Charity number: 212828
Richard Watts and the City of Rochester Almshouse Charities
Trustees' report and financial statements
for the year ended 31 December 2020
Richard Watts and the City of Rochester Almshouse Charities
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 - 2 |
| Trustees' report | 3 - 9 |
| Independent auditor's report on the financial statements | 10 - 13 |
| Statement of financial activities | 14 |
| Balance sheet | 15 |
| Statement of cash flows | 16 |
| Notes to the financial statements | 17 - 36 |
Richard Watts and the City of Rochester Almshouse Charities
Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 December 2020
Trustees
Michael Robin Bailey Terence James Burton (resigned 31 January 2020) Alex Clarabut Martin Anthony Cook Geoff Ettridge Barrie James Fewtrell Catherine Mary Gore Hilary Harwood Roger Kenneth Hawkes Sharon Howell Liz Janz Colin McCarthy Linda Reay Peter James Smith Kamaldeep Tesse Elizabeth Whitlam (resigned 30 June 2020)
Charity registered number
212828
Principal office
Administrative Offices Watts Almshouses Maidstone Road Rochester Kent ME1 1SE
Clerk / Chief officer
Jane Rose
Independent auditor
Kreston Reeves LLP Chartered Accountants Montague Place Quayside Chatham Maritime Chatham Kent ME4 4QU
Bankers
Barclays Business Banking 263-265 High Street Chatham Kent ME4 4BZ
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Richard Watts and the City of Rochester Almshouse Charities
Reference and administrative details of the Charity, its Trustees and advisers (continued) for the year ended 31 December 2020
Solicitors
dgb Solicitors LLP incorporating Winch & Winch The Captain's House Central Avenue Pembroke Chatham Maritime Kent ME4 4UF
Stockbrokers
Canaccord Genuity Wealth Ltd 41 Lothbury London EC2R 7AE
Building Surveyors
J A Warner Ltd The Guard House Church Lane The Historic Dockyard Chatham ME4 4TE
Chartered Valuation Surveyors
Sibley Pares Chartered Surveyors 1 Ashford Road Maidstone Kent ME13 5BJ
Insurance Brokers
Erskine Murray Ltd MW House 1 Penman Way Grove Park Leicester LE19 1SY
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report for the year ended 31 December 2020
The Trustees present their annual report together with the audited financial statements of the Richard Watts and the City of Rochester Almshouse Charities (the "Charity") for the year ended 31 December 2020.
Objectives and activities
a. Policies and objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The Scheme provides for the net income, after payment of certain specified expenses, to be applied by the Trustees for the benefit of the residents of the Almshouses or for relief in sickness or in need of persons resident in the area formerly known as the City of Rochester (hereafter called "the City"). A Charity Commission Scheme dated 23 August 2016 states that "the City" includes those who are resident in postcode areas ME1 and ME2.
There have been no changes in the Charity's objectives since the last annual report.
b. Grant-making policies
The Scheme states that the Charity can only accept applications for funding of projects and grants from within the ME1 and ME2 postcode areas and from those assisting persons resident in these postcode areas.
Achievements and performance
a. Key performance indicators
The Trustees monitor the Charity's performance throughout the year. KPIs have been identified for each of the Board Committees. The following KPIs are reviewed annually:
House and Grants
Achieve at least 95% occupancy of almshouse accommodation Allocate and spend at least 90% of the Grant Funds.
Estates/Health & Safety
Arrears level to be kept to a minimum – seek speedy settlement of rents owed - achieve at least 95% of all rents due.
Achieve at least 95% occupancy of all commercial and residential properties
Finance & Investment
In the context of the Annual Budget, the Income, Expenditure & the net out-turn to be + or – 10% of projections. Balance of unrestricted Income Funds to be at least 6 months' running costs (50% budgeted expenditure for the year)
Investment Income to be achieved within + or - 10% of the PIMFA (Personal Investment Management and Financial Advice Association) Income Yield
Remuneration & Staffing
Overtime costs to be no more than 4% of the total wage bill Staff sickness rates to be less than 5%
Trustee Commitment
Meeting attendance – overall 85% attendance pa Less than 12.5% turnover (excluding scheduled retirements)
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Achievements and performance (continued)
b. Review of activities
In addition to the Chair, Mrs Alex Clarabut and Vice Chair, Mrs Linda Reay, a number of Trustees held key positions during the year:-
Estates – Chair – Mr Michael Bailey, Vice Chair - Mr Martin Cook House & Grants – Chair - Mrs Catherine Gore, Vice Chair – Mrs Liz Janz Remuneration & Staffing – Chair - Mr Colin McCarthy, Vice Chair - Mrs Linda Reay Finance & Investment - Chairman – Mr Peter Smith and Vice Chair – Mrs Kam Tesse Internal Auditor – Mrs Kam Tesse
New probationary Trustee, Keith Povey has been appointed. Following the introduction of a Trustee Code of Conduct and Trustee Recruitment Policy, he will not be formally confirmed in post until he completes his probationary period.
