## **ANNUAL REPORT AND GROUP ACCOUNTS** # **OF** ## **GREAT HOSPITAL, NORWICH** **FOR THE YEAR ENDED 31 MARCH 2024** **REGISTERED CHARITY NUMBER: 211953 REGULATOR OF SOCIAL HOUSING NUMBER: A0846** **GREAT HOSPITAL, NORWICH ANNUAL REPORT AND STATEMENT OF ACCOUNTS** _**YEAR ENDED 31 MARCH 2024**_ _________________________________________________________________________ |**Contents**|**Page**| |---|---| |List of Trustees and Officials|1| |Report of the Trustees|2 - 8| |Report of the Independent Auditors|9-10| |Consolidated Statement of Financial Activities|11| |Consolidated and Parent Charity Balance Sheets|12| |Consolidated Cash Flow Statement|13| |Notes to the Accounts|14 – 32| **GREAT HOSPITAL, NORWICH ANNUAL REPORT AND STATEMENT OF ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ The Trustees of the Great Hospital are: Mr J A Banham FCA CF Chairman Dr C A Singh MB ChB MRCGP DRCOG DCH Vice Chairman Mr F N Davey Mrs C Jeffries Dr P J Moxon Mr K J Revell Mr J P Stanley MA (Oxon) FCA Mr W J Walker BSc FRICS Ms G A Westwood Mr A J Yuill Dr T J Pestell (appointed 28 February 2024) Mr N Dillon Hatcher (appointed 28 February 2024) The Officers, Senior Managers and principal external advisors are: |Master and Chief Executive|Mrs G K Dormer| |---|---| |Clerk & Company Secretary|Mr D Chapman| |Executive Manager|Miss N S Tansley BA| |Office Manager|Mrs C Vargas (appointed 1 October 2022)| |Care Manager|Ms A M Johnson (resigned 14 June 2024)| |Estate Manager|Mr G Crisp| |Finance Manager|Mr I D Feltham MA (Oxon) ACA| |Chaplain|The Rev’d Canon E Langan| |Steward|Mr N F Saffell FRICS| |Principal Office|The Great Hospital| ||Bishopgate| ||Norwich| ||NR1 4EL| |Bankers|Barclays Bank Plc| ||5-7 Red Lion Street| ||Norwich| ||NR1 3QH| |Solicitors|Leathes Prior| ||74 The Close| ||Norwich| ||NR1 4DR| |Auditors|Larking Gowen LLP| ||1stFloor Prospect House| ||Rouen Road| ||Norwich| ||NR1 1RE| |Investment Managers|Rathbones (incorporating Investec Wealth and Investment)| ||30 Gresham Street| ||London| ||EC2V 7QN| 1 **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2024**_ The Trustees have pleasure in presenting their report and the financial statements for the year ended 31 March 2024. The purpose of these is to discharge the Trustees’ duty of public accountability and stewardship. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Trust Deed (the Scheme of Charity), the Accounting Direction for Private Registered Providers of Social Housing in England 2019 and with the 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) – (Charities SORP (FRS 102)). ## **Reference and administrative details of the Charity, its Trustees and Advisors** The Great Hospital, situated in Bishopgate in the City of Norwich, is an unincorporated association, founded in 1249 by Walter de Suffield, Bishop of Norwich. The Great Hospital is a Registered Charity (number 211953), governed by a Scheme of the Charity Commissioners dated 12 January 1983 (as amended by Schemes dated 2[nd] July 1996 and 15[th] January 2001). It is a Registered Social Landlord with the Regulator of Social Housing (number A0846) and also registered by the Care Quality Commission as a provider of Domiciliary Care. The Charity has significant endowments in the form of directly-owned property and financial instruments of various types which the Trustees and Master manage with the advice of professional advisors. The income is used for the purposes as specified in the Scheme of Charity. The names of the Trustees who have served during 2023/24 are set out on page 1, together with the names of Officers and Senior Managers of the Charity and external advisors. ## **Structure, governance and management** A Board of Trustees is responsible for the governance of the Great Hospital. Each Trustee is appointed by the Board of Trustees for a term of office of five years, after which period they may put themselves forward for reappointment. All Trustees must live within a radius of 25 miles of the Cathedral Church of Norwich when appointed. The Board of Trustees elects new Trustees who have the knowledge and experience to ensure that there is an appropriate skill mix to meet the needs of the Charity. New Trustees are required to complete an induction course which enables them to understand fully the aims and ethos of the Great Hospital and to help them to identify the risks, benefits and opportunities that exist. The full Board of Trustees meets quarterly. There are four other major Committees which meet quarterly: the Policy Committee, the Finance Committee, the Care Committee and the newly formed Fabric Committee. These Committees oversee all policy and investment matters pertaining to the operation of the Charity. The Committees’ meetings allow for effective input from Trustees in their particular area of expertise and for close working relationships with the senior management team. Each Committee Chairman reports to the full Trustee Board quarterly. Trustee training sessions are held annually and also when needed for specific requirements. The Policy Committee keeps this under review on a regular basis. Strategic reviews are conducted annually by the Policy Committee. Different aspects of the work of the Great Hospital are regulated by three external statutory bodies, the Charity Commission, the Regulator of Social Housing and the Care Quality Commission. Regulation by the Care Quality Commission ceased in June 2024 when the Great Hospital ceased providing regulated care. Historic England has formal oversight of the management of the heritage buildings which are of national and international significance and the Great Hospital is a member of the Almshouse Association. The Master has the delegated authority to manage the Charity within the terms of the Scheme of Charity and in accordance with agreed policies and budgets, which are approved by the various Committees and ratified at the Trustees’ plenary sessions. 2 **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2024**_ Salaries for the senior management team are set by the Master who monitors similar executive positions in the charity sector both locally and nationally. The Master’s (CEO’s) salary is determined by the Trustees, taking into account the skill set needed for the position and remuneration packages offered for similar appointments both locally and nationally. ## **Connected Charities** There are two connected Charities. They are Preachers' Charity (registered number 212127) and Sir Peter Seaman's Charity (registered number 311101). The Trustees of the Great Hospital are also Trustees of both of these Charities and both are managed by the Master of the Great Hospital in accordance with the various Schemes. The objects of the Preachers’ Charity are to distribute two-thirds of the Charity’s net income for the religious and other charitable work of the Dean and Chapter of Norwich Cathedral and the remaining one third for the benefit of the inhabitants of the City of Norwich. The City is defined as the electoral area of the City and the contiguous parishes of Old Catton, Sprowston, Thorpe St Andrew, Trowse with Newton, Cringleford, Colney, Costessey, Taverham, Drayton, Hellesdon and Horsham and Newton St Faiths. The Charity distributed £6,000 for the benefit of the inhabitants of the City of Norwich during the year ended 31 March 2024. The objects of the Sir Peter Seaman's Charity are to promote the education, including social and physical training, of young persons under the age of 21 living in the City of Norwich who, in the opinion of the Trustees, are in need of financial assistance. The City is defined as the electoral area of the City and the contiguous parishes of Old Catton, Sprowston, Thorpe St Andrew, Trowse with Newton, Cringleford, Colney, Costessey, Taverham, Drayton, Hellesdon and Horsham and Newton St Faiths. The Trustees distributed £4,291 in the year ended 31 March 2024. ## **Risk assessment and management** The Trustees have a formal risk management process to assess strategic, financial and operational risks and implement risk management strategies. This involves identifying the types of risks the Charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying appropriate means of managing the risks. The risk register is reviewed at least annually but more often if other risks to the organisation emerge. Key risks