**REGISTERED CHARITY NUMBER: 212061 REGULATOR OF SOCIAL HOUSING NUMBER: A1464** ## **Report of the Trustees and** **Audited Financial Statements for the Year Ended 31 December 2021** **for** ## **HAMPTON PAROCHIAL CHARITY** **HAMPTON PAROCHIAL CHARITY** **Contents of the Financial Statements for the Year Ended 31 December 2021** ||**Page**| |---|---| |**Reference and Administrative Details**|1| |**Report of the Trustees**|2 to 6| |**Report of the Independent Auditors**|7 to 9| |**Statement of Financial Activities**|10| |**Balance Sheet**|11| |**Notes to the Financial Statements**|12 to 23| |**Detailed Statement of Financial Activities**|24 to 25| **HAMPTON PAROCHIAL CHARITY** **Reference and Administrative Details for the Year Ended 31 December 2021** |**TRUSTEES**|Rev D Winterburn (Chairman)|Co-opted (St James)| |---|---|---| ||Miss B Healey (Vice Chair)|Co-opted| ||Cllr S Nicholson|Nominative (LBRUT)| ||Mr J Soones JP|Nominative (LBRUT)| ||Miss A Walker|Nominative (All Saints)| ||Rev S Leamy|Nominative (LBRUT)| ||Rev B Lovell|Co-opted (St Mary's)| ||Dr D Wile|Co-opted| ||Mrs P Williams|Co-opted| ||Mrs R McCann|Nominative (St Mary's)| ||Ms A Pietsch|Nominative (St James)| ||Rev D Williams|Co-opted (All Saints)| |||-appointed 22 June 2021| |**CLERK AND**|Ms N Hall|| |**HOUSING MANAGER**||| |**PRINCIPAL ADDRESS**|1A Jubilee House|| ||Ashley Road|| ||Hampton|| ||Middlesex|| ||TW12 2HX|| |**REGISTERED CHARITY**|212061|| |**NUMBER**||| |**REGULATOR OF SOCIAL**|A1464|| |**HOUSING NUMBER**||| |**AUDITORS**|Knox Cropper LLP|| ||Chartered Accountants and Statutory Auditors|| ||65 Leadenhall Street|| ||London|| ||EC3A 2AD|| |**BANKERS**|Barclays Bank plc|| ||10 Clarence Street|| ||Kingston upon Thames|| ||Surrey|| ||KT1 1NY|| Page 1 **HAMPTON PAROCHIAL CHARITY** ## **Report of the Trustees for the Year Ended 31 December 2021** The trustees present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of 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). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** For the financial period the main objective of the Parochial Charity is to provide almshouses accommodation for poor persons of good character who (except in special cases to be approved by the Charity Commissioners) are resident in the area of benefit of the former Civil Parish and Urban District of Hampton as constituted on the 27th January 1933. Under the scheme of 3 November 1977 (as varied subsequently) the Trustees are empowered to apply income in the maintenance and running of the almshouse property and in the administration of the Charity and to establish and maintain a reserve fund for maintenance. The Trustees are required to: - (i) Maintain an Extraordinary Repair Fund; - (ii) Defray the cost of keeping in repair the memorial to William Cole in the parish church of St.Mary the Virgin; - (iii) Pay the following yearly sums to the respective Church Wardens for Maintaining, repairing and insuring the parish churches of: |St Mary the Virgin, Hampton
St James, Hampton Hill
All Saints, Hampton
(iv)
Defray grants to one or both of the following:
Relief in need - up to £3,500 per annum
The Hampton War Memorial Charity - up to £250 per annum|£
500
250
250
1,000| |---|---| Subject to the foregoing payments, the income is to be applied for the benefit of the alms people. For the purposes of almshouse accommodation, the Charity is also a registered provider of Social Housing (Number A1464). ## **Public benefit** We have referred to the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and activities. The public benefit of the Charity is in providing safe and comfortable almshouse accommodation for those in need as described in the scheme and living grants to those in need. Whilst many of the activities are local in nature, the Trustees do not consider this to be an unreasonable geographic restriction and those in need are not excluded from benefit. ## **Charitable activities** Ten flats were occupied for the whole of the year, one flat was vacant for the whole year and one flat was occupied for half of the year. The trustees explored ways of identifying people in need so that grants could be made in line with the charity's objectives. Financial assistance was given to 2 (2020: 5) deserving applicants in the year totalling £1,016 (2020: £2,358). Page 2 **HAMPTON PAROCHIAL CHARITY** ## **Report of the Trustees for the Year Ended 31 December 2021** ## **FINANCIAL REVIEW** ## **Financial position** As disclosed in the Statement of Financial Activities on page 8 the surplus on total activities for the year before gains and losses on investment was £11,934 (2020: £114). Investment income and deposit interest was £32,391 (2020: £27,197). The "housing surplus", or surplus of rents against almshouse operating costs and associated interest payable, amounted to a deficit of £17,878 (2020: £23,445). The charity is dependent on the income generated from its investments to underpin its charitable objectives. The Endowed Capital Fund as at 31 