2020 has been a very challenging year with the Coronavirus pandemic permeating almost everything. To all intents and purposes, it has been business as usual though behind the scenes, life wasn’t the same. Trustees continued to make decisions though most meetings were conducted using Zoom. Hand sanitising, maintaining a distance and wearing face masks soon became the norm. Thankfully no residents or staff were lost to Covid 19 though one resident tested positive and various members of staff have had to self-isolate. Despite everything, during 2020, the Charity continued to provide almshouse accommodation and support needy people within ME1 & ME2. Sadly one resident who had been suffering mental health issues died when she fell from a window of her second floor flat. The coroner recorded a narrative conclusion: it was not possible to establish they had intended to take their own life or whether this was due to a psychotic episode. Seven new residents were accepted with five of them moving into the almshouses before year end. Through the work of the House & Grants Committee together with the support of the staff, there was an occupancy rate of 97.6% of the almshouse accommodation during the year. The Weekly Maintenance Contribution from residents was increased by a further planned 15% in January 2020 to £64.65 for single occupancy and £91.02 for couples to help fund the running costs and maintenance works programme.
In the year, support grants worth £69,876 (2019: £72,951) were made to 9 local organisations and to 12 schools. 15 children benefitted from awards for school uniform. In addition 9 awards were made for domestic items for families and 6 awards were made to adults who were in financial difficulty. £20,000 was awarded for the counselling initiative managed by North Kent Mind which continued, albeit remotely due to Covid 19, the work they started in 2017 by working in four schools serving children who live within the catchment; Rochester Grammar School, Sir Joseph Williamson Maths School, Strood Academy and Thomas Aveling School. In addition, one to one counselling continued to be provided to young people by Breathing Space, a professional counselling service based in Rochester.
For older members of the community, the Charity provided outpension support to an average of 47.6 individuals (2019: 50.5) with 6 Outpensions discontinuing and 3 new Outpensioners being added during 2020. A gardening service was provided to support 5 people living at home and the Medway Helpline was paid for one person. A subsidised Home Help service was provided for 52 people, 13 of whom had the service provided free of charge.
The financial statements for 2020 continue to reflect the effectiveness of the management and administration of the Charity that is supported by a strong and proactive Board of Trustees through the work of its five Committees. Rental income from investment properties continued to provide the majority of the Charity's income. Rents invoiced for 2020 amounted to £718,731. However, with many businesses being unable to operate, the rental arrears level has been poor by the Charity’s usual standards with just under 10% of 2020 rents unpaid. The vast majority of the shortfall is accounted for by unpaid commercial rents (12.9%). Occupancy levels dropped with commercial properties achieving 87% occupancy. However, residential lettings were good, achieving 97.7% occupancy. Repair and quinquennial works at both almshouses and rental properties were kept to a minimum with only two bathroom and three kitchen refurbishments carried out at the almshouses.
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Achievements and performance (continued)
This year, a new gardener was recruited to replace the one that had retired. In November 2020, Trustees agreed that as of January 2021, staff not on the National Living Wage would receive an inflationary increase of 1.5%.
During 2020 given the situation with Covid 19, The Six Poor Travellers’ House did not re-open until August when strict social distancing and other measures were employed. However this did not deter visitors and it remained open until early October, staffed by the Custodian and her partner who had successfully implemented changes to the displays and garden during lock-down that were agreed last year.
In the place of the annual Christmas lunch which could not go ahead, residents and staff received Christmas boxes filled with festive treats.
Overview
The results for the year show a surplus on unrestricted funds before transfers of £106,117 and on endowment funds of £157 meaning that net income before investment gains amounted to £106,274 (2019: £22,859).
Incoming resources decreased from £1,411,319 in 2019 to £1,264,641 in 2020. Investment Income decreased by 10% to £1,012,239 whilst income from charitable activities increased slightly to £238,928.
Total resources expended decreased by 17%, from £1,388,460 to £1,158,367 in 2020.
At year end the charity's investments comprised investment properties of £13,558,500 and listed investments of £7,986,237.
Declines in the above investments together with the surplus for the year, resulted in a negative net movement in funds of £498,111 to be deducted from total funds brought forward, meaning the total assets at 31 December 2020 were £25,605,038. Endowment funds totalled £23,716,278 (2019 - £24,245,179), designated funds totalled £575,460 (2019- £565,727) and general funds totalled £1,313,300 (2019 - £1,292,243).
c. Safeguarding
Prioritising safeguarding is fundamental to the way the Charity operates. Whether it is how residents are treated by staff with daily checks on their wellbeing or looking after their long term best interests when they are facing illness, including dementia. Or whether it is the attitude of Trustees and the decisions they take when assessing grant applicants or even the way Site staff deal with tenants at rental properties who are experiencing difficulties, safeguarding and protecting people come first. Health and safety permeates every aspect of the organisation.
d. Investment policy and performance
The principal objective is to invest funds for capital growth whilst maintaining income levels sufficient to assist in meeting the expenditure of the Charity and the minimum level of reserves. To assist in the objective, the Board of Trustees appoints advisers upon such terms as deemed appropriate to make recommendations as to the sale and/or purchase of investment holdings. Should the likely income be more than sufficient to meet the above requirements then consideration may be given to investing a proportion of the available funds in more growth orientated funds with a switch back to greater income producing funds should the need arise.
