society and to subsist only for the unexpired portion of the term of the original appointment.
A member of the Management Committee may be removed by resolution of the Management Committee or by a resolution of the society passed at an AGM provided that the member is given not less than 21 days notice of the intention.
## **Trustee Induction and Training**
All trustees are familiar with the work of the society before election and understand what is required before their election.
## **Risk Management**
The management committee has conducted a review of the major risks to which the society is exposed. Each year a comprehensive business plan is prepared. The plan covers wide ranging issues such as Health & Safety to challenges facing the society. This strategic planning process ensures that significant risks are identified and steps taken to mitigate them.
## **Investment Policy**
The society’s funds will, in the short term, provide financial support to its beneficiaries in accordance with the society’s objectives. Investment also continues to ensure that the society’s existing housing stock complies with the Decent Homes Act and funds the continued programme of refurbishment work.
## **Reserves Policy**
The reserves of the society consist of the general income and expenditure reserve.
The society has a policy to ensure that the society has sufficient funds in order that predicted works can be completed and also that the level of reserves comply with the Almshouse Association’s recommended practice.
- 3 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## **Objectives and Activities**
The objective of the society is to provide sheltered accommodation for retired people of limited means who have, during their lifetime, worked in the Baking Industry and allied trades. The society also gives assistance to outside beneficiaries who, during their lifetime, have worked in the Baking Industry and allied trades.
The society provides quality welfare to its beneficiaries in a variety of ways from sheltered accommodation to financial support for the purchase of mobility aids and essential household items. The society also provides charitable grants to top up beneficiaries’ basic government pensions.
## **Organisational Structure**
The management committee, which meets bi-monthly is responsible for the strategic direction of the society. The management committee delegates the day-to-day responsibility to the clerk to the society to ensure that the service provided meets the society’s objectives of providing quality welfare and financial support.
## **Financial Review, Achievements and Performance**
The results for the year are set out in the Statement of Comprehensive Income on page 6. An analysis of the society’s income is shown in Note 3 on page 11.
The trustees are pleased to report a surplus of £36,143 for the year. The residents’ contributions for accommodation have increased from £443,357 to £446,540 as shown in Note 3 on page 11. Covid-19 restrictions impacted the society when filling voids when the Government advised movements should be limited. Maintenance costs have reduced from £28,252 to £23,574.
The society has replaced fire doors throughout, where appropriate, at a cost of £65,439. Further costs in the region of £10,000 are expected in the 2023 financial year. The society acknowledges donations of £9,780 from the Worshipful Company of Bakers towards the cost of the fire doors.
The Clerk of the society has conducted a review of the Council Tax and Business Rates borne by the society which has resulted in net refunds of £43,267 to the society and accounts contributed to the surplus.
The trustees, consider the society’s affairs to be satisfactory and in line with their expectations.
## **Plans for the Future**
The society plans to continue delivering the services it provides in the forthcoming years.
Following the expansion of its range of services where extra care is offered to qualifying residents, the society is focused on maintaining its high standard with the Care Quality Commission.
In March 2020 a global Pandemic changed the way people behaved and organisations worked, none more so than those working in health and social care. The Society took radical measures to protect the health and safety of residents and staff. Lockdown and infection control procedures were introduced prior to Government restrictions and an increase in personal protective equipment worn and new policies and procedures introduced. As a result of these strict measures and protocols involving hospital discharges, the society continues to mitigate effects of Covid-19.
**- 4 -**
## **BAKERS’ BENEVOLENT SOCIETY**
## **REPORT OF THE TRUSTEES**
**FOR THE YEAR ENDED 28 FEBRUARY 2022**
## **Plans for the Future (Continued)**
The society is acutely aware of the cost of living crises. The Light and Heat charges of some £60,000 per annuum could easily double if the society went to the market today. The society currently benefits form energy supply contracts which limits the impact but, when they expire, will need addressing.
There is also concern, with food prices increasing, the cost of providing meals to residents. In order to balance the books, the society will have to consider the revenue and expenditure of providing this service.
## **Public Benefit**
In setting and reviewing our aims the Trustees have given careful consideration to the Charity Commission’s guidance on public benefit.
## **Trustees Responsibilities**
The Trustees are responsible for preparing the report and financial statements in accordance with applicable law and regulations.
