KIN EVMEM RIAL H SE REGIsfERED CHARITY NUMBER 22358 SOCIAL HOUSING REGULATOR NUMBER A2250 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Independent Examiner: Beever and Struthers 150 Minories London EC3N ILS
King George V Memorial Houses Financial Statements For The Year Ended 31st March 2025 Index Pa Report of the Trustees Independent Examiners Rewrt io Statement of Financial Activities li Balance Sheet 12 Statement of Cash Hows 13 Notes to the Financial Ststements 14-24
Page I King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 The Trustees submits its report and the financial statements for the year ended 31st March 2025. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY Charity Registration King George V Memorial Houses is an unincorporated charity registered with the Charity Commission under number 212358 and registered with the Regulator of Social Housing under number A2250. Principal and Administration addr. 33 Dean Court Bowmans C105e Ealing LondDn W13 9YU Trnstees Rev. Mark Melluish Ms Isabella Rossi Ms Andrea Joseph Mr Joshua Reddaway Ms Fiona Howie Ms Tycia Riley Ms Alison Pegg Ms Sophie Service Mr Tye Mcmahon Ms Sarah Woodbridge Ex-offioo, Chair Retired IO, July 2024 Retired 30 October 2024 Appointed 30th October 2024 Appointed 30th ortober 2024 Appointed 30th Ottober 2024 Custodian Tru5tees'. Tlue to the charity's housing properties is vested in Housing Pathways as Cust(K1ian
Page 2 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 REFERENCE AND ADMINISTRATIVE DEfAILS OF THE CHARTfY (continued) office and advisors Chief Executive Officer and managementteam steve McNaughton is employed as the Chief Executive on a part-time basis. The Senior Property Manager continued to be Eoin Donnelly who was appointed in November 2023. Bolaji Omotsde who was the Head of Finan & Company Secretary left Pathways in August 2024. Carpenter Box were appointed as Head of Finance in Dember 2024. Principal Advisors Principal Auditors Beever and Struthers 150 Minories London EC3N ILS Principal Bankers Royal Bank of Scotland 49 Bishopsgate London EC2N 3AS Principal Solicitors Devonshires 30 Finsbury Circus London EC2M 7DT Prlnclpal Investment Managers CCLA Fund Managers Limited Senator House 85 Queen Victoria Street London EC4V 4ET
Page 3 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 srRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The Charity is governed by a Trust Deed dated 23rd December 1936, as amended by Trust deeds dated 27th October 1969,. 11th June 1993,. 2nd June 1997,. and an Order issued by The Charity Commission of England and Wales dated 30th NOVemr 2011. As amended resolution dated 1st April 2022. HIM Trustees are Recruited, Appointed, Inducted and Trained There are no geographical restricbons on trustees, appointment and applications from persons living in Greater London boroughsi Particularly where we have a presence, are welcomed. Vacancies are advertised in the local press and on charity-related web5ite5, Wlth a nationwide reach. Applicants for trustee vacanaes are interviewed by the Chair of the Board and 2 other Board members of the nominations committee prior to appointments. All new trustees receive an induction session that CDvers core areas Df the business. Existing trustees also have ac5$ to ongoing training opportunib"es, to assist them in fulfilling their roles and responsibilities. In aédition to the Board meetings, trustees attend an annual review day, which allows for detailed discussions on strategic planning issues. Oryanisation and Management The day-to-day management of the charity is delegated to the senior management team. The Chief ExecutDfe reports to the Chair and the Board of Trustees. Housing Pathways Trust (HPT) prowdes a full management service to the charity, including all operational, administrative, and financial funttions, for whith it charges a management fee. HPT, Board of Trustees usually meets six times a year to agree strategyi oversee operations, manage risk, and consider the financial stsnding of the Charity. In addition to the main meetings of the Board of Trusiees, there are the following sub-committees which f5 on specific areas of the business in more detail: Audit and Risk, Grants, Nominations and Remuneration. Governance matters are dealt with by the main board, except that the Nominations & Remuneration committee oversees the recruitment of new Trustees. The PAard and each sub-committee have an agreed Terms of Reference, detailing their pUr[X and responsibilities. The key decision-making protocols are contained in the Committees, terms of reference and the Financial Standing orders, the latter being reviewed by the Audit and Risk Committee annually. The board considers a range Df peer organisations, pay reviews as a benchmark, and the overall economic and regulatory conditions in which the Charity is expecied to operate in the coming year. In assessing the April 2023 staff pay review, the prevailing CPI rate, the cost-of-living crisis and its possible effert on the economy in general and hDuse prices and rents in particular were considered. Staff are responsible for carrying out the strategy agreed by the Board and the Chief Executive may act within the constraints of the overall expense budget agreed by the Board. The management team during the year comprised, in addition to the Chief Executive, an Dperation team and a Finance team.