The Trustees regularly review the investment returns and actual income and expenditure against budgets.
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
The 'reserves' of the Charity are the resources that are available to spend on the Charity's purposes once all commitments have been met and planned expenditure covered. They do not include the Endowment or Designated Funds.
The balance of the reserves is maintained in the Unrestricted Income Funds as adjusted for the surplus for the year after transfers. The Charity has a commitment to maintain its properties in good repair, to apply the Charity's income for the benefit of the Almshouse residents and to meet reasonable requests under grant making provisions. To ensure that those commitments may continue to be met should there be a temporary fall in Property and/or Investment Income and/or the need for unplanned expenditure, it is the Trustees' policy that the balance of the Unrestricted Income Funds be maintained between 6 months' and one year's running costs.
Such range is based on past experience and forward financial projections over the next five year period. It is the responsibility of the Finance and Investment Committee to consider that range annually based on the updated five year projections and any agreed development plans and make any appropriate recommendations to the Board of Trustees.
At 31 December 2020 the general reserves amounted to £1,313,300 (see note 18) which is slightly higher than one year's running costs.
Endowment Funds
These comprise the Permanent Endowments of the Charity.
Designated Funds
Cyclical Maintenance Fund
Established under the Charity Commissioner's Scheme to provide for the ordinary maintenance of the Poor Traveller's House and the Almshouses belonging to the Charity.
Extraordinary Repairs Fund
Established compulsorily under the Charity Commissioner's Scheme to provide for the extraordinary repair, improvement or rebuilding of the Poor Traveller's House and the Almshouses.
General Repairs Fund
Established voluntarily under the Charity Commissioner's Scheme to provide for the extraordinary repair, improvement or rebuilding of the property belonging to the charities other than the Almshouses.
Planned Maintenance Fund
Established in 1985 in accordance with provisions in the leases to provide for the maintenance, major repair and refurbishment works to certain properties in the High Street, Chatham. The fund comprises leaseholders' service charge payments.
Memorial Fund
Established voluntarily in 2014, this fund comprises legacies and in memoriam gifts to be applied to projects for the enjoyment of residents and staff.
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Financial review (continued)
Poor Travellers' House Fund
This fund comprises donations received at the House which are applied to the acquisition of small items for the House and garden.
Apprenticeship Support Fund
This fund comprises a grant received towards work with apprentices.
Structure, governance and management
a. Constitution
The Charity was originally founded under the will of Richard Watts in 1579. It is regulated by a Scheme of the Charity Commissioners dated 29 November 1977 when the Charities of Richard Watts, Sir John Hayward's Almshouses and St. Catherine's Hospital were grouped for administration purposes. The Charity is linked with the Sir John Hayward and Richard Watts Educational Charities and the William Mantle Trust following an order issued by the Charity Commission in 2015. The Charity Commission amended the Scheme on 23 August 2016 to clarify that any reference to the City of Rochester includes those who are resident in postcode areas ME1 and ME2. Finally, in January 2018, the Charity Commission agreed that those people who wished to return to Rochester to be close to their friends and family in their old age, but who at the time of applying do not themselves live within ME1 or ME2, could be considered.
b. Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Charity Commission Scheme.
c. Organisational structure and decision-making policies
The Charity's structure is comprised of five Committees which are constituted annually. Each Committee has a Chairman.
The Clerk/Chief Officer and the Finance & Estates Manager are empowered by the Board of Trustees to sign cheques to a maximum of £10,000. Cheques in excess of this sum are signed by a Trustee and the Clerk/Chief Officer or Finance & Estates Manager. To ensure that a proper system of controls exists for the operation of delegated authority, one Trustee has been appointed to carry out random inspections of activities. The Trustee carrying out the inspection reports their findings to the Board at the following meeting.
Finance and Investment Committee (meets 4 times a year)
The Committee considers the estimates of income and expenditure and audited accounts and discusses any appropriate matters with the auditors and reports thereon to the Board of Trustees. It is authorised to make changes in the investment portfolio and to subsequently report to the Board of Trustees. The effects of the on- going financial conditions continued to be felt as the level of interest from the bank deposits remained low. In addition, the stock market showed a downturn this year. Together with the professional support of the Charity's brokers, the Committee has been able to achieve a level of income to assist the Board to continue its valuable work in support of those in greatest need in the ME1 and ME2 postcode areas.
House and Grants Committee (full meeting every other month and mini meeting in between as required for decision making purposes)
The Committee deals with the general administration of the Almshouses and considers applications for accommodation, outpensions and grants.