The Charities Act and registered social housing legislation requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of the Society’s affairs and of the surplus or deficit for that year. In preparing these accounts the committee members are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and estimates that are reasonable and prudent;
- Prepare the accounts on the going concern basis unless it is inappropriate to presume that the Society will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the society. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In determining how amounts are presented within the statement of comprehensive income and statement of financial position, the trustees have had regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting practice (UK GAAP), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and republic of Ireland’.
This report was approved on 24 October 2022, and signed.
**Mr C Tomkins Chairman of Trustees**
**Mr C Beaney Deputy Chairman**
- 5 -
## **ACCOUNTANTS’ REPORT TO THE TRUSTEES ON THE UNAUDITED FINANCIAL STATEMENTS OF BAKERS’ BENEVOLENT SOCIETY FOR THE YEAR ENDED 28 FEBRUARY 2022**
We report on the financial statements of Bakers Benevolent Society for the year 28 February 2022 which are set out on pages 6 to 16.
## **Respective responsibilities of trustees and reporting accountants**
The Trustees of the Registered Social Housing Provider are 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
## **Opinion**
In our opinion:
- the accounts for the year 28 February 2022 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:
- the accounts comply with the requirements of the Charities Act 2011;
- the Registered Social Housing Provider has satisfied the conditions for exemption from audit of the accounts for the year 28 February 2022 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 of the Regulator of Social Housing 2022.
**Yusuf Dedat FCA** Reporting Accountant **Clay Ratnage Strevens & Hills** Chartered Accountants Suite D, The Business Centre Faringdon Avenue Romford Essex RM3 8EN
**Date: 24 October 2022**
- 6 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **STATEMENT OF COMPREHENSIVE INCOME**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
|**Note**
**TURNOVER**
3
Operating costs
**OPERATING SURPLUS FOR YEAR**
4
Interest receivable
5
Interest payable
6
**TOTAL COMPREHENSIVE SURPLUS FOR THE YEAR**
|**2022**
587,141
551,168
35,973
210
(40)
£36,143
=======|**2021**
599,141
597,018|
|---|---|---|
|||2,123
432
(79)|
|||
£2,476
=======|
No operations have been discontinued or acquired during the year, and the amounts above relate entirely to continuing activities.
The accompanying notes form part of the financial statements.
The Accounts were approved by the Trustees and signed on their behalf on 24 October 2022, by:
## **Mr C Tomkins (Chairman of Trustees)**
## **Mr C Beaney (Deputy Chairman)**
- 7 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **STATEMENT OF CHANGES IN RESERVES**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
||**Income and**|**Restricted**|**Total**|
|---|---|---|---|
||**expenditure**|**reserve**||
||**reserve**|||
|Balance as at 1 March 2020|1,390,192|-|1,390,192|
|Total comprehensive surplus for the year|2,476|-|2,476|
|**Balance at 28 February 2021**|1,392,668|-|1,392,668|
|Total comprehensive surplus for the year|36,143|-|36,143|
|**Balance at 28 February 2022**|£ 1,428,811|-|£ 1,428,811|
||==========|==========|==========|
- 8 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **STATEMENT OF FINANCIAL POSITION**
## **AS AT 28 FEBRUARY 2022**
|**Notes**
**FIXED ASSETS**
Housing properties
8
Office equipment
8
Furniture and equipment
8
**CURRENT ASSETS**
Stock
10
Debtors and prepayments
11
Cash at bank and in hand
Creditors: Amounts falling due
within one year
12
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
Creditors: Amounts falling due
after more than one year
13
**TOTAL NET ASSETS**
**RESERVES**|**2022**
2,085,168
634
76,764
2,162,566
-
92,129
373,228
465,357
71,645
393,712
2,556,278
1,127,467
£ 1,428,811
=========
£ 1,428,811
=========|**2021**
2,112,175
1,575
29,280
731
52,158
387,690
440,579
55,160
£
£
|2,143,030
385,419
2,528,449
1,135,781|
|---|---|---|---|
||
|||
||||
1,392,668
=========
1,392,668
=========|
The accompanying notes form part of the financial statements.
The Accounts were approved by the Trustees and signed on its behalf on 24 October 2022, by:
**Mr C Tomkins** (Chairman of Trustees)
**Mr C Beaney** (Deputy Chairman)
- 9 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## 1 **LEGAL STATUS**
The society is registered under the Charities Act (Number 211307) and is an exempt charity and registered with the Homes and Communities Agency as a Registered Provider (Number A1072). It was established 13[th] December 1832.