Page 4 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 OBJECTIVES AND ACTIVITIES Objects The object of the charity is to provide Housing for aged people living in the Borough of Gillingham. Activities The Charity provides accommodation for older people who are in need and who have lived for at least two years in the Borough of Gillingham, Kent. The Trustees has considered the Charity Commissioners guidance on public benefit and considers that the activities of the Almshouse meet its charitable objects and proviée a benefit to the public. The charity owns and manages 12 un5 of accomM(ation for older people. In the year ended 31 March 2025, we housed O (2024.. 1) new residents in our Almshouse accommodation for older people. During the year Bathroom replacement was carried out for three properties, boiler adéitions for a propety, Door replacements, and kitchen replament was carried out for three properties REVIEW OF ACHIEVEMENTS AND PERFORMANCE VALUE FOR MONEY (VFM} Our aim is to deliver services of the right quality economicallyft efficiendyi and effectivelyi thus meeting the need5 of our residents and all other stakeholders. The charty is committed to continuously improving our VFM for our residents in all aspects of our business. Our VFM reporb.ng and analysis are now focused on the seven key metrics that are used for comparison across the sector. The peer group median used comprised 34 smaller housing associations primarily providing Housing for Older People (HfOP) accommodation nationally of which 20 members. data was included in the calculation. Value for Money Key Metrics 2025 2024 l. Reinvestment 0/0 Considers the investment in properties {existing stock as well as new supply) as a percentsge of the value of totsl properties held. 2. New Supply Delivered 0/0 The number of new social housing and non-social housing homes that have been acquired or developed in the year as a proportion of total social housing and non-social housing homes owned at n{Nj end. A. New supply delivered (Social housing homes) B. New supply delivered (NOn-CIal hoLJsing homes) 11.38¥0 28.82010 00/0 00/0 00/0 00/0 3. Gearing 0/0 Assesses how much of the adjusted assets are made up of debt and the de ree of de endence on debt finance.
Page 5 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 4. Earnings Before InteresL Ta¥ Depreciation, Amortisation, Major Repairs Induded (EBITDA MRI) Interest Cover 0/0. A key indicator for liquidity and investment capacity. Measures the level of surplus generated compared to interest payable NIA NIA 5. Social Housing Cost Per Unit The headline social housing cost per unit as defined by the Regulator £6,250 £14,521 6. Operating MaryinO/o Demonstrates the profitability of operating assets before exceptional expense5 are taken into account. Increasing margins are one way to improve the financial efficiency of a business. A. Operating Margin (social housing lettings only) B. Operating Margin (overall) {29.0)0/o {22.8)¥0 (50.67)010 (36.90)Wo 7. ROCE 0/0 Compares the operats.ng surplus to totsl assets less current liabilities. An assessment of the efficient investment of capital resources. (3.49) {3.93)010 We recognise that our spend is above that of the sector and by continuing to review programme, together with our long-term financial modelling we will ensure that the pace at which we reinvest remains financially sustainable and continue5 to demonstrate Value for Money and improve resident satisfattion and replacing major components to significantly redu future ongoing responsive repair costs Key Performance Indicators (KPIS) As members of the Housing for Older People {HfOPI bend)marking group, run by Acuity, which comprises about 26 similarly sized housing providers. We have access to a range of KPIS, both for the immediate gmup and national comparison5 Wlth Housemark, enabling us to compare performall and share good pracbce to drive improvements and reporting to stakeholders. The KPIS cover areas of organizats'onal performance including regdent satisfaction, Value for Money, repairs, lettings, voids, and compliance but they also provide benchmarking information on areas such as average Working days lost due to staff sckness days. Information Communication Technology (ICT) The Charity benefits from Hpfs upgraded IT equipment and modernised software to ensure the systems are fit for purpose. COMPLIANCE WThH THE 2020 NHF CODE OF CONDucr ng George V Memorial Houses via HPT adopted with National Housing Federation 2020 code of governan.