considered include the ongoing financial viability of the Great Hospital and operational risks relating to health and safety. The Great Hospital relies on a combination of resident contributions mostly funded from state benefits and returns from its investment portfolio in order to provide accommodation and services for its residents and preserve the fabric of its heritage buildings. A regular programme of refurbishment is carried out to ensure accommodation remains of an appropriate standard and provides value for money. Flexibility is maintained by the Great Hospital in the generation of investment returns from its adoption of a "total return" approach to investments allowing the portfolio of investments to be constructed to maximise returns within an acceptable level of risk. As a part medieval site with numerous steps and uneven surfaces accessed both by older residents and visitors, the Trustees and Managers are very conscious of potential health and safety hazards. Residents also have cooking facilities within their accommodation. The Great Hospital has therefore developed a comprehensive health and safety framework and culture led by the Master, supported by the Health and Safety Committee, with regular training for all employees as fire marshals and first aiders and regular risk assessments, safety checks and inspections. ## **Statement of responsibilities of the Board of Trustees** Charity 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 the affairs of the Charity and of the surplus or deficit 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 - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation 3 **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2024**_ 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 it to ensure that the financial statements comply with the Trust Deed (the Scheme of Charity), the Charities Act 2011, Schedule 1 to the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing in England 2019. They are also responsible for safeguarding the assets of the Charity and for taking appropriate measures to ensure the prevention and detection of fraud and other irregularities. ## **Public Benefit** In setting the objectives for the year, the Trustees have once again given careful consideration to the Charity Commission’s general guidance on public benefit and continue to be mindful of their responsibilities in this regard. The Great Hospital was originally founded to provide relief for the poor and needy of the City of Norwich through the provision of shelter and sustenance and the wellbeing and interests of the residents remain the primary focus. Further, the Trustees are fully committed to maintaining the unique and important set of medieval and other heritage buildings and continue to fund a significant programme of maintenance and refurbishment. ## **Charity’s Fundraising Work** The Trustees, the Master and the senior management team are clear about “who we are”, “what we do” and how donations are used. They respect the rights, dignities and privacy of the Great Hospital’s supporters and beneficiaries, and those of the connected Charities of Preachers' Charity and Sir Peter Seaman's Charity, and do not put undue pressure on a prospective donor to make a gift. If a prospective donor does not want to give, or wishes to cease giving, the decision will be respected entirely. Professional telephone or street fundraisers, or commercial participators, are not employed or otherwise engaged to carry out fundraising activities and nor does the Great Hospital, Preachers' Charity or Sir Peter Seaman's Charity directly approach members of the public. The Great Hospital, Preachers' Charity and Sir Peter Seaman's Charity comply with all relevant statutory regulations, including the Charities Act 2011, Data Protection Act 2018, the General Data Protection Regulation 2016/679 and the Privacy and Electronic Communications Regulations 2003. The Trustees, the Master and staff always seek to act in ways that are legal, open, honest and respectful. All complaints are managed in accordance with the Housing Ombudsman’s Complaint Monitoring Code. ## **Objects and activities** The ‘objects’ of the Great Hospital as set out in the Scheme of Charity are: ‘The provision and maintenance in the City of Norwich of the Parish Church of St Helen and of the almshouses known as the Great Hospital founded in accordance with the benevolent designs of King Edward the Sixth’. Eligibility for residency at the Great Hospital is in accordance with the Scheme of Charity and as detailed in the Admissions Policy. Applicants who satisfy the age criteria must be resident in the greater Norwich area (as defined in the Scheme), must be in need and would, in the view of the Trustees as advised by the Master, benefit from being a resident. Persons who are resident elsewhere but who have lived or worked in Norwich will also be considered. The ‘aims’ of the Charity are: 1. To preserve the fabric of the heritage building stock 2. Whenever possible, to provide a home for life for the residents in a secure and safe community 3. To continue to grow future investment income by investing endowment funds in appreciating assets as market conditions permit 4. To use the heritage assets to generate revenue and to be accessible to the public at large while acknowledging the sensitivity of the site and the wishes of the residents who live on it Each year the Trustees review the objectives and activities to ensure they continue to reflect the aims. As noted earlier, in carrying out this review the Trustees have considered the Charity Commission’s general guidance on public benefit and have also assessed the outcomes in terms of value for money. 4 **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2023**_ To help achieve a long-term financially viable future for the charity, the Great Hospital ceased the provision of regulated care from June 2024. All residents receiving care from the charity were supported to access care on the site from third party care providers. While the care team members were made redundant, the Great Hospital established a small resident engagement team to continue to support our residents’ welfare needs. A full programme of resident events took place in 2023/24 including: - The bowls match between residents and trustees - The summer tea party - Remembrance Day service - The Christmas carol service - The residents Christmas lunch The Great Hospital invested in new equipment and building improvements during 2023/24 and subsequently to ensure the security and fire safety of our residents and to maintain our many heritage buildings. Work has continued on the redevelopment of Elaine Herbert House. The incoming mains services have been established for the new building and archaeological work has been undertaken. A main contractor has been appointed and a contract for the construction has been signed. The initial construction work has now commenced. Grant funding toward the cost of the building has been secured with Homes England and a grant agreement has been signed. Construction work will continue through 2024 and 2025. This exciting development will create a further 25 units of accommodation. ## **Overview of the accounts** ## **Summary** The Great Hospital achieved an occupancy level of 95.6% in the financial year against a target of 95% and this has resulted in net expenditure before gains and losses for the year of £582,776 (2023: £529,900) with a 7.5% increase in income to £2,318,598 and a 8.0% increase in expenditure to £2,901,374. The Charity’s actual performance is being measured against the budget on a monthly basis and any variances against the budget are investigated to improve efficiency and performance. In accordance with its charitable and strategic objectives, the Great Hospital maintains, repairs and improves the buildings on its site and seeks to provide enhanced accommodation for the benefit of its residents. It has achieved savings and greater value for money from procuring services from alternative suppliers and in reviewing its working practices. It has introduced regular tendering procedures for procurement where they did not exist and is implementing a long-term plan for investment in more efficient energy provision to realise cost savings, environmental benefits and increased comfort for