## 2 **ACCOUNTING POLICIES**
## _**Basis of Accounting**_
The financial statements of the society are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction of the Regulator of Social Housing 2022.
## _**Turnover**_
Turnover comprises rental income receivable in the year, services supplied, appeal income and grants receivable.
## _**Value Added Tax**_
The company is not registered for VAT and as such all expenses are shown inclusive of VAT.
## _**Financial Instruments**_
Financial instruments which meet the criteria of a basic financial instrument as defined in Section 11 of FRS 102 are accounted for under an amortised historic cost model.
- 10 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## **Accounting policies (continued)**
## _**Housing Properties**_
Housing properties are principally properties available for rent and are stated at cost less any accumulated depreciation and impairment. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development and expenditure incurred in respect of improvements.
Improvements are works to existing properties which result in an increase in the net rental income, including a reduction in maintenance costs or result in a significant extension of the useful economic life of the property
Major components of housing properties, such as lifts and warden alarm systems, have been accounted for and depreciated separately from the connected housing property.
## _**Government Grants**_
Government grants include grants receivable from the Homes and Communities Agency, local authorities and other government organisations. Government grants received for housing properties are recognised as income over the useful life of the housing property structure and, where applicable, its individual components under the accruals model.
## _**Depreciation**_
Depreciation is calculated to write down the cost or valuation less estimated residual value of all tangible fixed assets by equal annual instalments over their expected useful lives. The rates and periods generally applicable are:
|Housing Properties|1% straight line|
|---|---|
|Office Equipment|20% straight line|
|Furniture and Equipment|20% straight line|
|Integrated Features|10% straight line|
## _**Stock**_
Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## _**Allocation of Expenses**_
Expenses are allocated to management, repairs and service costs on the basis of the proportion of time or other relevant factors attributable to these activities.
## _**Operating Leases**_
Rentals payable under operating leases are charged to income and expenditure on a straight-line basis over the lease term.
- 11 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
|3
**TURNOVER**
Turnover received in the year:
Residents’ contributions
Residents’ services
Appeal and grant income
£
4
**OPERATING SURPLUS/(DEFICIT)**
Operating surplus is stated after charging:
Accountants’ remuneration
Depreciation of owned assets
5
**INTEREST RECEIVABLE AND SIMILAR INCOME**
Bank deposits
6
**INTEREST PAYABLE AND SIMILAR CHARGES**
On bank loans and overdrafts|**2022**
446,540
104,584
36,017
587,141
£
=======
**2022**
4,855
45,903
=======
**2022**
£ 210
=======
**2022**
£ 40
=======|**2021**
443,357
133,053
22,731
599,141
=======
**2021**
4,620
39,360
=======
**2021**
£ 432
=======
**2021**
£ 79
=======|
|---|---|---|
- 12 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## 7 **EMPLOYEES**
The average number of persons employed during the year, expressed in full time equivalents (i.e. 35 hours per week) was:
|35 hours per week) was:|||
|---|---|---|
||**2022**|**2021**|
|Administration|2|2|
|Welfare|9|9|
|Dining room|1|1|
|Housekeeping|2|1|
||14|13|
||==|==|
The full time equivalent number of staff who received remuneration of more than £60,000 in the year was Nil _(2021 - £Nil)_
Employees costs were as follows:
|Wages and salaries
Social security costs
Pension costs – Defined Contribution Scheme
£|**2022**
**2021**
340,957
351,652
24,460
21,641
6,072
6,206
371,489
£ 379,499
=======
=======|
|---|---|
The Aggregate remuneration for key management personnel charged in the year is:
|||**2022**||**2021**|
|---|---|---|---|---|
|Basic salary|£|108,742|£|107,631|
|||=======||=======|
During the year, the trustees of the society received remuneration of £Nil _(2021 - £Nil)_
- 13 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## 8 **TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**|||||
|---|---|---|---|---|
||**Social**||**Furniture**||
||**Housing**|**Office**|**And**||
||**Properties**|**Equipment**|**Equipment**|**Total**|
||**£**|**£**|**£**|**£**|
|**Cost**|||||
|At 1 March 2021|2,700,735|52,371|241,927|2,995,033|
|Additions|-||65,439|65,439|
|Disposals|-|-|-|-|
|**At 28 February 2022**|2,700,735|52,371|307,366|3,060,472|
|**Depreciation**|||||
|At 1 March 2021|588,560|50,796|212,647|852,003|
|Charge for the year|27,007|941|17,955|45,903|
|Depreciation on disposals|-|-|-|-|
|**At 28 February 2022**|615,567|51,737|230,602|897,906|
||=========|=======|========|========|
|**Net Book Value**|||||
|**At 28 February 2022**|2,085,168|634|76,764|2,162,566|
||=========|========|=======|==========|
|**At 1 March 2021**|2,112,175|1,575|29,280|2,143,030|
||=========|========|=======|==========|
## 9 **INCOME TAX AND VAT**
The society has charitable status and is exempt from Income Tax on the income it has received.