Page 6 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 TENANT sATIsFA[oN MEASURES The Charity is an alms-house provider registered is a registered provider of ial housing regulated by the Regulator of Social Housing (RSHI. On l April 2023 the RSH published a new system for assessing how well s(Kial housing landlords in England are doing at providing good quality homes and seNices. The system is referred to as tenant satisfaction measures ITSM'S). The measures are a list of indicators that social housing landlords must report on. The dats collected refers to King George V Memorial House5 and HPT combined. TSMS collected from Housing Pathways Trust resident perception survey TPOI Overall satisfaction - 89Q/o TFfj2 Satisfaction with repairs- 88% TP03 Satisfaction with time taken to Complete most recent repair- 88% TP04 Satisfaction that the home 15 well maintained- 84% TP05 Satisfaction that the home is safe- 900/0 TP06 Satisfaction that the landlord listen5 to tenant views and acts upon them - 790/0 TFX)7 Satisfaction that the landlord keeps tenants informed atKut things that matter to thern - 84% TP08 Agreement that the landlord treats tenants fairly and with re5pect- 860/0 TP09 Satisfaction with the landlord's approach to handling complaints- 61% TPIO Satisfaction that the landlord keeps communal areas clean and well maintain&1 - 84% TPII Satisfaction that the landlord makes a positive contribution to neighbourhoods- 78% TP12 Satisfaction with the landlord's approach to handling anti-s(Kial behaviour- 77% TSMS generated from Housing Pathways Trust management information CHOI Complaints relative to the size of the landlord 6.2 CH02 Complaints responded to within Complaint Handling Code timescales- IOOWO NMOI Anti-social behaviour case5 relats.ve to the size of the landlord - O RPOI Homes that do not meet the Decent Homes Stsndard - O RP02 Repairs Completed within target timescale - not available BSOI Gas safety checks- IOOWO BS02 Fire safety checks- IOOO/o BS03 Asbestos safety checks- IOO¥o BS04 Water safety checks- IOOO/o BS05 Lift safety checks- lOO% One King George V resdent made submitted a complaint during the financial year. FINANCIAL REVIEW The Charity recorded a net movement in funds of {£27,773112024.. £22,164). This is due to n rttoan urfavorable movement on the value of investments of £10,871 (2024.. favourable movement of £41,528). In the year the Charity made a deficit on Soaal Housing Lettings of £20,360 {2024.. deficit £32,395) due to the sums incurred to improve the properties at the site. The Ststement of Financial Attivities shows a decrease in Total Funds of £27,773 to £796,067 (2024.. £823,840). ReseNes Policy and ReseNes Designated reserves are maintained in accordan with guidan issued by the National Almshouse Association for the cyclical maintenance and repair of the properties. Detsils of the designated reserves can be found in note 16. The Trustees continue to review the Charity's reserves. Totsl Fund5 at 31st March 2025 of £796,06712024- £823,840) comprised cyclical repairs and maintenan £26,876, extraordinary repairs £42,403 general funds of £615,031 and restricted Fixed Asset fund of £111,757.