residents, including heating installations and improvements in thermal efficiency. The total net assets of the Charity increased by 0.4% to £34,343,867. ## **Investment policy** The Trustees have the power to administer and manage the assets of the Charity. The Trustees have delegated the management of its investment portfolio of stocks and shares to Rathbones (incorporating Investec Wealth and Investment), a firm of independent investment managers. Investment returns are a critical source of funding both in respect of the provision of services to residents and in terms of the maintenance of the heritage buildings. Trustees agree a target real rate of return (over and above the return required to maintain the inflation adjusted value of the Endowment Fund) with Investec Wealth and Investment Limited’s Investment Managers based on their expert view of potential future returns. The benchmark portfolio recognises the Great Hospital's long-term investment horizon and risk appetite. In the year to 31 March 2024 the financial investments portfolio achieved a total return of 8.69% before investment management fees compared to a benchmark return of 8.78%. The Trustees have also delegated the day to day management of its property portfolio to Brown & Co – Property and Business Consultants LLP, a firm of independent Chartered Surveyors. Brown & Co have been instructed to maximise the rental income from properties, reporting to the Master and Trustees as necessary, and also to advise the Trustees of any new investment opportunities. 5 ## **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2023**_ ## **Total Return policy** The Trustees continue to take advice from their investment advisors on expected long term real rates of return from the investment portfolio. The advice takes into consideration a number of factors including the construction of the Charity’s investment portfolio, the position in the investment cycle and the outlook for inflation. The total return approach enables the Trustees to decide each year how much of the unapplied total return is transferred to income funds and is available for expenditure. To determine the transfer each year the Trustees review the balance of the unapplied total return, the latest view from Investec Wealth and Investment Limited on sustainable real returns and the operational requirements of the Charity. Further information is disclosed in note 23. Following this review a provisional allocation to income funds is set for budgeting purposes and performance is monitored on a quarterly basis during the financial year. The actual allocation to income funds for the year is confirmed at the final Finance Committee meeting each financial year. During the year ended 31 March 2024 the Trustees reviewed the performance of the investment portfolio in order to satisfy themselves that the current levels of transfer remained sustainable. ## **Reserves policy** The Great Hospital aims to hold around £500,000 in cash at bank as working capital, representing 3 months worth of expenditure. The balance at 31 March 2024 was £508,971 (2023: £658,501). It is not considered necessary to hold cash at a higher level as the Total Return Approach to investment management means additional funds can be transferred from the Endowment Fund as and when required. The Endowment Fund stood at £26,129,360 at 31 March 2024. Under the Total Return Approach, the entirety of the Endowment Fund can be utilised for the benefit of current and future beneficiaries other than an amount of £5,091,310 known as the Investment Fund, representing the value of original donations. ## **Assets** The overall value of the Charity’s net assets on 31 March 2024 was £34,343,867. Fixed and current assets are as set out in the balance sheet. The value of the Charity’s non-property investments other than those held as cash deposits was £19,475,826. The investment property portfolio, which comprises residential, commercial and agricultural land and buildings, was formally valued as at 31 March 2024 at £5,385,024 by the Great Hospital’s investment property advisers Brown & Co Property and Business Consultants LLP (note 15). In view of the Charity’s substantial investments and assets the Trustees consider there is no material uncertainty in relation to the going concern assessments. ## **Value for money** In accordance with the Great Hospital’s charitable purpose, in particular its obligation to maintain the accommodation occupied by residents and the other buildings on its site, the Charity’s operational expenses are subsidised from the return on its capital funds and investments. The value of that subsidy in the current financial year amounts to £1,131,801 (2023: £1,001,722) (operating deficit from Social Housing operation), which is 39.0% (2023: 41.8%) of the total expenditure incurred. The Trustees intend to benefit the residents in future years by increasing the value of the services they receive, achieved through continued monitoring and scrutiny of operational expenses across the Charity. In April 2018, the Regulator introduced a new Value for Money Standard in order to measure economy, efficiency and effectiveness. Due to the unique nature of the Charity’s operations, and the way housing activities are financed, it is not possible to make meaningful comparisons with an appropriate peer group. 6 ## **GREAT HOSPITAL, NORWICH REPORT OF THE TRUSTEES** _**YEAR ENDED 31 MARCH 2023**_ The Value for Money metrics set out below show how the Great Hospital had performed since the introduction of the standard. ## **Metrics and Basis** |||**2024**|**2023**| |---|---|---|---| |**1.**|**Reinvestment**|6%|8%| |||________|________| ||The metrics looks at the Investment in properties both new and existing||| ||as a percentage of the value of total properties held.||| |**2.**|**New Supply Delivered**|-|-| |||________|________| |**3.**|**Gearing**|-5%|-8%| |||________|________| ||This metric assesses how much of the assets are made up of debt and||| ||the degree of dependence on debt finance.||| |**4.**|**Earnings before interest, tax, depreciation, amortisation, major**||| ||**repairs included (EBITDA MRI) Interest Cover**||| |||**3,456%**|**-11,327%**| |||________|________| ||This is a key indicator for liquidity and investment capacity.||| |**5.**|**Headline Social Housing cost per unit**|£25,442|£22,594| |||________|________| ||This metric assesses the headline social housing cost per unit||| ||as defined by the Regulator.||| |**6.**|**Operating Margin**||| ||This metric measures profitability, and is a way of measuring||| ||the financial efficiency of a business.||| |**Operating Margin (A)**||-71%|-72%| |||________|_______| |**Operating Margin (B)**||-25%|-25%| |**7.**|**Return on Capital Employed**|0.4%|-5%| |||________|_______| |This|metric measures the efficiency of investment of||| |capital resources.|||| 7 ## ## **Independent auditors’ report to the Trustees of the Great Hospital** ## **Opinion** We have audited the financial statements of The Great Hospital (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2024 which comprise the Report of the Trustees, Consolidated Statements of Financial Activities, Consolidated and Parent Charity Balances Sheets, Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 March 2024, and of the group’s incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 doubt on the Group’s or the parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - sufficient accounting records have not been kept; or - the parent charity’s financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion: - a satisfactory system of control over transactions has not been maintained. 9 Independent auditors, report to the Trustees crf the Great Hospital Rasponsobllltles ol trustees As explained more fully in the trustees. respongbilth"e5 Statement set Crtrt page 3. the trustees are responsible lor the preparation of financial statements whid) give a true and fair view. and for such ir*emal contrc4 as the trustees deterrnine Is ne￿SSary to enable the preparatun of fin8rv81 statwnents that are free from material misstatement. whether due to fraud or error. In preparing the finarrial statetnents. IIE trustees are respcrrible fcrf assewng the group's and pwent charily's ability to continu8 as a going ￿￿[n. di5cI(Bing. as applKable. matt￿$ related to w"rKJ corteffl and U￿n9 the going ￿cern basis of awounting unkss the trustees either intend to 14uKlate the group tx par￿1 itsrity ￿ to ￿ase qHalior6, or have no realisbc alternatsve but to do so. Auditor's respomibl￿I1èS forthe audit of the financial slatements We have been appointed as auditc* utxlei se(￿on 144 of the charib.es Ad 2011 and s￿tIOn 136 01 the HousirvJ and Regeneration Act 2008 arKJ report in acC￿d8[￿e with r&Juk*ions m&Ye ￿ty'on 154 ofthe Charrties Acl 2011 and sethon 137 ofthe H￿SIng and Regeneration 2(K)8 Irregulgrft￿ ndLK%ing fr￿d, we nstms d rthC(M￿￿K￿vth rWrB ￿ <Èsw prcwlw n IrEwth res[￿&bIl￿.e$, Xrdin￿1alXjVe.t0d*a [￿￿￿MiSSIa1￿￿M[￿ofIrregukrthe$. inthd￿g fraud. The extent toMthIth ourpr0￿dure$ are capalSe of detecting irreguLanties. IrKluding fraud is detaiknl beluw. We Èwuwed of the TrLL8tees atoA their own idenbfKab"on aThJ assessment Oft￿ nsks of irregularities. Vve rthfred atyK31 w(Kthto LfENotes
Fund