December 2021 was £1,109,927 (2020: £1,002,841) The Extraordinary Repair Fund as at 31 December 2021 was £350,994 (2020: £223,179). The Income Fund as at 31 December 2021 was £16,644 (2020: £80,169). ## **Investment policy** Funds are invested in such a manner as the Trustees think fit in order to provide an appropriate and balanced portfolio taking into account the requirements of the law relating to the investment of charitable monies, and the investment policy of the Charity. ## **Reserves policy** The Trustees' reserves policy takes into account the fact that some funds are endowed or designated for specific purposes. In the case of unrestricted funds, the Trustees seek to maintain general reserves which will support the ongoing aims of the Charity and allow it to operate on a going concern basis. ## **Going concern** The Board has reasonable expectation that the charity has adequate resources to continue operations for the foreseeable future. For this reason, the going concern basis has continued to be used in preparing the financial statements. The Board has considered the impact of Covid-19 on the short and long term health of the charity, and is content that the measures taken, together with a robust budget provides assurance that the going concern basis is appropriate in preparing the financial statements. ## **FUTURE PLANS** The Trustees intend to continue their current activities in maintaining the almshouse accommodation through the Parochial Charity. The ongoing refurbishment of premises continues, in accordance with the aim of improving the service to tenants and future plans will involve an ongoing review and implementation of any works considered necessary. Post year end the Trustees updated the Scheme of the charity in respect of widening the area of benefit for those applying for almshouse licenses. The scheme was approved by the Charity Commission on 24 January 2022. The area of benefit now consists of the wards of Hampton, Hampton North, Fulwell and Hampton Hill, and Teddington in accordance with the ward boundaries as amended from time to time, with preference to be given to the wards of Hampton, Hampton North, and Fulwell and Hampton Hill. The criteria have been further widened to include persons of good character who are in financial hardship who are currently resident or employed or have family residing in the area of benefit, or otherwise have previously resided or been employed in, or have a strong connection to the area of benefit. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The Charity is governed by a scheme dated 3rd November 1977, as amended by a scheme dated 24th January 2022. The Charity's Registered Number is 212061 and it is also registered by the Regulator of Social Housing (Number A1464). Page 3 **HAMPTON PAROCHIAL CHARITY** ## **Report of the Trustees for the Year Ended 31 December 2021** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Charity constitution** The Charity is administered by a maximum of twelve Trustees, comprising: - (a) Six Nominative Trustees appointed for a term of four years as follows: Three by the Council of the London Borough of Richmond Upon Thames, who shall be persons who through residence, occupation or employment, or otherwise, have special knowledge of the area of benefit. One by the PCC of St. Mary the Virgin, Hampton. One by the PCC of St. James, Hampton Hill. One by the PCC of All Saints, Hampton. - (b) Six Co-opted Trustees, appointed for a term of five years. Investment powers are determined by the Trustees Act 2020. This is a principal Charity and embraces the Charities of the Parochial Quitrents, Mary Gavell, John Turner, Cyrus Maigre, William Cole,Eva Maria Garrick and John Jones. ## **Charity Governance Code** As a small charity, Hampton Parochial Charity has adopted the Charity Governance Code 2020 for Smaller Charities. ## **Organisational structure** The management of the Charity is carried out by the Clerk, Ms Nicola Hall, who is also the Housing Manager. The greater part of the administration is concerned with the almshouse accommodation at Jubilee House, built in 1985 to provide twelve almshouse flats. The Trustees meet at quarterly intervals and the Building, Finance and Appointments Committees meet periodically during the year. The trustees undertake induction training as a trustee on appointment and further trustee training as required. ## **Internal Controls** The Trustees acknowledge their responsibility for the Charity's system of internal controls, including internal financial controls. The system of controls covers governance, strategy and finance, relating to the safeguarding of assets, the maintenance of proper accounting records and the reliability of financial information used both within the organisation and for publication. The systems established and maintained can provide reasonable but not absolute assurance against material misstatement or loss. The Trustees give consideration to the major risks to which the charity is