Page 7 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 The level of Maintenan reserves 15 considered adequate to cover any such costs that are likely to be charged to the venue account. Unrestricted funds amount to £684,310 (2024: £712,083) and are in place to ensure ongoing trading in the event of any material Ioss of income, and as a result of the need to build up liquidity to fund future capital cost5 of Planned Maintenance and expansion of our housing stock. Taking into account fixed assets held for the charity's activities, reserves amount to £387,729 (2024.. £408,630). Investment Policy The investment policy lodged with M&G and CCLA is to invest prudently in a broad range of fixed interest securities and equ(tie5, which are quoted on a Registered Investment Exchange, and unit trusts, within an agreed range of percentage holdings for each class of investment. Ethical restrictions art determined by the board of each investment fund and prohibit investment in companies which produce certain products or earn a significant amount of their tumover from certain activities Risk Management The major risks to which the Almshouse charities are exposed, as identified by the Trustees, are regularly reviewed. In addition, the Trustees have put in place systems, policies, and procedures to mitigate these risks once they are identified and assessed. All reports presented to Board and sub-committees include an executive summary of risk which cross refers to the risk5 identified in the key risks register. The Key risks and unrtaIntieS facing the charity cover a number of areas of operation and are controlled using procedures and sub-committee overview identifies further mlgationS and the responsible manager. Key ris include 105s of income, breach of legislation or covenants, compliance failure, a build-up of arrears and misappropriation of funds through fraud. Fraud The Board has a Policy on fraud covering prevention, detection and reporting of fraud and the recovery of assets. The Chair and A&R Committee chair are notified immediately of any attempted fraud. Antl-brlbery pollcy statement We seek to maintsin the highest standards of ethics and integrty in the way we conduct our business. We recognise that bribery and corrupts'on in all its forms, is illegal and unacceptable. Our bribery policy statement has been integrated into our crKJe of conduct and our gifts and hDSPitality policyft adopted by the Board, signed by the Chairman and Chief Executive. We expect our business partners to adopt a similar approach to bri or corruption. FUTURE PLANS Our key priorities are to.. Improve customer satisfacb.on and deliver value for money for our residents. Carry out planned Maintenan to our alms-houses in accordance with out stock condition survey and planned maintenance programme. To reduce our cost base and seek better value for money, which is seen as a sensible approach in what are generally unrtain economic times. The Board 15 in the prOsS of defining its asset management strategy and asset management plan. We will continue to redu our cost base and improve Value for Money in accordance with the stsndard whilst driving and improving performan against the seven key metrics year on year.
Page 8 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 srATEMENT OF TRUSTEES. RESPONSIBILrrIES Law applicable to charities and to entities under the Regulator Df Social Housing in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees should follow besi practi and.. select suitable accounting policies and then apply them consistentlyi make judgements and esb"mates that are reasonable and prudent. prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees is responsible for keeping accounting records which disclose with reasonable accuracy the financial sition of the charity, and which enable them to ensure that the financial statements comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Social Housing 2022 and the Charities Att 2011. It is also responsible for safegLJarding the assets of the charity and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities. TRUSTEES. sfATEMENT ON INTERNAL FINANCIAL CONTROLS The Trustees acknowledges its ultimate responsibility for ensuring that King George V Memorial Houses ha5 in Pla a system of controls that is appropriate to the various business environments in which it operates. These controls are designed to give reasonable assurance with respect to- {a) the reliability of financial information used within the charity or for pubtication {b) the Maintenan of proper accounting e0rd$, ar {c) the safeguard of assets against unauthorised use or disposIDn It is the Trustees, responsibility to establish and maintain systems of internal financial control. Such systems can only provide reasonable but not absolute assurance against material financial misstatement or loss. Key elements include ensuring that.. (a) formal policie5 and prOdureS are in place, including the documentation of key systems and rules relating to the delegation of authorities, which allow the monitoring of controls and restrict the unauthorized use of the charity's assets. {b) experienced and suitsbly qualified staff take responsibility for iMpont business functions. {c) forecasts and budgets are prepared which allow the Trustees and management to monitor the key business risks and financial objectives and progress towards financial plans set for the year and medium term,. regular management accounts are prepared promptlyi providing relevant, reliable and up-to-date financial and other information and significant variance from budgets are investigated as appropriate. {d} all sgnificant new initiatives, major commitments and investment projects are subject to formal authorization procedures, through relevant sub-committees comprising Trustees and othets. (e) the trustees of King George V Memorial Houses review reports from management and from external auditors to provide reasonable assurance that control procedure5 are in place and are being followed and this includes a general review of the major risks facing the charity.