£
**Income and endowments from:**
_Donations and legacies_
2
1,838
_Income from charitable activities:_
Contributions from residents
3
1,593,913
_Other trading activities:_
Functions
3,073
_Investments:_
Property Income
4
-
Interest and investment income
10
-
_Other income_
11
16,835
_________
**Total income and endowments**
1,615,659
_________
**Expenditure on:**
_Cost of raising funds:_
Investment management costs
5
-
_Expenditure on charitable activities:_
Services
6
1,862,404
Management
7
314,351
Maintenance
8
312,063
Depreciation
9
275,803
_Other expenditure_
4,504
_________
**Total expenditure**
2,769,125
_________
**Net income / (expenditure) before**
**gains and losses on investments**
(1,153,466)
_________
Net gains / (losses) on investments 15&16
-
_________
**Net income / (expenditure)**
(1,153,466)
_________
**Transfers between funds**
23&24
1,088,000
_________
Net movement in funds
(65,466)
_________
**Reconciliation of funds:**
Total funds brought forward
8,923,270
_________
**Total funds carried forward**
8,857,804
|Restricted
Endowment
Fund
Fund
£
£
-
-
-
-
-
-
-
207,538
-
495,401
-
-
_________
_________
-
702,939
_________
_________
-
115,145
-
-
-
-
-
-
17,104
-
-
-
_________
_________
17,104
115,145
_________
_________
(17,104)
587,794
_________
_________
-
735,271
_________
_________
(17,104)
1,323,065
_________
_________
-
(1,088,000)
_________
_________
(17,104)
235,065
_________
_________
461,807
24,806,295
_________
_________
444,703
25,041,360

|**2024**
**Total**
**£**
**1,838**
**1,593,913**
**3,073**
**207,538**
**495,401**
**16,835**
_________
**2,318,598**
_________
**115,145**
**1,862,404**
**314,351**
**312,063**
**292,907**
**4,504**
_________
**2,901,374**
_________
**(582,776)**
_________
**735,271**
_________
**152,495**
_________
-
_________
**152,495**
_________
**34,191,372**
_________
**34,343,867**
|2023
Total
£
57,102
1,395,937
1,394
222,074
455,175
25,426
_________
2,157,108
_________
186,236
1,317,097
573,615
322,827
286,538
695
_________
2,687,008
_________
(529,900)
_________
(1,303,551)
_________
(1,833,451)
_________
-
_________
(1,833,451)
_________
36,024,823
_________
34,191,372
| |---|---|---|---| 11 GREAT HOSPITAL. NORWICH BALANCE SHEET AS A T31 MARCH 2024 Consolhjatwl Parerrt Charity 2024 2￿23 2￿23 Flx•d assats H￿sing A550aab"(M) SdErrE Equiprnent Improvwnents lo Great H(6P"tal buiklirwJs Property in the o)LYse ol constru(*" Investment FYop*tiès Investments Programme reL*d iwethenl 660.793 616.163 14a8b 4803,666 14a&b 1,238,rA)8 15 5.385,024 1&V2 19A75,826 17 660,793 616,163 s,￿3,666 7,343 5.385,024 19,47S,827 1,099,000 686.208 640,334 7,023,531 7.343 5,776,524 18,791,692 749.(XKJ 7.￿23,531 694.389 S.TK6,524 18.7￿.￿1 34179,480 33,615.677 34.047,816 33,677,632 Current ass•ts Sto Debt￿S weFOym&￿S Cash at bank and In ha Ca%h held by investmwrt trokers 18 19 8.T19 219,982 508,970 7,531 278,298 &58.￿)1 187, 8,TT9 206, 492,(rfM 44902 7,531 266,713 525.439 187,636 781633 1.131. 7S1489 987.319 Less". Credltors.. Amounts falling duè thin orE year 1527.680) 1464,9351 1354.1991 1374,2111 Net current assets 254.953 e67.031 391290 613, 108 Total assets less current liablities 34.434,433 34.28171 34,44&106 34,2￿.740 Less.. Creditors: Am(￿ntS falling after (Th ye 21 [￿.566) 191,3 190.5661 191.3 Total net assets 34,341867 34,191.372 34,355,540 34.199,404 Reprt8ent￿ by". The funits ofthè charity.. Endowment fund Restricted fuTrY In(y)me fund lU￿estric￿dI 23 24 24 25.041.360 444,703 &857.804 24,￿,295 461.PKJ7 8.¥23.270 25,041.360 444,703 8,869,477 24,8(￿.2 461,807 8,931,3tr2 34.343,867 34.191,372 34,355.540 34,1￿.4￿7 The financial statemerts on pages 11 to 32wwe a[￿￿1 ty Ihe Bcord d Truaees arnl Here on ￿Er behaff by. MF J A B8nhwn MrA J Yuill 2024_ TtE Th)tes on pw 14 to 32 Icmi part ofthw frn8rKxal 12 ## **GREAT HOSPITAL, NORWICH CONSOLIDATED CASHFLOW STATEMENT,** _**AS AT 31 MARCH 2024**_ |||**2024**||**2023**|| |---|---|---|---|---|---| |||**£**||**£**|| |**Net cash outflow from operating activities (see below)**||(863,413)||(874,333)|| |||________||________|| |**Cash Flows from investing activities**|||||| |Interest, dividends and rents received||702,939||677,249|| |Purchase of fixed assets||(567,077)||(705,425)|| |Investment property transactions||-||-|| |Proceeds from sale of investments property||-||301,559|| |Proceeds from sale of investments||5,392,730||4,303,865|| |Purchase of investments||(4,956,674)||(5,063,931)|| |||________||________|| |**Net cash provided by investing activities**||571,918||(486,683)|| |||________||________|| |**Cash flows from financing activities**|||||| |Repayment of borrowing||(770)||(771)|| |||________||________|| |**Net cash provided by financing activities**||(770)||(771)|| |||________||________|| |**Change in cash and cash equivalents in the year**||(292,265)||(1,361,787)|| |Cash and cash equivalents brought forward||846,137||2,207,924|| |||________||________|| |**Cash and cash equivalents carried forward**||553,872
________||846,137
________|| |**Reconciliation of net income to net cash outflow from operating activities**|||||| |||**2024**||**2023**|| |||**£**||**£**|| |**Net income / (loss)**||152,495||(1,833,451)|| |||________||________|| |Interest, dividends and rents received||(702,939)||(677,249)|| |(Gains)/Losses on investments||(725,689)||1,305,565|| |Depreciation||292,907||286,540|| |Decrease / (increase) in debtors||58,316||(38,804)|| |Decrease / (increase) in stock||(1,248)||(287)|| |Increase / (decrease) in creditors||62,745||83,353|| |||________||________|| |**Net cash outflow from operating activities**||(863,413)||(874,333)|| |||________||_______|| |**Analysis of changes in cash and cash equivalents:**|**1 April 2023**|Cash flows||3**1 March 2024**|| ||**£**||**£**||**£**| |Cash at bank and in hand|658,501|(149,531)||508,970|| |Cash held by investment brokers|187,636|(142,734)||44,902|| ||_______|_______||_______|| |Total|846,137
_______|(292,265)
_______||553,872
_______|| The notes on pages 14 to 32 form part of these financial statements 13 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS** _**YEAR ENDED 31 MARCH 2024**_ ## **1. Accounting Policies** ## **a) Basis of accounting** The accounts are prepared under the historical cost convention, modified to include the revaluation of certain fixed assets. The Housing SORP 2014 requires any almshouse that is not governed by the Landlord and Tenant Act 1985, and operates predominantly for charitable purposes, to adopt the Charities SORP when preparing its financial statements. The Great Hospital is a registered almshouse (membership number 333), and meets the other listed conditions and has therefore prepared the financial statements is 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 (FRS102) issued on 16 July 2014, the accounting requirements of the Accounting Direction for Private Registered Providers of Social Housing 2019 and with charity law. The Great Hospital meets the definition of a public benefit entity under FRS 102. Preparation of the financial statements require management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: useful economic lives of tangible assets - the annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reassessed annually. See note 14 for the carrying amount of property, plant and equipment and note 1 (f) and (i) for the useful economic lives for each class of assets; investment property valuations - the