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Structure, governance and management (continued)
Estates Committee (meets six times a year)
The Committee has the responsibility to ensure the maintenance of the fabric and structure of the Almshouses and investment properties. It also has the responsibility for the day to day management of the property portfolio.
The Committee is authorised by the Board of Trustees to consider all proposals for the sale, grant and surrender of leases, insurance matters and generally to protect and enhance the value of the estate. The Committee makes its recommendations after taking advice from the appointed Chartered Valuation Surveyor and Building Surveyor.
Remuneration and Staffing Committee (meets three times a year)
The Committee reviews and makes recommendations to the Board on matters concerning employee remuneration and staffing. Good employee relations in the work place are necessary for the effective performance of the Charity's objectives. This is best achieved by clear communications based on mutual understanding and respect between management and staff entailing the deployment of clearly defined HR systems and procedures. The Committee is tasked to challenge and evaluate these ongoing arrangements through scrutiny of reports received from the Clerk/Chief Officer.
Chairman's Committee (meets up to three times a year)
The Committee reviews Committee Policies and deals with any specific Policy matters. It is also responsible for and co ordinates the range of work and interests of the Charity.
d. Policies adopted for the induction and training of Trustees
All Trustees are encouraged to attend training courses and seminars on a regular basis. All Trustees have Trustee Handbooks that they keep up to date with all relevant policies, accounts and other background information about the Charity.
e. Related party relationships
Trustees regularly “declare an interest” as appropriate and all have completed the questionnaire.
f. Risk management
The Charity's Trustees have given consideration to the major risks to which the Charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks. In order to do this they review annually the major risks and their potential impacts on the way Trustees, supporters or beneficiaries might deal with the Charity. The risks fall into the following categories:
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Governance – from problems recruiting Trustees to adherence to the Scheme
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Operations – from computer systems failure to personal safety
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Finances – from shortfalls in income to insurance cover
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External factors – from adverse publicity to impact of local government policies
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Compliance with law and regulation – from Data Protection to Health & Safety
In addition, new risks are identified and reported at meetings throughout the year and reviewed to ensure that they have minimum impact. Not surprisingly, during the last year, risks tended to focus on coronavirus and its impact on all aspects of operations as well as the impact on our residents and staff, both physically and mentally. A recruitment policy and Trustee Code of Conduct were agreed as well as a change to the number of trustees that are needed. A Business Continuity Plan was agreed for the organisation and moves taken to protect data systems from cybercrime. Attention also focused on fire safety with a number of changes planned. A review of the number of high level windows was carried out and plan to affix window closers on all of them is ready to be enacted once access to the properties involved can be obtained.
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Richard Watts and the City of Rochester Almshouse Charities
Trustees' report (continued) for the year ended 31 December 2020
Plans for future periods
The focus for the coming year will continue to be the management of the Charity's property portfolio, particularly with so many voids to fill. Work continues on refurbishing Almshouse kitchens and bathrooms in order to ensure that they are more accessible to those residing in them. In addition, commercial tenants’ service charges and their relationship to quinquennial works has been reviewed and changes in payment levels are planned for many tenants. Planning will commence on the changes required to residential properties in order that they meet the new EPC standards in 2025.
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report 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 & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed.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.
Auditor
The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Linda Reay Chair
Date:
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Richard Watts and the City of Rochester Almshouse Charities
Independent auditor's report to the Trustees of Richard Watts and the City of Rochester Almshouse Charities
Opinion
We have audited the financial statements of Richard Watts and the City of Rochester Almshouse Charities (the 'charity') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the charity, 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. 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.
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Richard Watts and the City of Rochester Almshouse Charities
Independent auditor's report to the Trustees of Richard Watts and the City of Rochester Almshouse Charities (continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, set out on page 9, the Trustees are responsible for the preparation of 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.
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Richard Watts and the City of Rochester Almshouse Charities
Independent auditor's report to the Trustees of Richard Watts and the City of Rochester Almshouse Charities (continued)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor 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 an Auditor's report 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:
Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the charity and the charitable sector generally, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, GDPR and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charity SORP 2019 and other charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to fraudulently or erroneously amending income and expenditure levels. Audit procedures performed by the engagement team included:
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Discussions with management and Trustees and assessment of known or suspected instances of noncompliance with laws and regulations (including health and safety) and fraud; and
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Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
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Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation; and
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Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions.