Page 9 King George V Memorial Houses Annual Report of the TNstees For The Year Ended 31st March 2025 CHAIRMAN'S REPORT Pathways has had another fruitful year and this repDrt reflects so much of that. Our resident survey showed that the level of satisfattion with our homes and Ser provision has risen again. This was a goal we set ourselves 3 years ago and it is so encouraging to see the results of the investment made by staff and contractors. The level of complaints has reduced, and any complaint is being delt wh in a quick and efFicient manner. We have put in a new financial management process to improve our management of both every day and long term planning. Much of this is down to stable staff team who work so well together. The approach we have taken to have Housing Mangers being responsible for'their, own selection of properties has brought a deeper level of care and customer service. This year we have also successfully expanded the Board Membership with some more highly skilled contributors as part of continued drive to improve. All of this has been led by our CEO, Steve McNaughton who brings great leadership. Approved by the Board of Trustees at its meeting Dn 25109R025 and signed on its behalf by.. Mark Melluish M wéUHish Chair of rd Df Trustees
Page 10 Independent RqY1n9 Ac£ountants Report To The Trustees of King George V Memorial House For the year ended 31st March 2025 Independent examinerfs report to the trustee5 of King Georye V Memorial Housing (KGVMH). I report to the trustees on my examination of the accounts of the KGVMH (the Trust) for the year ended 31 Marth 2025. Responsibilities and $15 of report As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Art 20111'the Act?, the Housing and Regeneration Att 2008 and the Accounting D1ctIon for Private Registered Providers of Social Housing 2022. I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Art and the Housing and Regeneration Act 2008, and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515){bl of the Act. Other Matters Your attention is to drawn to the fact that the charity has prepared the financial statements in accordance wh the Statement of Recommended Pracb'ce applicable to Charities 2019 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) in preference to the Accounting and Reporting by Charities.. Statement of Recommended practi issued on l April 2005 which is referred to in the extant regulations but has been withdrawn. We understsnd that this has been done in order for the accounts to provide a true and fair view in accordance with UK Generally Accepted Accounting Pracknce. Independent examinerfs statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respect of the Trust as required by section 130 of the Act- or 2. the accounts do not accord with those records. or 3. the accounts have not been prepared in accordance with the requirements of the Housing and Regeneration Act 2008 and the Accounty'ng Direction for Private Registered Providers of Social Housing 2022 but any requirement that the financial statements give a 'true and tsir view, is not a matter considered as part of an independent eKamination. I have no concerns and have come atross no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed.. Name.. Elizabeth Hatchman Relevant professional qualification or membership of professional bodies (if any): ACA Address= 150 Minories, London, EC3N ILS Date: 30 September 2025
Page 12 King George V Memorial Houses Balance Sheet As at 31st March 2025 2025 2024 Fixed Assets Housing Propee5 Investments 339,059 490,704 829,763 345,931 501,575 847,506 io Current Assets Debtors Cash at Bank and In Hand li 3,777 42,093 45,870 3,703 29,885 33,588 Creditors.. amounts falling due within one year 12 (79,566} (57,254) Net Current Assets (33,696) 123,666) Total Net Assets 796,067 823,840 Funds Unrestricted fLJnds Restricted ftjnds Total funds 687,106 108,961 796,067 712,083 111,757 823,840 13 The financial statements were approved by the Trustees on 25 September behalf by: 2025 and signed on their Lts2511.JU.4BGMT4L Mark MellLJish (Chairl Trustee Trustee Joshua Reddaway