treatment of investment property is explained in note 1 (g) and the carrying value can be found in note 15. The most significant area of uncertainty that affects the future value of the charity’s assets is the performance of the property and listed investment market. ## **b) Consolidation** Under statute group financial statements are required. These consolidate the Charity and its subsidiary TGH (Commercial) Limited. ## **c) Income and Expenditure** All income is recognised once the group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required 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. ## **d) 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. ## **e) Fixed assets - Housing Association scheme properties** Properties included under Housing Association scheme properties are stated at cost less depreciation which includes the following: i Cost of acquiring land and buildings ii Development expenditure iii Interest charged on the mortgage loans raised to finance the scheme, including notional interest. Interest on the mortgage loan financing the development is capitalised up to the relevant date of interim SHG payment, (see note 1j). Interest on the residual mortgage loan after this date is charged to the Statement of Financial Activity. 14 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **f) Fixed assets - Great Hospital buildings** Buildings and improvements to buildings are shown at cost and depreciated over the estimated useful life of the asset, as follows: Improvements to buildings - 50 years (2% straight line) - other than for additions below: Housing Association properties - 50 years (2% straight line) Assets in the course of construction are not depreciated The Trustees have considered the application of component accounting and have depreciated improvements to building additions on the following basis: Main fabric - 100 years Roof - 75 years Mechanical installations - 50 years Electrical installations - 30 - 40 years Windows and Doors - 30 years Kitchen installation - 15 years Lift installation - 20 years Shower installation - 15 years Fittings and furnishings - 15 years ## **g) Fixed assets - investment properties** A triennial valuation of investment properties at open market value is provided by Brown & Co - Property and Business Consultants LLP. In the intervening periods, investment property valuations are updated based on professional advice provided to the Trustees by Brown & Co – Property and Business Consultants LLP. The review conducted by the Great Hospital’s advisors on behalf of the Trustees for the purpose of the interim valuation does not give rise to a formal valuation. ## **h) Heritage assets - Historical Bishopgate property** The Great Hospital maintains a collection of historic buildings at Bishopgate, Norwich, including the medieval church and cloisters. These have been acquired since the Charity was founded in 1249, and have no historic cost. The Trustees feel that owing to the incomparable nature of the buildings, conventional valuation lacks sufficient reliability and that, even if valuations could be obtained, the costs would be onerous compared with the additional benefits derived by the Charity and users of the accounts. As a result, no value is reported for these assets in the Charity’s accounts. The cost of associated major maintenance and refurbishment is reported in the Statement of Financial Activity in the year it is incurred. Further information is given in Note 14c to the accounts. ## **i) Fixed assets - Other assets** Other assets are depreciated over a period of 3-10 years on a straight-line basis. ## **j) Investments - Other 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 activity includes the net gains and losses arising on revaluation and disposals throughout the year. 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 within particular sectors or sub sectors. Programme related investments are carried at the amount invested less any impairments. 15 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **k) Social Housing Grants** Social Housing Grants (SHG) are made by the Housing Association and are utilised to reduce the amount of mortgage loan in respect of an approved scheme to the amount which it is estimated can be serviced by the net annual income of the scheme. The amount of SHG is calculated on the qualifying costs of the scheme in accordance with instructions issued from time to time by the Regulator of Social Housing. Where developments have been financed wholly or partly by SHG, the SHG is recognised in income when the charity has entitlement to it. SHG are repayable under certain circumstances, primarily following the sale of a property. Provision for repayment is made in the balance sheet when properties, which have SHG funding, are sold. ## **l) Fund accounting** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Restricted funds are those funds that can only be used for particular restricted purposes. Restrictions arise when specified by the donor or when funds are raised for particular restrictive purposes. Following an application to the Charity Commission the Great Hospital moved to a total return approach to accounting for investments from 1 April 2013. ## **m) Pension scheme** The Great Hospital operates defined contribution pension schemes for members of staff of the Charity. The pension costs charged to the Statement of Financial Activity represents the employer’s contributions payable under the rules of the schemes. ## **n) Stock** Stocks are carried at the lower of cost and net realisable value. ## **o) Going concern** The charity has generated sufficient financial resources from its activities to allow the Trustees to believe that the charity is well placed to manage its operational risks successfully in the current economic climate. Accordingly, the Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. ## **p) Cash at bank and in hand** Cash at bank and cash 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. ## **q) Creditors** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Short term creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Other financial liabilities are measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. ## **r) Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Other receivables are measured initially at fair value, net of transaction costs, and are measured subsequently as amortised cost using the effective interest method, less any impairment. If settlement of debt is deferred, the consideration is discounted at an appropriate interest reflecting the financing transaction involved. 16 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **2. Income from Donations and Legacies** |||**Regulated Social**|**Unregulated**|**Total**|**Total**| |---|---|---|---|---|---| |||**Housing Activities**|**Activities**|**2024**|**2023**| |||**£**|**£**|**£**|**£**| ||Donations|-|1,838|**1,838**|57,102| |||_________|__________|_________|_________| |||-|1,838|**1,838**|57,102| |||_________|__________|_________|_________| |**3.**|**Social Housing Income and Expenditure**||||| ||Accommodation charge|1,033,241|-|**1,033,241**|945,157| ||Service charges (see below)|560,672|-|**560,672**|450,780| |||_________|__________|_________|_________| ||Contribution from Residents|1,593,913|-|**1,593,913**|1,395,937| |||_________|__________|_________|_________| ||Social housing operating costs|(2,725,714)|-|**(2,725,714)**|(2,397,659)| |||_________|__________|_________|_________| ||Operating deficit|(1,131,801)|-|**(1,131,801)**|(1,001,722)| |||_________|__________|_________|_________| ||Void losses|(54,284)|-|**(54,284)**|(55,029)| ||**Service Charges**||||| ||Gas and Electricity|177,590|-|**177,590**|140,856| ||Care service|164,692|-|**164,692**|141,652| ||Catering|123,355|-|**123,355**|94,856| ||Cleaning|95,035|-|**95,035**|73,416| |||_________|__________|_________|_________| |||560,672|-|**560,672**|450,780| |||_________|__________|_________|_________| 17 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ |||**Regulated Social**|**Unregulated**|**Total**|**Total**| |---|---|---|---|---|---| |||**Housing Activities**|**Activities**|**2024**|**2023**| |||**£**|**£**|**£**|**£**| |**4.