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. Also, 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
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Richard Watts and the City of Rochester Almshouse Charities
Independent auditor's report to the Trustees of Richard Watts and the City of Rochester Almshouse Charities (continued)
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
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Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditor's 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Kreston Reeves LLP Chartered Accountants
Chatham Maritime
Date:
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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Richard Watts and the City of Rochester Almshouse Charities
Statement of financial activities for the year ended 31 December 2020
| Note Income and endowments from: Donations and legacies 4 Charitable activities 5 Investments 6 Total income and endowments Expenditure on: Raising funds 7,8 Charitable activities Total expenditure Net income before net (losses)/gains on investments Net gains/(losses) on investments Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2020 £ 13,474 238,928 1,002,222 1,254,624 232,654 915,853 1,148,507 106,117 (75,327) 30,790 1,857,970 30,790 1,888,760 |
Endowment funds 2020 £ - - 10,017 10,017 - 9,860 9,860 157 (529,058) (528,901) 24,245,179 (528,901) 23,716,278 |
Total funds 2020 £ 13,474 238,928 1,012,239 1,264,641 232,654 925,713 1,158,367 106,274 (604,385) (498,111) 26,103,149 (498,111) 25,605,038 |
Total funds 2019 £ 51,804 233,958 1,125,557 |
|---|---|---|---|---|
| 1,411,319 | ||||
| 308,642 1,079,818 |
||||
| 1,388,460 | ||||
| 22,859 761,764 |
||||
| 784,623 | ||||
| 25,318,526 784,623 |
||||
| 26,103,149 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 17 to 36 form part of these financial statements.
Page 14
Richard Watts and the City of Rochester Almshouse Charities
Balance sheet as at 31 December 2020
| Note Fixed assets Tangible assets 13 Investments 15 Investment property 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Net assets Charity funds Endowment funds 18 Unrestricted funds 18 Total funds |
272,372 623,714 896,086 (311,908) |
2020 £ 3,476,123 7,986,237 13,558,500 25,020,860 218,474 556,221 774,695 (256,216) 584,178 25,605,038 23,716,278 1,888,760 25,605,038 |
2019 £ 3,476,123 8,296,542 13,812,005 |
|---|---|---|---|
| 25,584,670 518,479 |
|||
| 26,103,149 | |||
| 24,245,179 1,857,970 |
|||
| 26,103,149 |
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Linda Reay Chair
Peter James Smith Vice Chair
Date:
The notes on pages 17 to 36 form part of these financial statements.
Page 15
Richard Watts and the City of Rochester Almshouse Charities
Statement of cash flows
for the year ended 31 December 2020
| Note Cash flows from operating activities Net cash used in operating activities 21 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from sale of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 22 The notes on pages 17 to 36 form part of these financial statements |
2020 £ (904,171) 1,012,239 616,733 (657,308) 971,664 67,493 556,221 623,714 |
2019 £ (1,159,867) |
|---|---|---|
| 1,125,557 882,833 (759,097) 1,249,293 |
||
| 89,426 466,795 556,221 |
Page 16
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
1. General information
Richard Watts and the City of Rochester Almshouse Charities is a Charity registered in England. The Charity's registered address is Administrative Offices, Watts Almshouses, Maidstone Road, Rochester, Kent ME1 1SE.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements 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 has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Richard Watts and the City of Rochester Almshouse Charities meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The Trustees assess whether the use of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Whilst the impact of the Covid-19 pandemic has been assessed by the Trustees, so as far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Charity's future activities. However taking into consideration the Charity's level of reserves and the actions they've taken, the Trustees believe that the Charity will be able to continue in operational existence for the foreseeable future.
Page 17
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
2. Accounting policies (continued)
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Net Gains/(Losses) on investments’ in the Statement of financial activities.
Page 18
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
2. Accounting policies (continued)
2.7 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.
2.8 Cash at bank and in hand
Cash at bank and 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.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it 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 settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 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.
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the Trustees' Report.
Endowment funds comprise the permanent endowments of the Charity.
2.13 Freehold properties - Almshouses
Freehold properties are included at valuation as at 1 January 1973 or 31 December 1977 or at subsequent cost as detailed in note 13 to the financial statements.
Freehold properties are not depreciated. In no case is the estimated useful life of the building less than fifty years and the estimated residual value is likely to be more than the amount at which the properties are carried in the balance sheet. Any depreciation would, therefore, be immaterial and no provision has been made in the financial statements.
Page 19
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
2. Accounting policies (continued)
2.14 Investment properties
Investment properties are long-term assets, which generate income. They are included at market value in accordance with the Statement of Recommended Practice on accounting by charities. Please see note 14 to the financial statements.
2.15 Furniture and equipment
The cost of furniture and equipment has been charged to the Statement of Financial Activities on acquisition.
3. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgment:
I nvestment properties at Market value
The Charity holds investment property with fair value of £13,558,500 at the year end (see note 14). In order to determine the fair value of investment property the Charity has engaged independent valuation specialists with experience in the location and nature of the property being valued. They have used a valuation technique based on comparable market data. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
Tangible fixed assets - Cost model
The Charity has recognised tangible fixed assets with a carrying value of £3,476,123 at the reporting date (see note 13). These assets are stated at their cost less provision for depreciation and impairment. The Charity's accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the Charity determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors such as the expected use of the acquired asset and market conditions. At subsequent reporting dates the Trustees consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the Charity undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the Charity’s forecasts for the foreseeable future which do not include any restructuring activities that the Charity is not yet committed to or significant future investments that will enhance the asset’s performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes.