Page 13 King George V Memorial Houses statement of Cash Hows For the year ended 31st March 2025 2025 2024 Net cash (used in)Iprovided by Operating Activitie5 14,746 5,748 Cash flows from Investing Activities Purchase of tangible fixed assets Dividends re1Vj Interest received Net cash provided by/(used in) Investing Activities 17,0151 4,127 350 (2,5381 199,695) 1,120 (94,529) Cash Flows from Financing Artivities Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the 12,208 29,885 188,781) 118,666 Cash and cash equivalents at the end of the year 42,093 29,885 Cash flows from Operating Activities Net Income/{Expenditure) for the year Depreciation Investment Income and Interest Re1vable (Increase)IDecrease in Debtors IncreasellDecrease) in credOr5 LossllGain) on Disposal of Components (Gainsl/Losses on Investments (27,773} 10,227 (4,4771 (741 22,312 3,660 10,871 14,746 22,164 12,971 113,031) 1671) 17,041 8,802 (41,528) 5,748 Changes in Net Funds At 0110412024 Cash Flows At 3110312025 Cash at bank and in hand
Page 14 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Accounting Polities (a) status King George V Memorial Houses is an unincorporated charity registered in England and Wales, registered number 212358. The principal office address is as disclosed on page l of the annual report. The presentstional currency is the Pound Sterling (£1. (b) Basls ofAccountlng The financial statements have been prepared in accordance with the Ststement of Recommended Practi.. Accounting and Reporting by Charities, in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102} (second edition issued in October 20191, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 1021. The accounts comply with the Charities Act 2011, the Housing and Regeneration Act 2008, the Accounting Direction for S(tial Housing in England 2022. The accounts a prepared on the historical cost basis of accounting except that the listed investments are shown at their market value at the Statement of Financial Posftion date. The financial statements have been prepared to give a'true and fair, wew and have departed from the Charities (Accounts and RetK>rts) Regulations 2008 only to the extent required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) Second Edition issued in October 2019 rather than the Accounting and Reporting by Charities.. Ststement of Recommended Practice effective from l April 2005 which has since been withdravvn. King George V Memorial Hous constitutes a public benefit entr'ty as defined by FRS 102. The trustees considers there are no material UnrtaIntieS about the charitys ability to continue as a going concem. (c) Income." l income is recognised once the Charity has entiuement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. Income from mshOU5e Accomm{atIOn Presents weekly Maintenan and service contributions re1vable from residents. Investment income is earned through holding assets for investment purpose5 such as shares. It included dividends and interest. The Trustees consider it is not practical to identify investment management costs incurred within funds managed by M&G and CCLA with reasonable accuracy the investment income is reported net of these costs. Interest income is recognid using the effective interest method and dwidend income is recognised as the Charity's right to receive payment is established. Social Housing Capitsl grants are recognised only when receivable, or in the period in whid) a scheme is completed where the amount of the grant has been determined. Grants are reflected in the Fixed Asset Fund.