**|**Property income**||||| ||Investment properties|-|207,538|**207,538**|222,074| |||_________|__________|_________|_________| ||**Expenses**||||| ||Agent’s commission|-|(9,236)|**(9,236)**|(9,798)| ||Professional fees|-|(12,729)|**(12,729)**|(3,193)| ||Repairs etc|-|(15,242)|**(15,242)**|(92,094)| |||_________|__________|_________|_________| ||Net income from investment properties|-|170,331|**170,331**|116,989| |||_________|__________|_________|_________| |**5.**|**Cost of managing investments**||||| ||Property agent’s commission|-|9,236|**9,236**|9,798| ||Professional fees|-|12,729|**12,729**|3,193| ||Repairs etc|-|15,242|**15,242**|92,094| ||Investment managers fees|-|66,582|**66,582**|69,289| ||Irrecoverable VAT|-|11,356|**11,356**|11,862| |||_________|__________|_________|_________| |||-|115,145|**115,145**|186,236| |||_________|__________|_________|_________| |**6.**|**Services**||||| ||Staff costs|1,408,999|-|**1,408,999**|904,924| ||Food|68,848|-|**68,848**|86,779| ||Energy|221,915|-|**221,915**|147,073| ||Laundry and cleaning|21,534|-|**21,534**|28,075| ||Water and council tax|27,402|-|**27,402**|21,586| ||Amenities|3,267|-|**3,267**|10,119| ||Care consumables|393|-|**393**|1,543| ||Irrecoverable VAT|110,046|-|**110,046**|97,596| |||_________|_________|_________|_______| |||1,862,404|-|**1,862,404**|1,297,695| |||_________|_________|_________|_______| |**7.**|**Management**||||| ||Administration|165,377|-|**165,377**|132,933| ||Staff costs|16,538|876|**17,414**|325,103| ||Insurance|76,425|55,135|**131,560**|115,579| |||_________|_________|_________|_________| |||258,340|56,011|**314,351**|573,615| |||_________|_________|_________|_________| 18 ## **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ |||**Regulated Social**|**Unregulated**|**Total**|**Total**| |---|---|---|---|---|---| ||**Housing Activities**||**Activities**|**2024**|**2023**| |||**£**|**£**|**£**|**£**| |**8.**|**Maintenance**||||| ||Building maintenance|312,063|-|**312,063**|322,827| |||_______|__________|________|_______| |**9.**|**Depreciation**||||| ||Housing Association scheme properties|25,415|-|**25,415**|8,311| ||Equipment|47,628|-|**47,628**|41,297| ||Improvements to Great Hospital buildings|219,864|-|**219,864**|236,930| |||_______|__________|_______|_______| |||292,907|-|**292,907**|286,538| |||_______|__________|_______|_______| |**10.**|**Interest and investment income receivable**||||| ||Securities interest|-|493,964|**493,964**|454,807| ||Deposit interest receivable|-|1,437|**1,437**|368| |||_______|__________|_______|_______| |||-|495,401|**495,401**|455,175| |||_______|__________|_______|_______| |**11.**|**Other income**||||| ||Sundry income|-|16,570|**16,570**|-| ||Booklet sales|-|265|**265**|160| |||_______|__________|_______|_______| |||-|16,835|**16,835**|160| |||_______|__________|_______|_______| **12. Taxation** The Great Hospital is a registered Charity within the meaning of the Taxes Act and is, therefore, eligible to claim certain exemptions to income tax and capital gains tax. As a consequence no charge to taxation arises for the year. |**13.**|**Surplus after interest**|**2024**|**2023**| |---|---|---|---| |||**£**|**£**| ||The net income before gains and losses is stated||| ||after charging / (crediting):||| ||Interest payable|12,887|13,657| ||Depreciation|292,907|286,538| ||Auditors remuneration – audit|23,370|21,840| ||Auditors remuneration – non audit services|375|1,189| 19 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **14a. Fixed Assets - Group** ||**Housing Assoc.**|||**Property in**|| |---|---|---|---|---|---| ||**Scheme**|**Building**||**the course of**|| ||**Properties**|**Improvements**|**Equipment**|**construction**|**Total**| ||**£**|**£**|**£**|**£**|**£**| |Cost|||||| |At 1 April 2023|1,270,755|9,489,232|1,053,426|694,389|12,507,802| |Additions|-|-|23,458|543,619|567,077| ||________|________|________|________|________| |At 31 March 2024|1,270,755|9,489,232|1,076,884|1,238,008|13,074,879| ||________|________|________|________|________| |Depreciation|||||| |At 1 April 2023|584,547|2,465,702|413,093|-|3,463,342| |Charge for the year|25,415|219,864|47,628|-|292,907| ||________|________|________|________|________| |At 31 March 2024|609,962|2,685,566|460,721|-|3,756,249| ||________|________|________|________|________| |Net book value|||||| |At 31 March 2024|660,793|6,803,666|616,163|1,238,008|9,318,630| ||||||| ||________|________|________|________|________| |At 31 March 2023|686,208|7,023,530|640,333|694,389|9,044,460| ||________|________|________|________|________| The ancient Great Hospital buildings at Bishopgate, Norwich have not been valued (note 14c) and have an historical cost of £nil, with the cost of improvements to date shown above. A construction project commenced in previous financial years, this project is reflected as an asset in the course of construction. 20 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **14b. Fixed Assets – Parent Charity** ||**Housing Assoc.**|||**Property in**|| |---|---|---|---|---|---| ||**Scheme**|**Building**||**the course of**|| ||**Properties**|**Improvements**|**Equipment**|**construction**|**Total**| ||**£**|**£**|**£**|**£**|**£**| |Cost|||||| |At 1 April 2023|1,270,755|9,489,232|1,053,426|7,343|11,820,756| |Additions|-|-|23,458|-|23,458| ||________|________|________|________|________| |At 31 March 2024|1,270,755|9,489,232|1,076,884|7,343|11,844,214| ||________|________|________|________|________| |Depreciation|||||| |At 1 April 2023|584,547|2,465,702|413,093|-|3,463,342| |Charge for the year|25,415|219,864|47,628|-|292,907| ||________|________|________|________|________| |At 31 March 2024|609,962|2,685,566|460,721|-|3,756,249| ||________|________|________|________|________| |Net book value|||||| |At 31 March 2024|660,793|6,803,666|616,163|7,343|8,087,965| ||||||| ||________|________|________|________|________| |At 31 March 2023|686,208|7,023,530|640,333|7,343|8,357,414| ||________|________|________|________|________| The ancient Great Hospital buildings at Bishopgate, Norwich have not been valued (note 14c) and have an historical cost of £nil, with the cost of improvements to date shown above. A construction project commenced in previous financial years, this project is reflected as an asset in the course of construction. 21 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **14c. Heritage assets not recognised in the balance sheet** The Great Hospital maintains a collection of historic buildings at Bishopgate, Norwich, including the medieval church and cloisters. These have been acquired since the Charity was founded in 1249 and have no historic cost. There have been no acquisitions or disposals of heritage assets. The Charity is committed to maintaining these unique and important buildings and continues to fund a significant programme of maintenance and refurbishment. ## **15. Investment properties - Group and Charity** |**Investment properties - Group and Charity**||| |---|---|---| ||**2024**|**2023**| ||**£**|**£**| |Valuation||| |1 April 2023|**5,776,524**|6,138,524| |Disposals|**-**|(301,559)| |Additions|**-**|-| |Realised gain on disposal|**-**|21,559| |Gain / (loss) on revaluation|**(391,500)**|(82,000)| ||________|________| |31 March 2024|**5,385,024**|5,776,524| ||________|________| |Classification of properties||| |Residential Estate|**736,500**|703,000| |Commercial holdings|**3,985,000**|4,410,000| |Agricultural holdings|**663,524**|663,524| ||________|________| ||**5,385,024**|5,776,524| ||________|________| A formal valuation of investment properties was carried out at 31 March 2024 by Brown & Co Property and Business Consultants LLP, a firm of independent chartered surveyors, on behalf of the Trustees in accordance with the accounting policy set out in note 1g. A formal valuation of investment properties is carried out at least every three years. 22 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **16. Investments** |Government stock
Ordinary shares
Fixed interest
Other assets
Total
**Un-quoted investments**
Shares in TGH (Commercial) Ltd
Grand total - Charity|**2024**
**2024**
**Cost**
**Market value**
**£**
**£**
**1,022,927**
**1,006,142**
**9,769,136**
**13,261,853**
**2,318,024**
**2,306,352**
**2,967,620**
**2,901,479**
_________
_________
**16,077,707**
**19,475,826**
_________
_________
**1**
**1**
_________
_________
**16,077,708**
**19,475,827**

|**2023**
**2023**
**Cost**
**Market value**
**£**
**£**
389,826
344,694
9,344,344