The society is not registered for VAT. Accordingly no VAT is charged to residents, and expenditure in the Statement of Comprehensive Income includes the relevant VAT.
|10|**STOCK**|**2022**|**2021**|
|---|---|---|---|
||Stock of Christmas cards|£ -|£ 731|
|||======|======|
- 14 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
|11
**DEBTORS**
Rent receivable
Prepayments and accrued income
12
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE**
**YEAR**
Rents and deposits paid in advance
Other creditors
Accruals and deferred grant income
13
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE**
**THAN ONE YEAR**
Deferred grant/donation income – various
Deferred grant income – Social Housing Grant (Note 14)
£
14
**DEFERRED INCOME: SOCIAL HOUSING GRANT**
At 1 March
Grants received in the year
Released to income in the year
At 28 February
£
Amounts to be released within one year
Amounts to be released in more than one year
£|**2022**
60,180
31,949
£ 92,129
======
**2022**
6,689
1,954
63,002
£ 71,645
======
**2022**
11,824
1,115,643
1,127,467
£
=========
**2022**
1,144,919
-
(14,638)
1,130,281
£
=========
14,638
1,115,643
1,130,281
£
=========|**2021**
34,221
17,937
£ 52,158
======
**2021**
8,416
1,534
45,210
£ 55,160
======
**2021**
5,500
1,130,281|**2021**
34,221
17,937|
|---|---|---|---|
|||1,135,781
=========
**2021**
1,159,557
-
(14,638)||
|||
1,144,919
=========
14,638
1,130,281||
|||1,144,919
=========||
- 15 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
|15
**CASH FLOW FROM OPERATIVING ACTIVITIES**
**Cash flows from operating activities**
Operating surplus from the year
Adjustment for non-cash items:
Depreciation of tangible assets
Decrease in stock
(Increase) / decrease in trade and other debtors
Increase/(decrease) in trade and other creditors
Interest payable
Interest receivable
Purchase of tangible fixed assets
**Net change in cash and cash equivalent**
**Cash and cash equivalent at beginning of the year**
**Cash and cash equivalent at end of the year**
**£**
16
**HOUSING STOCK**
**Sheltered Accommodation –**
**Number of Units**
**Epping**
Single flat
Customised single flat conversion
Single bungalow conversion with bedroom
Double flat
Double bungalow
Refurbished flat
**Total units**
17
**OPERATING LEASES**
As at 28 February 2022 the Society had annual commitments
under non-cancellable operating leases as detailed below:
Operating leases which expire:
Two to five years
More than five year’s||**2022**
**2021**
35,973
2,123
45,903
39,360
731
200
(39,971)
(28,564)
8,171
(14,889)
(40)
(79)
210
432
(65,439)
(3,618)
**(14,462)**
**(5,035)**
**387,690**
**392,725**
**373,228**
**£ 387,690**
=======
=======
**Units under management**
**2022**
**2021**
12
12
2
2
8
8
8
8
5
5
13
13
**48**
**48**
**2022**
**2021**
£768
-
-
£768
======
======|
|---|---|---|
||
||
- 16 -
## **BAKERS’ BENEVOLENT SOCIETY**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 28 FEBRUARY 2022**
## 18 **RELATED PARTIES**
The society paid a total of £5,050 _(2021 - £6,291)_ to DRP Plumbing for services during the year, a business controlled by a relative of the Clerk to the society, Mrs S Pitts.
## 19 **CONTROLLING PARTY**
Under the Rules of the society, the Management Committee, as appointed from time to time, is deemed to control the society.