Page 15 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Accounting Policies (continued) (d) Expenditure.. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, 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 classified by activity. The costs of each activity are made up of the total of dirert costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shad costs which contribute to more than one attivity and support costs which are not attributsble to a single artivity are aprtIoned between those attivities on a basis consistent with the use of resources. Expenditure Dn charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated supw)rt costs. The Charity is not registered for VAT, therefore all expenditure is shown inclusive of Irrecoverab VAT. (e) Housing Properties.. King Georye V Memorial Hou*s were estsblished in 1936 and there is no record of the original cost and no value is attributed thereto. The Housing Properties cost relates to improvements carried out since 1993 which partly were funded by a Housing and Communib'es Agency Grant. Housing propertie5 are stated at depreciated cost. The eost 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 comtxinents identified and the depreciation rate applied to each component are set out below- Land Main fabric Roof Structure and covering WindDW5 & external doors Boilers Kitchen throoms Mechanical systems Electrics Fire Alamis/Warden Call not depreciated Over 70 years Over 70 years Over 30 years Over 15 years Over 20 years Over 30 years Over 30 years Over 40 years Over 15 years (f) Investments.. Fixed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market pri or the share of the Net Asset Value of the fund lif unlisted). All gains and losses are taken to the Statement of Financial Activities as they arise. The Ststement of Financial Ath"vits"es includes all net gains and losses arising on revaluation and disposals throughout the year. (g) Debtors.. Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. (h) Cash atbank and in hand." Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months Dr less from the date of acquisition or opening of the depDSit or similar account.
Page 16 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Accounting Policies (continued) (i) Credltors.. Liabilitie5 and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to setde the debt or the amount it has received as advanced payments for the goods or ServIS it must prowde. (i) FinancialInstruments.' The Charty only holds basic financial instruments. The finanaal assets and financial liabilities of the Charity are as folltWS'. Debtors- trade and other debtors are basic financial instruments and are debt instruments measured at am05ed cost as detailed in Note 12. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instrument and is measured at fatr value. Liabilitie5- trade creditors, accruals and other creditors are classified as financial instruments, and are measured at amorbsed cost as detailed in Note 13. (k) FundAccounting.' General funds are unrestricted funds which are available for use at the discrekn.on of the Trustees in furtherance of the general objertives of the Charity and which have not been designated for other txjrposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of eath designated fund is set out in the notes to the financial statements. Restrirted funds are funds which are to be used in accordan with specific restrictions imposed by donors Dr which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. (i) Signir Icant Management Judgenients and Estsination Uncertainties The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charty's accounting ll(leS and that have the most significant effect on the amounts recogni*d in the financial statements.. The charity accounts for its expenditure on housing properties using component accounting. Under component accountingi the housing property is divided into those major components which are considered to have substantially different useful economic lives. Judgement IS Used in allocakn.ng property costs between components {land, structure, kitchens, bathrooms etc) and in determining the useful economic lives of each component.
Page 17 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Housing propety éepreciation is calcukited on a component by component basis. The identification of such compDnents is a matter of judgement and may have a material impact Dn the depreciation charge. The components selected are those which reflect how the major repairs to the property are managed. Usefvllives ofdewecFbk a55ets Management reviews its estimate of the useful live5 of depreaable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to changes io decent homes standard requiring frequent replacement of comrK>nents A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectible. Income from Charitable Artivities 2025 2024 Almshouse Accommodation Residents Contributions Service Charges Voids 63,963 4,567 63,573 3,211 12,852) 63,932 68,530 Income from Investments 2025 2024 Deposit Interest Investment Income 350 3,107 1,120 11,911 Expenditure on Charitable Activities 2025 2024 AInhoUSe Accommodation Servi Maintenance Bad Debts Depreaats"on Replacement of fixed asset components Support costs {Note 5) 4,557 51,197 2,635 50,874 13,399 12,971 8,802 21,045 96,327 19,248 88,401
Page 18 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Support Costs 2025 2024 Almshouse Accommodation Management charge5 Bank charges Residents, welfare Subscription Legal and professional f*s Governan costs 15,816 15,816 48 503 1,330 730 2,618 21,045 46 1,131 1,009 1,200 19,248 Included within Govemano Costs is independent examiner'5 remuneration amounting to £1,200 excluding VAT £1,000 (2024.. independent examiner's remuneration £2,268, excluding VAT £1,890). Social Housing Artivities 2025 2024 Turnover from Sooal Housing Attivities OkErating Costs Operab"ng deficit and net deficit from social housing actiwties 68,530 88,401 63,932 96,327 {19,871) 132,395) Taxation King George V Memorial Houses is a registered Charity, and is, therefore, exempt from liability to taxation on Income and Capital Gains.