12,244,951
3,072,186
3,046,200
2,967,620
3,158,846
_________
_________
15,773,976
18,794,691
_________
_________
1
1
_________
_________
15,773,977
18,794,692

| |---|---|---| TGH (Commercial) Limited is a 100% subsidiary and a property construction company that has expanded its activities to include the provision of hospitality. TGH (Commercial) Limited has been engaged by the Great Hospital to design and build new accommodation for residents. The results of the subsidiary company to 31 March 2024 are set out in note 29. |**Movements in quoted investments**
Market value 1 April 2023
Additions
Disposals
Net investment gains / (losses)
Market value 31 March 2024|**2024**
**£**
**18,794,691**
**4,956,674**
**(5,392,730)**
**1,117,191**
**_________**
**19,475,826**
|**2023**
**£**
19,279,749
5,063,931
(4,303,865)
(1,245,124)
**_________**
18,794,691
| |---|---|---| All investments are included within the accounts at their current market value, 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 (FRS102) Net investment gains / (losses) comprise realised losses of £10,707 (2023: losses of £251,178) and unrealised gains of £1,127,898 (2023: losses of £993,947) 23 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **17. Programme related investment** |**Charity**
**2024**
Loan to TGH (Commercial) Limited
**£**
Balance at 1 April 2023
**749,000**
Additional loan
350,000
_______
Balance as at 31 March 2024
**1,099,000**
|**2023**
**£**
179,000
570,000
_______
749,000
| |---|---| A loan has been made to TGH (Commercial) Limited, the Charity’s subsidiary. TGH (Commercial) Limited has been engaged by the Charity to design and build new accommodation for its residents. ## **18. Stock** |**Group**
**2024**
**2023**
**£**
**£**
Food and beverages
**7,816**
6,509
Booklets
**963**
1,022
_______
_______
**8,779**
7,531
_______
_______
**Debtors**
**Group**
**2024**
**2023**
**£**
**£**
Prepayments and accrued income
**35,977**
135,451
Other debtors
**148,310**
115,158
Residents’ contributions receivable
**35,695**
27,689
_______
_______
**219,982**
278,298
_______
_______
**Creditors: amounts falling due within one year**
**Group**
**2024**
**2023**
**£**
**£**
Trade creditors
**159,256**
252,859
Taxation and social security
**31,196**
28,204
Accruals and deferred income
**331,384**
183,875
Other creditors
**5,844**
-
_______
_______
**527,680**
464,935

|**Charity**
**2024**
**2023**
**£**
**£**
**7,816**
6,509
**963**
1,022
_______
_______
**8,779**
7,531
_______
_______
**Charity**
**2024**
**2023**
**£**
**£**
**35,977**
135,451
**135,132**
103,573
**35,695**
27,689
_______
_______
**206,804**
266,713
_______
_______
**Charity**
**2024**
**2023**
**£**
**£**
**146,417**
223,810
**31,196**
28,204
**170,742**
122,197
**5,844**
-
_______
_______
**354,199**
374,211

| |---|---| ## **19. Debtors** ## **20. Creditors: amounts falling due within one year** 24 **GREAT HOSPITAL, NORWICH** **NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **21. Creditors: amounts falling due after more than one year - Group and Charity** |Housing Association schemes (see below)
Housing Association Schemes
Balances at beginning of year
Less capital due within one year
**Balances at end of year**
Balance included above repayable by
instalments in more than five years
Rate of interest payable|**2024**
**£**
90,566
______
90,566
______
**Prior**
**Youngs**
**Court**
**Green**
**£**
**£**
44,838
46,498
(450)
(320)
______
______
44,388
46,178
______
______
42,138
44,578
______
______
15%
14%

|_|**2023**
**£**
91,336
______
91,336| |---|---|---|---| |||_|______
**Total**
**£**
**91,336**
**(770)**
______
**90,566**| ||||______
**86,716**| ||||______| All the schemes have been completed. The loan relating to Prior Court is repayable over 60 years from 1 February 1980. The loan relating to Youngs Green is repayable over 60 years from 1 January 1983. Interest payable on the loans during the year ended 31 March 2024 amounted to £12,887 (2023: £13,657). 25 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **22. Financial Instruments** |**Financial Instruments**||||| |---|---|---|---|---| |||**Group**||**Charity**| ||**2024**|**2023**|**2024**|**2023**| ||**£**|**£**|**£**|**£**| |**Financial assets at fair value through**||||| |**statement of financial activities**||||| |Investments|**19,475,826**|18,794,691|**19,475,827**|18,794,692| ||_________|_________|_________|_________| ||**19,475,826**|18,794,691|**19,475,827**|18,794,692| ||_________|_________|_________|_________| |**Financial assets measured at**||||| |**amortised cost**||||| |Trade debtors|**35,695**|27,689|**35,695**|27,689| |Other debtors|**148,310**|115,158|**135,132**|103,573| |Amounts owed by group undertakings|-|-|**1,099,000**|749,000| ||_______|_______|_______|_______| ||**184,005**|142,847|**1,269,827**|880,262| ||_______|_______|_______|_______| |**Financial liabilities measured at**||||| |**amortised cost**||||| |Trade creditors|**159,256**|252,859|**146,417**|223,810| |Accruals|**310,017**|163,415|**149,375**|101,740| |Other creditors|**5,844**|-|**5,844**|-| |Loans – Amounts due within one year|**770**|769|**770**|769| |Loans – Amounts due after one year|**90,566**|91,336|**90,566**|91,336| ||_______|_______|_______|_______| ||**556,453**|508,379|**392,972**|417,655| ||_______|_______|_______|_______| 26 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **23. Movement in Permanent Endowment – Total Return Approach** |**Investment**
**Fund**
**£**
At beginning of the reporting period:
Gift component of the permanent endowment
5,091,310
Unapplied total return
-
_________
Total
5,091,310
_________
Movements in the reporting period:
Investment return: Income, dividends and interest
-
Investment return: realised and unrealised losses
-
Less: Investment management costs
-
_________
Net unapplied total return
-
Unapplied total return allocated to income in
the reporting period
-
_________
Net movement in the reporting period
-
_________
At end of the reporting period:
Gift component of the permanent endowment
5,091,310
Unapplied total return
-
_________
Total
5,091,310
|**Unapplied**
**Total**
**Total**
**Permanent**
**Return**
**Endowment**
**£**
**£**
-
**5,091,310**
19,714,985
**19,714,985**
_________
_________
19,714,985
**24,806,295**
_________
_________
702,939
**702,939**
735,271
**735,271**
(115,145)
**(115,145)**
_________
_________
1,323,065
**1,323,065**
(1,088,000)
**(1,088,000)**
_________
_________
235,065
**235,065**
_________
_________
-
**5,091,310**
19,950,050
**19,950,050**
_________
_________
19,950,050
**25,041,360**

| |---|---| The Great Hospital has adopted a total return approach to investments pursuant to an order of the Charity Commission for England and Wales under section 105 of the Charities Act 2011 dated 14 March 2011. The Great Hospital has benefited from returns on investments since its foundation in 1249. By agreement with the Charity Commission, the initial Investment Fund was set based on total assets held at January 1983 when a Scheme of the Charity Commissioners for the Great Hospital was established. This sum was increased to account for inflation between 1983 and the commencement of the Total Return Approach in April 2013. 27 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **24. Summary of fund movements:** |||**Income**|**Restricted**|**Endowment**| |---|---|---|---|---| ||**Total**|**Fund**|**Fund**|**Fund**| ||**£**|**£**|**£**|**£**| |Charity Funds as at 31 March 2023|34,199,404|8,931,302|461,807|24,806,295| |Income|2,318,598|1,615,659|-|702,939| |Expenditure|(2,897,733)|(2,765,484)|(17,104)|(115,145)| |Transfers between funds|-|1,088,000|-|(1,088,000)| |Gains and losses on investments|735,271|-|-|735,271| ||________|________|________|________| |Charity Funds as at 31 March 2024|34,355,540
________|8,869,477
________|444,703
________|25,041,360
________| The restricted fund represents Social Housing grants applied to Housing Association Scheme property developments. The fund is reduced by a proportion of the associated properties annual depreciation charge. A transfer was made during the year of £1,088,000 releasing endowment funds to income funds for the benefit of current and future beneficiaries. The 2023 fund movements are disclosed in note 31. ## **25. Staff costs** The average number of employees expressed as a headcount during the year to 31 March 2024 was 50. The corresponding number of employees for the year to 31 March 2023 was 53. Total staff costs during the year were: |**2024**
**£**
Remuneration