exposed and have reviewed the established systems and procedures to manage these risks. It has been agreed that the Trustees will annually review these risks. ## **Key management remuneration** The trustees receive no remuneration for their services other than the reimbursement of out-of-pocket expenses. Page 4 **HAMPTON PAROCHIAL CHARITY** ## **Report of the Trustees for the Year Ended 31 December 2021** ## **VALUE FOR MONEY (VFM)** Each year the Charity uses a range of data to measure VFM progress against the housing sector. The results help influence investment decisions and provide the regulators and other stakeholders with information on the progress of the Charity, whilst also ensuring compliance with the regulatory VFM standard. The metrics have been compared to Housemark sector scorecard published by the National Housing Federation. |**Metric**|**2021**|**2020**|**Housemark**
**Scorecard**||**Commentary**| |---|---|---|---|---|---| |New supply
delivered|0%|0%|0.90%||The Charity has 12 Almshouses in
management. This remains as per the
previous year, with no new supply of
social
housing
or
new
supply
of
non-social housing.| |Gearing|(2.03)%|5.51%|33.82%||The Charity has minimal borrowings
compared
to
industry
standard
repayable in one year.| |EBITDA MRI|(152.85)%|(392.46)%|216%||A deficit was made on the provision of
social housing. As a charity, Hampton
Parochial Charity supports its charitable
objectives via its investment returns.| |Social Housing
Cost Per Unit|£6,251|£7,261|£3,891||The charity has done well to monitor
expenditure
in
the
year.
Whilst
expenditure overall was consistent with
the prior year, the improved result
reflects the boiler replacements in 2020
for which there was no repeated capital
spend in 2021.| |Operating Margin
Overall
Social Housing
Lettings only|11.52%
(25.55)%|0.12%
(35.64)%|23.54%
25.49%||As a Charity, Hampton Parochial Charity
receives significant income from its
investments, which produced £32,389 in
2021, thus impacting the operating
margin. This income also underwrites
part of the charity’s operating costs.| |ROCE|0.77%|0.01%|3.10%||The charity usually incurs a deficit on
social
housing
activities
which
is
covered by income from its charitable
endowments.| |Reinvestment|0%|11.35%|5.10%||Following the replacement of boilers in
the
previous
year,
no
capital
improvements
were
required.
The
trustees are satisfied that the properties
have been maintained to a good
standard.| ## **RISK MANAGEMENT** The Trustees give consideration to the major risks to which the charity is exposed and have reviewed the established systems and procedures to manage these risks. It has been agreed that the Trustees will annually review these risks. The Board's focus in the year was on the below principal risks: Page 5 **HAMPTON PAROCHIAL CHARITY** ## **Report of the Trustees for the Year Ended 31 December 2021** ## **RISK MANAGEMENT** ## Risk of losing Trustees leading to ineffective management of the Charity The charity currently has 12 Trustees and has undertaken a skills audit to ensure a diverse range of skills is available for the effective running of the charity. The risk of loss of Trustees is mitigated through succession planning involving the wider community of the parish and advice from the Almshouse Association. ## Maintaining Properties to Decent Homes Standards in the face of Rising Costs Reports are made to the Board at each meeting to ensure all properties and inspections are up to date. A rolling programme of works is in place for component replacements to aid the spread of costs. The Charity currently has sufficient Extraordinary Repairs reserves to undertake necessary works as they arise. ## Lack of Maintenance Charge Increases and potential for long Void Periods Income and expenditure are reviewed quarterly and closely monitored by Trustees. Maintenance charge contribution increases are agreed in line with inflation. The charity has widened the catchment area for almspeople to mitigate the risk of long void periods. With the refurbishment works undertaken to date, the Trustees are confident of limiting the void periods to a minimum. ## Risk of loss through ineffective financial controls and rising governance costs Hampton Parochial Charity has documented financial procedures which are adhered to and monitored by Trustees. Trustees also closely monitor budgets and sign off month end financial reports. Governance costs are frequently reviewed and cost-effective services sought via approved suppliers. ## Covid-19 Global Pandemic The Board continue to monitor the outbreak and UK Government advice, together with corresponding with residents. There was no turnover of residents in the year, but the regular monitoring of voids and arrears has been identified as a key risk which has been addressed. ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity 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 charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2019, and the provisions of the governing document. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Approved by order of the board of trustees on 20 June 2022 and signed on its behalf by: D Winterburn - Chair Page 6 **Report of the Independent Auditors to the Trustees of Hampton Parochial Charity** ## **Opinion** We have audited the financial statements of Hampton Parochial Charity (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet 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 (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its 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 Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **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 Report of the Independent Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 7 **Report of the Independent Auditors to the Trustees of Hampton Parochial Charity** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Page 8 **Report of the Independent Auditors to the Trustees of Hampton Parochial Charity** - We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Housing and Regeneration Act 2008 and the Accounting Direction for Social Housing in England 2019. - The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance. - We understood how the charity is complying with those frameworks via communication with those charged with governance, together with the review of the charity's documented policies and procedures. - We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements. These included risks associated with Revenue Recognition, Management Override of Controls, and the increased incentive and pressure to commit fraud due to the Covid-19 environment, which were discussed and agreed by the audit team. - Our approach included agreeing the charity's recognition of income to the terms of the underlying licenses to occupy and associated correspondence, the review of journal entries processed in the accounting records and the investigation of significant and unusual transactions identified from our review of the accounting records. - Our approach was also to check that all restricted income was properly identified and separately accounted for. This included reviewing journal adjustments and unusual transactions. - Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the reporting to the trustees with respect to the application of the documented policies and procedures and review of the financial statements to ensure compliance with the reporting requirements of the charity. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Knox Cropper LLP Chartered Accountants and Statutory Auditors 65 Leadenhall Street London EC3A 2AD Date: 20 June 2022 Page 9 ## **HAMPTON PAROCHIAL CHARITY** ## **Statement of Financial Activities for the Year Ended 31 December 2021** |Notes
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
3
Housing
Investment income
2
**Total**
**EXPENDITURE ON**
**Charitable activities**
Housing
Charitable Activitites
**Total**
Net gains on investments
**NET INCOME**
**Transfers between funds**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
funds
£
**71,187**
**32,391 **
**103,578**
**83,355**
**2,266**
**85,621**
**46,333**
**64,290**
**-**
**64,290**
**303,348**
**367,638**|Endowment
fund
£
**-**
**-**
**-**
**6,023**
**-**
**6,023**
**113,108**
**107,085**
**-**
**107,085**
**1,002,842**
**1,109,927**|**2021**
**Total**
**funds**
**£**
**71,187**
**32,391 **
**103,578**
**89,378**
**2,266**
**91,644**
**159,441**
**171,375**
**-**
**171,375**
**1,306,190**
**1,477,565**|2020
Total
funds
£
65,775
27,197
92,972
89,220
3,638
92,858
55,004
55,118
-
55,118
1,251,073
1,306,191| |---|---|---|---|---| ## **CONTINUING OPERATIONS** All income and expenditure has arisen from continuing activities. The notes form part of these financial statements Page 10 **HAMPTON PAROCHIAL CHARITY** ## **Balance Sheet 31 December 2021** |Notes
**FIXED ASSETS**
Tangible assets
12
Investments
13
**CURRENT ASSETS**
Debtors
14
Cash at bank
**CREDITORS**
Amounts falling due within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year 16
**NET ASSETS**
**FUNDS**
18
Unrestricted funds
Endowment funds
**TOTAL FUNDS**|Unrestricted
funds
£
**19,175**
**350,995**
**370,170**
**956**
**68,466**
**69,422**
**(6,452)**
**62,970**
**433,140**
**(65,502)**
**367,638**|Endowment
fund
£
**129,612**
**980,315**
**1,109,927**
**-**
**-**
**-**
**-**
**-**
**1,109,927**
**-**
**1,109,927**|**2021**
**Total**
**funds**
**£**
**148,787**
**1,331,310**
**1,480,097**
**956**
**68,466**
**69,422**
**(6,452)**
**62,970**
**1,543,067**
**(65,502)**
**1,477,565**
**367,638**
**1,109,927**
**1,477,565**|2020
Total
funds
£
155,912
1,166,648
1,322,560
829
57,756
58,585
(8,822)
49,763
1,372,323
(66,132)
1,306,191
303,349
1,002,842