Page 20
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
4. Income from donations and legacies
| Donations Legacies Total 2019 |
Unrestricted funds 2020 £ 5,695 7,779 13,474 51,804 |
Total funds 2020 £ 5,695 7,779 13,474 51,804 |
Total funds 2019 £ 11,804 40,000 |
|---|---|---|---|
| 51,804 | |||
5. Income from charitable activities
| Residents' maintenance contributions Home Help income Other income Total 2019 |
Unrestricted funds 2020 £ 211,935 17,481 9,512 238,928 233,958 |
Total funds 2020 £ 211,935 17,481 9,512 238,928 233,958 |
Total funds 2019 £ 199,156 24,516 10,286 |
|---|---|---|---|
| 233,958 | |||
Page 21
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
6. Investment income
| Rents receivable Service charges receivable Income from listed investments Bank interest Insurances recoverable Total 2020 Total 2019 |
Unrestricted funds 2020 £ 718,731 22,501 253,043 - 7,947 1,002,222 1,114,252 |
Endowment funds 2020 £ - - 10,017 - - 10,017 11,305 |
Total funds 2020 £ 718,731 22,501 263,060 - 7,947 1,012,239 1,125,557 |
Total funds 2019 £ 755,385 23,538 337,599 35 9,000 |
|---|---|---|---|---|
| 1,125,557 | ||||
7. Property expenditure Costs of raising voluntary income
| Commercial property repairs and maintenance Residential property repairs and maintenance Voids expenditure Rent payable Insurances Land and estate agents Solicitors Surveyors Bad debts Total 2020 Total 2019 |
Unrestricted funds 2020 £ 32,759 45,279 4,697 1,471 15,172 32,081 15,586 23,333 37,497 207,875 282,364 |
Total funds 2020 £ 32,759 45,279 4,697 1,471 15,172 32,081 15,586 23,333 37,497 207,875 282,364 |
Total funds 2019 £ 48,782 114,139 3,402 1,838 13,634 47,132 3,849 40,792 8,796 |
|---|---|---|---|
| 282,364 | |||
Page 22
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
8. Investment management costs
| Stockbroker's fees Total 2019 |
Unrestricted funds 2020 £ 24,779 26,278 |
Total funds 2020 £ 24,779 26,278 |
Total funds 2019 £ 26,278 |
|---|---|---|---|
9. Analysis of grants
| Grants payable Total 2019 |
Grants to Institutions 2020 £ 60,941 55,933 |
Grants to Individuals 2020 £ 8,936 17,018 |
Total funds 2020 £ 69,877 72,951 |
Total funds 2019 £ 72,951 |
|---|---|---|---|---|
10. Analysis of expenditure by activities
| Almshouse Outpensions Home Help Poor Traveller's House Total 2020 Total 2019 |
Direct costs 2020 £ 493,000 38,200 27,848 23,992 583,040 699,948 |
Grants payable (note 9) 2020 £ 69,877 - - - 69,877 72,951 |
Support costs 2020 £ 272,796 - - - 272,796 306,919 |
Total funds 2020 £ 835,673 38,200 27,848 23,992 925,713 1,079,818 |
Total funds 2019 £ 986,910 40,615 31,680 20,613 |
|---|---|---|---|---|---|
| 1,079,818 | |||||
Page 23
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
10. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Staff costs General and water rates Insurances Oil, gas and electricity Repairs, maintenance and cleaning Garden upkeep Telephone Sundry expenses Outpensions Health and safety Total 2020 Total 2019 |
Almshouse 2020 £ 232,183 14,749 14,340 45,963 125,212 7,290 1,340 13,806 - 38,117 493,000 607,040 |
Out- pensions 2020 £ - - - - - - - - 38,200 - 38,200 40,615 |
Home Help 2020 £ 27,608 - - - - - - 240 - - 27,848 31,680 |
Poor Traveller's House 2020 £ 7,305 1,136 1,024 823 10,703 - 473 2,528 - - 23,992 20,613 |
Total funds 2020 £ 267,096 15,885 15,364 46,786 135,915 7,290 1,813 16,574 38,200 38,117 583,040 699,948 |
Total funds 2019 £ 256,748 19,054 12,691 44,076 266,451 5,871 2,245 14,433 40,615 37,764 |
|---|---|---|---|---|---|---|
| 699,948 | ||||||
Page 24
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
10. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Printing, stationery and advertising General and water rates Telephone Oil, gas and electricity Insurance Furniture Repairs Office machinery Pensions to former employees Legal and professional fees Sundry expenses Computer equipment Health and safety Auditors' remuneration Auditors' remuneration - non audit Total 2020 |
Total funds 2020 Total funds 2019 £ £ 217,176 205,030 5,323 8,079 1,253 1,239 1,058 3,834 2,275 1,779 12,359 11,424 311 349 4,709 23,838 6,575 10,300 1,824 1,780 1,284 6,064 368 15,657 6,735 6,491 224 117 9,435 8,100 1,887 2,838 272,796 306,919 |
|---|---|
Page 25
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
11. Staff costs
| Wages and salaries Social security costs Other pension costs |
2020 £ 415,480 30,603 38,189 484,272 |
2019 £ 397,188 27,206 37,384 |
|---|---|---|
| 461,778 |
The average number of persons employed by the Charity during the year was as follows:
| 2020 | 2019 |
|---|---|
| No. | No. |
| 27 | 27 |
The average headcount expressed as full-time equivalents was:
| 2020 | 2019 |
|---|---|
| No. | No. |
| 16 | 17 |
No employee received remuneration amounting to more than £60,000 in either year.