1,151,133
Social security costs
97,716
Pension cost
44,662
_______
1,293,511
|**2023**
**£**
1,072,521
96,554
46,128
________
1,215,202
| |---|---| Emoluments (including employers National Insurance) paid to members of the senior management team totalled £402,231 (2023: £349,327). During the year the highest paid member of the senior management team was the Master whose remuneration was £100,491 (2023: £91,673) and employer pension of £4,752 (2023: £4,442). One other staff member had emoluments in the disclosable salary range of £60,000 - £70,000 during the year (2023: None). Redundancy obligations in the year totalled £82,010 (2023: £nil). The Charity operates a group personal pension plan for members of staff. The pension charge represents contribution premiums payable by The Great Hospital to this plan under the rules of the scheme. 28 ## **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **26. Trustees remuneration and expenses** No Trustees received any remuneration (2023: £ nil). No Trustees were reimbursed for expenses (2023: £nil). ## **27. Residents contributions for accommodation** The Great Hospital provides almshouse accommodation and does not grant tenancies of dwellings occupied for the purpose of the Charity. At 31 March 2024 there were 101 (2023: 98) units available for residents under the ‘Housing for older people’ scheme. ## **28. Summary of net assets by fund** |Investments (at Market Value)
Cash
Stock
Debtors
Creditors
Free reserves
Housing Association loans
Investment property
Property in the course of construction
Housing Association
Scheme property
Equipment
Building improvements
Investment Fund
Unapplied Total Return
Total Endowment Fund|**Total**
**2024**
**£**
19,475,827
536,906
8,779
206,804
(354,199)
_________
19,874,117
_________
(90,566)
5,385,024
1,106,343
660,793
616,163
6,803,666
_________
34,355,540
_________|**Income**
**Fund**
**2024**
**£**
-
488,376
8,779
74,825
(354,199)
________
217,781
________
(90,566)
-
1,106,343
216,090
616,163
6,803,666
_________
8,869,477
_________|**Restricted**
**Endowment**
**Fund**
**2024**
**Fund**
**2024**
**£**
**£**
-
19,475,827
-
48,530
-
-
-
131,979
-
-
__________
_________
-
19,656,336
_________
_________
-
-
-
5,385,024
-
-
444,703
-
-
-
-
-
_________
_________
444,703
25,041,360
_________
_________
5,091,310
19,950,050
_________
25,041,360
|**Restricted**
**Endowment**
**Fund**
**2024**
**Fund**
**2024**
**£**
**£**
-
19,475,827
-
48,530
-
-
-
131,979
-
-
__________
_________
-
19,656,336
_________
_________
-
-
-
5,385,024
-
-
444,703
-
-
-
-
-
_________
_________
444,703
25,041,360
_________
_________
5,091,310
19,950,050
_________
25,041,360
| |---|---|---|---|---| |||||_________
5,091,310
19,950,050
_________
25,041,360
| 29 ## **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **28. Summary of net assets by fund (continued)** |Investments (at Market Value)
Cash
Stock
Debtors
Creditors
Free reserves
Housing Association loans
Investment property
Property in the course of construction
Housing Association Scheme
property
Equipment
Building improvements
Investment Fund
Unapplied Total Return
Total Endowment Fund|**Total**
**2023**
**£**
18,794,692
713,075
7,531
266,713
(374,211)
_________
19,407,800
_________
(91,336)
5,776,524
756,343
686,208
640,334
7,023,531
_________
34,199,404
_________|**Income**
**Fund**
**2023**
**£**
-
571,214
7,531
173,495
(374,211)
_________
378,029
_________
(91,336)
-
756,343
224,401
640,334
7,023,531
_________
8,931,302
_________|**Restricted**
**Endowment**
**Fund**
**2023**
**Fund**
**2023**
**£**
**£**
-
18,794,692
-
141,861
-
-
-
93,218
-
-
_________
_________
-
19,029,771
_________
_________
-
-
-
5,776,524
-
-
461,807
-
-
-
-
-
_________
_________
461,807
24,806,295
_________
_________
5,091,310
19,714,985
_________
24,806,295
_________|**Restricted**
**Endowment**
**Fund**
**2023**
**Fund**
**2023**
**£**
**£**
-
18,794,692
-
141,861
-
-
-
93,218
-
-
_________
_________
-
19,029,771
_________
_________
-
-
-
5,776,524
-
-
461,807
-
-
-
-
-
_________
_________
461,807
24,806,295
_________
_________
5,091,310
19,714,985
_________
24,806,295
_________| |---|---|---|---|---| |||||_________
5,091,310
19,714,985
_________
24,806,295
_________| 30 **GREAT HOSPITAL, NORWICH NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **29. Subsidiary company results** The Charity has a wholly owned subsidiary company, TGH (Commercial) Limited. The subsidiary company is a property construction and hospitality company and has been engaged by the Great Hospital to design and build new accommodation for residents. The subsidiary is not registered with the social housing regulator. The results of the subsidiary company to 31 March 2024 are set out below. |**2024**
**£**
Turnover
**-**
Cost of sales and administration
**(3,640**)
Charitable donation
-
_______
Net profit/(loss)
**(3,640)**
_______
The aggregate of assets liabilities and reserves was:
**2024**
**£**
Current assets
1,260,810
Current liabilities
(1,272,481)
_______
(11,671)
|_
|**2023**
**£**
2,580
(3,727)
-
_______
(1,147)
_______
**2023**
**£**
831,693
(839,724)
_______
(8,031)
| |---|---|---| At the 31 March 2024 the charity had made a programme related investment of £1,099,000 (2023: £749,000) in the subsidiary. Details of this are set out in note 17. ## **30. Related Party Transactions** TGH (Commercial) Limited is committed to pay its taxable profits to the Great Hospital by way of covenanted gift aid. At 31 March 2024 £Nil (2023: £Nil) was due to the Great Hospital from TGH (Commercial) Limited. Organisations connected to the Charity occasionally hire the halls with all transactions being carried out on the same terms as they are offered to the general public. ## **31. Post Balance Sheet Event** Following the year end, work has continued on the redevelopment of Elaine Herbert House. A main contractor has been appointed, and grant funding toward the cost of the building has been secured with Homes England. Construction work will continue through 2024 and 2025. 31 **GREAT HOSPITAL, NORWICH** ## **NOTES TO THE ACCOUNTS (CONTINUED)** _**YEAR ENDED 31 MARCH 2024**_ ## **32. Statement of Financial Activities 31 March 2023** ||**Income**|**Restricted**|**Endowment**|**2023**| |---|---|---|---|---| ||**Fund**|**Fund**|**Fund**|**Total**| ||**£**|**£**|**£**|**£**| |**Income and endowments from:**||||| |_Donations and legacies_|57,102|-|-|57,102| |_Income from charitable activities:_||||| |Net contributions from residents|1,395,937|-|-|1,395,937| |_Other trading activities_||||| |Functions|1,394|-|-|1,394| |_Investments_||||| |Property income|-|-|222,074|222,074| |Interest and investment income|-|-|455,175|455,175| |receivable||||| |_Other income_|25,426|-|-|25,426| ||________|________|________|________| |**Total income and endowments**|1,479,859|-|677,249|2,157,108| ||________|________|________|________| |**Expenditure on:**||||| |_Cost of raising funds_||||| |Investment management costs|-|-|186,236|186,236| |_Expenditure on charitable activities:_||||| |Services|1,317,097|-|-|1,317,097| |Management|573,615|-|-|573,615| |Maintenance|322,827|-|-|322,827| |Depreciation|269,434|17,104|-|286,538| |_Other expenditure_|695|-|-|695| ||________|_______|_______|________| |**Total expenditure**|2,483,668|17,104|186,236|2,687,008| ||________|________|________|________| |**Net income / (expenditure) before**||||| |**gains**||||| |**and losses on investments**|(1,003,809)|(17,104)|491,013|(529,900)| ||________|________|________|________| |Net gains / (losses) on investments|-|-|(1,303,551)|(1,303,551)| ||________|________|________|________| |**Net income / (expenditure)**|(1,003,809)|(17,104)|(812,538)|(1,833,451)| ||________|________|________|________| |**Transfers between funds**|904,000|-|(904,000)|-| ||________|________|________|________| |**Net movement in funds**|(99,809)|(17,104)|(1,716,538)|(1,833,451)| ||________|________|_______|________| |**Reconciliation of funds**||||| |Total funds brought forward|9,023,079|478,911|26,522,833|36,024,823| ||________|________|________|________| |**Total funds carried forward**|8,923,270
________|461,807
________|24,806,295
________|34,191,372
________| 32