1,306,191| |---|---|---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 20 June 2022 and were signed on its behalf by: D Winterburn - Chair The notes form part of these financial statements Page 11 **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements for the Year Ended 31 December 2021** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** Hampton Parochial Charity is a charity constituted under a trust deed and registered as a charity with the Charity Commission of England and Wales. The address of the registered office is given on Page 1. The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The accounts comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing in England 2019. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The financial statements are presented in sterling, which is the functional currency of the Charity and are rounded to the nearest pound. The accounts have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure involved following 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 16th July 2014 rather than the Accounting and Reporting by Charities Statement of Recommended Practice effective from 1st April 2005 which has since been withdrawn. The almshouse properties of the Parochial Charity were redeveloped in 1985 under a scheme approved by the Housing Corporation. A Social Housing Grant was made and a mortgage loan advanced by the Housing Corporation. ## **Going concern** The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern. ## **Critical accounting judgements and key sources of estimation uncertainty** The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements: ## Identification of housing property components The charity accounts for its expenditure on housing properties using component accounting. Under component accounting, the housing property is divided into those major components which are considered to have substantially different useful economic lives. Judgement is used in allocating property costs between components (land, structure, kitchens, bathrooms etc) and in determining the useful economic lives of each component. Housing property depreciation is calculated on a component-by-component basis. The identification of such components is a matter of judgement and may have a material impact on the depreciation charge. The components selected are those which reflect how the major repairs to the property are managed. Page 12 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **1. ACCOUNTING POLICIES - continued** ## **Incoming resources** - (i) All voluntary income is included in income on receipt, except where the donor requires the sum to be invested to provide income for the Charity's purposes, in which case it is treated as an endowment. - (ii) Donations under gift aid together with associated income tax recovery are recognised as income when the donation is received. - (iii) Legacy income is recognised when the charity is entitled to the income, with entitlement being the earlier of the charity being notified of an impending distribution or the legacies being received. - (iv) Grants receivable are credited to income immediately. Social Housing Capital grants are recognised only when receivable, or in the period in which a scheme is completed and where the amount of the grant has been determined. - (v) Rents are recognised on the basis of amounts receivable in the year. - (vi) Rents received in advance are included as deferred income in creditors. - (vii) Investment income is earned through holding assets for investment purposes such as shares. It included dividends and interest. Where it is not practical to identify investment - management costs incurred within a scheme with reasonable accuracy the investment - income is reported net of these costs. It is included when the amount can be measured - reliably. Interest income is recognised using the effective interest method and dividend - income is recognised as the Charity's right to receive payment is established. ## **Resources expended** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure. ## **Housing properties** The almshouse properties are stated at the cost of the redevelopment in 1985 and include development expenditure, interest charged on the mortgage loans and capitalised. No value is included in respect of the land which formed part of the original endowment of the Charity. Housing properties are stated at depreciated cost. The cost of completed housing properties is depreciated over the life of the properties. Properties are accounted for on a component cost basis with each component being depreciated over its estimated economic life. The principal components identified and the depreciation rate applied to each component are set out below: ||**Years**| |---|---| |Fabric|**100**| |Roof|**70**| |Electrics|**40**| |Windows and doors|**30**| Page 13 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **1. ACCOUNTING POLICIES - continued** ## **Housing properties** Bathrooms **30** Mechanical systems **30** Kitchens **20** Boilers **15** ## **Furniture, Fittings and Equipment** Contents additions with an individual value over £2,500 are capitalised with items below this amount being written off to the income and expenditure account. Depreciation on