During the year, the four (2019 - four) key management personnel received remuneration and benefits, including employer's national insurance contributions, of £174,649 (2019 - £156,081).
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).
During the year ended 31 December 2020, no Trustee expenses have been incurred (2019 - £NIL).
Page 26
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
13. Tangible fixed assets
| Cost or valuation At 1 January 2020 At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Freehold property £ 3,476,123 |
|---|---|
| 3,476,123 | |
| 3,476,123 | |
| 3,476,123 |
Cost and valuation figures include valuations made by the Clerk to the Trustees as at 1 January 1973 and 31 December 1977. The valuation at 1 January 1973 revalued all properties held at that date (£103,200) and the valuation at 31 December 1977 comprised the properties held within Sir John Hayward's Almshouses and St Catherine's Hospital following the amalgamation of the Charities on 29 November 1977 (£130,000). The balance of £3,242,923 comprises subsequent additions at cost.
Page 27
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
14. Investment property
| Valuation At 1 January 2020 Deficit on revaluation At 31 December 2020 |
Freehold investment property £ 13,812,005 (253,505) |
|---|---|
| 13,558,500 |
The investment properties were valued in 2020 by an independent firm of Chartered Surveyors on an open market value for existing use basis.
15. Fixed asset investments
| Cost or valuation At 1 January 2020 Additions Disposals Revaluations At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Listed investments £ 8,296,542 657,308 (751,772) (215,841) |
|---|---|
| 7,986,237 7,986,237 |
|
| 8,296,542 |
Page 28
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
16. Debtors
| Due within one year Trade debtors Prepayments and accrued income Insurance recoverable |
2020 £ 89,858 159,236 23,278 272,372 |
2019 £ 31,680 166,623 20,171 |
|---|---|---|
| 218,474 |
17. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Accruals and deferred income Deferred income at 1 January 2020 Income deferred during the year Amounts released from previous periods Deferred income at 31 December 2020 |
2020 £ 25,102 2,000 284,806 311,908 158,472 172,642 (158,101) 173,013 |
2019 £ 16,530 4,250 235,436 |
|---|---|---|
| 256,216 | ||
| 95,778 158,472 (95,778) |
||
| 158,472 |
Page 29
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
18. Statement of funds
Statement of funds - current year
| Designated funds Cyclical Maintenance Fund Extraordinary Repairs Fund General Repairs Fund Planned Maintenance Fund Memorial Fund Poor Travellers House Fund Apprenticeship Support Fund General funds General Income Fund Total Unrestricted funds |
Balance at 1 January 2020 £ 39,950 122,172 233,551 123,221 46,833 - - 565,727 1,292,243 1,857,970 |
Income £ - - 8,321 22,501 7,779 - - 38,601 1,216,023 1,254,624 |
Expenditure £ - (21,550) (8,213) (13,055) - - - (42,818) (1,105,689) (1,148,507) |
Transfers in/out £ 5,500 3,600 15,000 - - 4,436 6,213 34,749 (34,749) - |
Gains/ (Losses) £ - (4,751) (16,048) - - - - (20,799) (54,528) (75,327) |
Balance at 31 December 2020 £ 45,450 99,471 232,611 132,667 54,612 4,436 6,213 |
|---|---|---|---|---|---|---|
| 575,460 | ||||||
| 1,313,300 | ||||||
| 1,888,760 |
Page 30
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
18. Statement of funds (continued)
| Endowment funds Richard Watts Chatham Intra Sir John Hayward's Charitable Fund St Catherine's Hospital Sir John Hayward's Educational Charity William Mantle Trust Total of funds |
22,689,534 1,612 594,093 650,721 28,345 280,874 24,245,179 26,103,149 |
- - - - 613 9,404 10,017 1,264,641 |
- - - - (200) (9,660) (9,860) (1,158,367) |
- - - - - - - - |
(478,587) (120) (468) (12,660) (328) (36,895) (529,058) (604,385) |
22,210,947 1,492 593,625 638,061 28,430 243,723 |
|---|---|---|---|---|---|---|
| 23,716,278 | ||||||
| 25,605,038 |
Page 31
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
18. Statement of funds (continued)
Statement of funds - prior year
| Designated funds Cyclical Maintenance Fund Extraordinary Repairs Fund General Repairs Fund Planned Maintenance Fund Memorial Fund General funds General Income Fund Total Unrestricted funds |