Page 19 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 Housing Properties Total Completed Housing Properties At 1st April 2024 Works to existing properties Components replaced At 31st March 2025 419,730 7,015 3,660 423,085 Accumulated Depreciation At 1st April 2024 Charye for the year Depreciation released on components replaced At 31si March 2025 73,799 13,399 13,172 84,026 Net Book Value At 31st March 2025 339,059 At 31st March 2024 King George V Memorial Houses were established in 1936. There 15 no record of the original cost and no value is attributed thereto. The above detsils relate to improvements carried out Sin 1993, which were partly funded by a Homes and Communities Agency Grant of £195,597. King George V Memorial Houses holds the freehold to the land on which these improvements are situated. Capital Grants 2025 2024 Aggregate Amount Received At 1st April 2024 and 31st March 2025 195,597 195,597 Released to Statement of Financial Activbties At 1st April 2024 and 31st March 2025 195,597 195,597 Capital Grants Carrying Value
Page 21 King George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 io. fixed Asset Investments 2025 2024 Market Value.. At 1st April 2024 Accumulated income Unrealised gainslllosses) on investhents At 31st March 2025 501,575 452,197 7,850 41,528 501,575 (10,871) 490,704 Historical cost a5 at 31st March 2025 161095 161095 Included in fixed asset investhents is financial assets of £490,704 (2024.. £501,575} measured at fair value through net incomel(expenditure). ii. Debtors: amounts due within one year Amounts dLJe from residents Prepayments and accrued income 3,074 703 3,777 2,051 1,652 3,703 12. Creditors: amounts due within one year Trade Creditors Accruals and other creditors Amounts due to related organisations (Note 151 2,632 5,681 71,253 79,566 30,297 5,720 21,237 57,254
Page 23 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 13. Funds (continued) Cyclical Repaits and Maintenance ReseNe This designated fund represented amounts set aside for cyclical Maintenan to meet costs in excess of bLJdgeted expenditure for any year, and is considered adequate at this point in time. Extraordinary Repairs Reserve This designated fund represented amounts set aside to cary out major repairs on Housing Properknes. With the advent of component accounting, major repairs are usually capitalised. The level of the reserve is considered adequate to cover any such costs that are likely to be charged to the revenue account. Fixed Asset Fund This restricted fund represents Social housing grants recognised within income. A portion of the depreciation of housing properties 15 charged against this fund annually over the life of the pmperties which the grants funded. Social housing grants may be repayable if the charity sells a propety or ceases to use them for qualifying pur[x. 14. Net Assets Between Funds Unrestricted Funds Restricted Funds 2025 Total Housing Propee5 Investments Net Current Assets 230,098 490,704 (33,6961 687,106 108,961 339,059 490,704 (33,696) 796,067 108,961 Unrestricted Funds Restrirted Funds 2024 Totsl Housing Properbes Inve5bnents Net Current Assets 234,174 501,575 123,666) 712,083 111,757 345,931 501,575 (23,666) 823,840 111,757 15. Related Party Transactions There is 112024: 1) related part to King George V Memorial Houses which is Housing Pathways Trust. All employees joinvy employed by Housing Pathways Trust and King George V Memorial HoLJses with an agreed fee of 20Wo of Residents contribution including allocated staff costs. Housing Pathways Trust tharged the Charity £15,816 during the year12024: 19,9931- Amounts due to Housing Pathways Trust at the year-end amounted to £71,253 (2024.. £21,237). In the year, trustees, remuneration totaled £nil (2024.. £nil).
Page 24 Ing George V Memorial Houses Notes to the Financial Statements For the year ended 31st March 2025 16. Housing Units The Charity owned and managed 12 units of sheltering housing at 31 March 2025 and 31 March 2024. 17. Capital Commitments At 31 March 2025, there were no known capital c(mmthents.