Furniture, Fittings and Equipment has been provided in order to write off the cost over its expected useful life on a straight-line basis. The rate used for this purpose is 20%. ## **Taxation** The income and gains of Hampton Parochial Charity are exempt from taxation. The Charity is also not registered for Value Added Tax. Consequently, any Value Added Tax paid forms part of the expenditure to which it relates. ## **Charitable funds** The charitable funds were created from the investments comprised in the original endowments of the Charity together with further donations and accumulated interest and gains thereon. ## **Designated Reserves** Designated reserves from part of unrestricted reserves which have been earmarked by the Trustees for a particular purpose. Such designations may be reversed by future Trustees' decisions. Expenditure cannot be directly set against designated reserves but is taken to the income and expenditure account. A transfer is then made from designated reserves as appropriate. ## **Social Housing Grant** The charity received a Social Housing Grant in respect of the almshouse. This is reflected in reserves in the endowed capital fund and is amortised over its useful life. ## **Endowed Capital Fund** Hampton Parochial Charity received the almshouse and the land on which is built as an endowment. These assets are held in the Endowed Capital Funds, there is no value included in the balance sheet in respect of the land which formed part of the original endowment of the charity. The almshouse property, and subsequent costs of redevelopment and the interest on related loans are reflected in the balance sheet. These are depreciated over the estimated useful economic life of the assets, with depreciation charged through the endowed capital fund by a reduction of the Social Housing Grant ## **Unrestricted Reserves** Unrestricted reserves are general funds available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. ## **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. ## **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. Page 14 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **1. ACCOUNTING POLICIES - continued** ## **Creditors and provisions** 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **Investments** Investments are a form of basic financial investment and are initially recognised at their transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. ## **2. INVESTMENT INCOME** |Investment income
Deposit account interest
**3.**
**INCOME FROM CHARITABLE ACTIVITIES**
Gross maintenance contributions from residents
Losses from voids|**2021**
**£**
**32,389**
**2**
**32,391 **
**2021**
**£**
**82,800**
**(11,613) **
**71,187**||2020
£
27,174
23
27,197
2020
£
76,378
(10,603)
65,775| |---|---|---|---| ||||| Page 15 continued... **HAMPTON PAROCHIAL CHARITY** ## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **4. GRANTS PAYABLE** |Charitable Activitites
The total grants paid to institutions during the year was as follows:
Relief in need
Hampton War Memorial Charity|**2021**
**£**
**1,266**
**2021**
**£**
**1,016**
**250**
**1,266**|2020
£
2,608
2020
£
2,358
250
2,608| |---|---|---| ## **5. SUPPORT COSTS** |Management
£
Housing
**15,264 **
Support costs, included in the above, are as follows:
**Management**
Clerk's salary
Pensions
Subscriptions
Administrative services
Recharges of administrative costs
**Finance**
Loan|Governance
Finance
costs
£
£
**7,239**
**5,400**
**2021**
**£**
**17,695**
**346**
**536**
**2,227**
**(5,540) **
**15,264 **
**2021**
**£**
**7,239**|Totals
£
**27,903**
2020
£
**17,120**
**-**
**450**
**4,027**
**(5,340) **
**16,257**
2020
£
**7,296**| |---|---|---| |||| Page 16 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** |**5.**
**SUPPORT COSTS - continued**
**Governance costs**
Auditors' remuneration
**6.**
**AUDITORS' REMUNERATION**
Fees payable to the charity's auditors for the audit of the charity's
financial statements|**2021**
**£**
**5,400**
**2021**
**£**
**5,400**|2020
£
**7,056**| |---|---|---| |||2020
£
7,056| ## **7. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020. ## **8. STAFF COSTS** |Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Clerk and Housing Manager|**2021**
**£**
**17,695**
**346**
**18,041**

**2021**
**1**|2020
£
16,800
320| |---|---|---| |||17,120| |||2020
1| No employees received emoluments in excess of £60,000. Page 17 continued... **HAMPTON PAROCHIAL CHARITY** ## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** |**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Endowment
funds
fund
£
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Housing
65,775
-
Investment income
27,197
-
**Total**
92,972
-
**EXPENDITURE ON**
**Charitable activities**
Housing
79,532
9,688
Charitable Activities
3,638
-
**Total**
83,170
9,688
Net gains on investments
26,693
28,311
**NET INCOME**
36,495
18,623
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
266,854
984,219
**TOTAL FUNDS CARRIED FORWARD**
303,349
1,002,842
**10.**
**SOCIAL HOUSING ACTIVITIES**
**2021**
**£**
Turnover from Social Housing
**71,187**
Operating costs of Social Housing
**(89,065) **
Operating surplus and surplus on Social Housing activities
**(17,878) **|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Endowment
funds
fund
£
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Housing
65,775
-
Investment income
27,197
-
**Total**
92,972
-
**EXPENDITURE ON**
**Charitable activities**
Housing
79,532
9,688
Charitable Activities
3,638
-
**Total**
83,170
9,688
Net gains on investments
26,693
28,311
**NET INCOME**
36,495
18,623
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
266,854
984,219
**TOTAL FUNDS CARRIED FORWARD**
303,349
1,002,842
**10.**
**SOCIAL HOUSING ACTIVITIES**
**2021**
**£**
Turnover from Social Housing
**71,187**
Operating costs of Social Housing
**(89,065) **
Operating surplus and surplus on Social Housing activities
**(17,878) **|Total
funds
£
65,775
27,197
92,972
89,220
3,638
92,858
55,004
55,118
1,251,073
1,306,191
2020
£
65,775
(89,220)
(23,445)| |---|---|---| |||| Page 18 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **11. SOCIAL HOUSING GRANT** The total Social Housing Grant received for Hampton Parochial Charity as at 31st December 2021 amounted to £484,402 (2020: £484,402). The full Capital Grant would only become repayable if the Almshouses were disposed of and the grant was not recycled. |Aggregate amount received
At 31st December 2021 and 31st December 2020
Released to Statement of Financial Activities
At 31st December 2021 and 31st December 2020
Social Housing Grant Carried forward|**£**
**484,402 **
**(484,402)**
**-**| |---|---| ## **12. TANGIBLE FIXED ASSETS** |**COST**
At 1 January 2021
Transfer to housing
At 31 December 2021
**DEPRECIATION**
At 1 January 2021
Charge for year
Transfer to housing
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|Housing
properties
£
**484,402**
**17,256**
**501,658**
**348,769**
**6,023**
**863**
**355,655**
**146,003**
135,633|Fixtures
and
fittings
£
**50,836**
**(17,256) **
**33,580**
**30,558**
**1,101**
**(863) **
**30,796**
**2,784 **
20,278|Totals
£
**535,238**
**-**
**535,238**
**379,327**
**7,124**
**-**
**386,451 **
**148,787 **
155,911| |---|---|---|---| Page 19 continued... **HAMPTON PAROCHIAL CHARITY** ## **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **13. FIXED ASSET INVESTMENTS** |**MARKET VALUE**
At 1 January 2021
Accumulation dividends
Revaluations
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|Listed
investments
£
**1,166,648**
**5,221**
**159,441**
**1,331,310**
**1,331,310**
1,166,648| |---|---| There were no investment assets outside the UK. |The Investments comprise the following:
202,257 (2020: 202,257) M&G Charity Multi
Asset Fund Income Shares (Endowed)
(Previously the National Association of
Almshouses Common Investment Fund)
1,449.35 (2020: 1.449.35) COIF Accumulation
Shares (E.R.F)
38,757.7 (2020: 38,757.7) COIF Income
Shares (Endowed)
Balance at 31 December 2021|**2021**
2020
**Market**
**Value**
**Cost**
Market
Value
Cost
£
£
£
£
**184,357**
**87,352**
169,127
87,352
**350,994**
**158,513**
299,440
153,292
**795,959**
**180,174**
698,081
180,174| |---|---| ||**1,331,310**
**426,579**
1,166,648
420,818| |**14.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2021**
**£**
Other debtors
**8**
Prepayments and accrued income
**948**
**956**
**15.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2021**
**£**
Other creditors
**6,452 **
**16.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
**2021**
**£**
Other creditors
**65,502 **|2020
£
-
829
829
2020
£
8,822
2020
£
66,132| |---|---| Page 20 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **17. LOANS** An analysis of the maturity of loans is given below: |Amounts falling due between two and five years:
Other loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Other loans more 5yrs instal|**2021**
**£**
**3,314**
**62,188**|2020
£
2,981
63,151| |---|---|---| The loan was advanced on 1 October 1985 by The Housing Corporation on mortgage, secured by a charge on the Charity's housing land and buildings. By an assignment dated 26 March 1997. The Housing Corporation assigned the Charity's loan to First Orchard Brook Limited and subsequently to NatWest. The loan is repayable over 60 years by equal half -yearly instalments of £3,903, combining principal and interest. Interest is payable at a rate of 10.875% per annum. The last instalment falls to be repaid in 2045. ## **18. MOVEMENT IN FUNDS** |**Unrestricted funds**
Income Funds
Extraordinary Repair Fund
**Endowment funds**
Endowment Capital
**TOTAL FUNDS**|At 1.1.21
£
**80,169**
**223,179**
**303,348**
**1,002,842**
**1,306,190**|Net
movement

in funds
£
**12,736**
**51,554 **
**64,290**
**107,085**
**171,375**|Transfers

between

funds
£
**(76,261)**
**76,261 **
**-**
**-**
**-**|
At
31.12.21
£
**16,644**
**350,994 **
**367,638**
**1,109,927**
**1,477,565**| |---|---|---|---|---| Net movement in funds, included in the above are as follows: |**Unrestricted funds**
Income Funds
Extraordinary Repair Fund
**Endowment funds**
Endowment Capital
**TOTAL FUNDS**|Incoming
resources
£
**98,357**
**5,221**
**103,578**
**-**
**103,578**|Resources
expended
£
**(85,621)**
**-**
**(85,621)**
**(6,023)**
**(91,644)**|Gains and
Movement
losses
in funds
£
£
**-**
**12,736**
**46,333**
**51,554 **
**46,333**
**64,290**
**113,108**
**107,085**
**159,441**
**171,375**| |---|---|---|---| Page 21 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **18. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |**Unrestricted funds**
Income Funds
Extraordinary Repair Fund
**Endowment funds**
Endowment Capital
**TOTAL FUNDS**|At 1.1.20
£
70,368
196,486
266,854
984,219
1,251,073|Net
movement

in funds
£
9,802
26,693
36,495
18,623
55,118|
At

31.12.20
£
80,170
223,179
303,349
1,002,842
1,306,191| |---|---|---|---| Comparative net movement in funds, included in the above are as follows: ||Incoming|Resources|Gains and|Movement| |---|---|---|---|---| ||resources|expended|losses|in funds| ||£|£|£|£| |**Unrestricted funds**||||| |Income Funds|92,972|(83,170)|-|9,802| |Extraordinary Repair Fund|-|-|26,693|26,693| ||92,972|(83,170)|26,693|36,495| |**Endowment funds**||||| |Endowment Capital|-|(9,688)|28,311|18,623| |**TOTAL FUNDS**|92,972|(92,858)|55,004|55,118| ## **Extraordinary Repairs Fund** This represents amounts set aside to carry out future major repairs to Housing Properties. THe movement in year relates to accumulated dividends received in the year together with gains and losses on the CCLA ERF investment. ## **Endowment Fund** Hampton Parochial Charity received the almshouses and land on which they are built as an endowment. The fund represents the original cost (£267,526) of the property, unrealised gains and losses on investment assets held in endowment funds, and the net book value of the social housing grant. The movement in the period reflects gains and losses on endowment investments and the depreciation on housing properties to write off the grant over the life of the components of the building. Page 22 continued... **HAMPTON PAROCHIAL CHARITY** **Notes to the Financial Statements - continued for the Year Ended 31 December 2021** ## **19. RELATED PARTY DISCLOSURES** All of the trustees of the charity are also trustees of The Hampton War Memorial Charity (Charity Number 212062). Hampton Parochial Charity provided a grant of £250 to the charity in the year (2020: £250). Rev B Lovell is also a Trustee of The Parochial Church Council of The Ecclesiastical Parish of St Mary, Hampton (Charity Number 1133768), which received £500 (2020: £500) from the charity. Rev D Winterburn is also a Trustee of The Parochial Church Council of The Ecclesiastical Parish of St James, Hampton (Charity Number 1129286), which received £250 (2020: £250) from the charity. Rev D Williams and Mrs P Williams are also a Trustees of The Parochial Church Council of the Ecclesiastical Parish of All Saints, Hampton (Charity Number 1133867), which received £250 (2020: £250) from the charity. All grants were paid under the objects of the charity. No balances were outstanding at 31 December 2021 (2020: Nil). ## **20. UNITS IN MANAGEMENT** The Charity had 12 units in Management during the year. (2020: 12). Page 23 **HAMPTON PAROCHIAL CHARITY** ## **Detailed Statement of Financial Activities for the Year Ended 31 December 2021** ||2021|2020| |---|---|---| ||£|£| |**INCOME AND ENDOWMENTS**||| |**Investment income**||| |Investment income|**32,389**|27,174| |Deposit account interest|**2**|23| ||**32,391**|27,197| |**Charitable activities**||| |Housing Activities|**82,800**|76,378| |Losses from voids|**(11,613) **|(10,603)| ||**71,187 **|65,775| |**Total incoming resources**|**103,578**|92,972| |**EXPENDITURE**||| |**Charitable activities**||| |Water and council tax|**1,678**|-| |Insurance|**1,793**|1,929| |Light and heat|**6,400**|9,671| |Gardening|**2,599**|1,750| |Property repairs and maintenance|**31,149**|22,614| |Sundries|**213**|34| |Entertaining|**815**|488| |Cleaning|**1,188**|1,272| |Church maintenance|**1,000**|1,000| |Royal British Legion|**-**|30| |Caretaking costs|**8,516**|8,809| |Depreciation of tangible fixed assets|**7,124**|12,044| |Grants to institutions|**1,266**|2,608| ||**63,741**|62,249| |**Support costs**||| |**Management**||| |Clerk's salary|**17,695**|16,800| |Pensions|**346**|320| |Subscriptions|**536**|450| |Administrative services|**2,227**|4,027| |Recharges of administrative costs|**(5,540) **|(5,340)| ||**15,264**|16,257| |**Finance**||| |Loan|**7,239**|7,296| This page does not form part of the statutory financial statements Page 24 **HAMPTON PAROCHIAL CHARITY** ## **Detailed Statement of Financial Activities for the Year Ended 31 December 2021** ||2021|2020| |---|---|---| ||£|£| |**Finance**||| |**Governance costs**||| |Auditors' remuneration|**5,400**|7,056| |Total resources expended|**91,644**|92,858| |**Net income**|**11,934 **|114| This page does not form part of the statutory financial statements Page 25