Balance at 1 January 2019 £ 30,000 99,396 208,427 127,227 6,833 471,883 1,217,959 1,689,842 |
Income £ - 5,594 - 23,538 40,000 69,132 1,330,882 1,400,014 |
Expenditure £ (5,050) (159,900) (50,153) (27,544) - (242,647) (1,140,633) (1,383,280) |
Transfers in/out £ 15,000 159,900 50,153 - - 225,053 (225,053) - |
Gains/ (Losses) £ - 17,182 25,124 - - 42,306 109,088 151,394 |
Balance at 31 December 2019 £ 39,950 122,172 233,551 123,221 46,833 |
|---|---|---|---|---|---|---|
| 565,727 | ||||||
| 1,292,243 | ||||||
| 1,857,970 |
Page 32
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
18. Statement of funds (continued)
| Endowment funds Richard Watts Chatham Intra Sir John Hayward's Charitable Fund St Catherine's Hospital Sir John Hayward's Educational Charity William Mantle Trust Total of funds |
22,128,760 1,420 593,346 630,521 26,249 248,388 23,628,684 25,318,526 |
- - - - 974 10,331 11,305 1,411,319 |
- - - - (200) (4,980) (5,180) (1,388,460) |
- - - - - - - - |
560,774 192 747 20,200 1,322 27,135 610,370 761,764 |
22,689,534 1,612 594,093 650,721 28,345 280,874 |
|---|---|---|---|---|---|---|
| 24,245,179 | ||||||
| 26,103,149 |
Page 33
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
19. Summary of funds
Summary of funds - current year
| Designated funds General funds Endowment funds |
Balance at 1 January 2020 £ 565,727 1,292,243 24,245,179 26,103,149 |
Income £ 38,601 1,216,023 10,017 1,264,641 Income £ 69,132 1,330,882 11,305 1,411,319 |
Expenditure £ (42,818) (1,105,689) (9,860) (1,158,367) Expenditure £ (242,647) (1,140,633) (5,180) (1,388,460) |
Transfers in/out £ 34,749 (34,749) - - Transfers in/out £ 225,053 (225,053) - - |
Gains/ (Losses) £ (20,799) (54,528) (529,058) (604,385) Gains/ (Losses) £ 42,306 109,088 610,370 761,764 |
Balance at 31 December 2020 £ 575,460 1,313,300 23,716,278 |
|---|---|---|---|---|---|---|
| 25,605,038 | ||||||
| Balance at 31 December 2019 £ 565,727 1,292,243 24,245,179 |
||||||
| Summary of funds - prior year | ||||||
| Designated funds General funds Endowment funds |
Balance at 1 January 2019 £ 471,883 1,217,959 23,628,684 25,318,526 |
|||||
| 26,103,149 |
20. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ - 1,352,728 - 847,940 (311,908) 1,888,760 |
Endowment funds 2020 £ 3,476,123 6,633,509 13,558,500 48,146 - 23,716,278 |
Total funds 2020 £ 3,476,123 7,986,237 13,558,500 896,086 (311,908) |
|---|---|---|---|
| 25,605,038 |
Page 34
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
20. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior period
| Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Total |
Unrestricted funds 2019 £ - 1,428,054 - 686,132 (256,216) 1,857,970 |
Endowment funds 2019 £ 3,476,123 6,868,488 13,812,005 88,563 - 24,245,179 |
Total funds 2019 £ 3,476,123 8,296,542 13,812,005 774,695 (256,216) |
|---|---|---|---|
| 26,103,149 |
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: Gains/(losses) on investments Dividends, interests and rents from investments Increase in debtors Increase in creditors Net cash used in operating activities 22. Analysis of cash and cash equivalents Cash in hand |
2020 £ (498,111) 604,385 (1,012,239) (53,898) 55,692 (904,171) 2020 £ 623,714 |
2019 £ 784,623 (761,764) (1,125,557) (130,646) 73,477 |
|---|---|---|
| (1,159,867) 2019 £ 556,221 |
Page 35
Richard Watts and the City of Rochester Almshouse Charities
Notes to the financial statements for the year ended 31 December 2020
23. Analysis of changes in net debt
| At 1 | At 31 | ||
|---|---|---|---|
| January | December | ||
| 2020 | Cash flows | 2020 | |
| £ | £ | £ | |
| Cash at bank and in hand | 556,221 | 67,493 | 623,714 |
24. Operating lease commitments
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
2020 £ 976 3,660 4,636 |
2019 £ 638 - |
|---|---|---|
| 638 |
25. Related party transactions
During the year the Charity paid a grant of £100 (2019 - £100) to Sir Joseph Williamson's Charitable Trust, of which Mrs H Harwood is also a trustee. There were no amounts outstanding at the balance sheet date (2019 - £Nil).
During the year the Charity paid a grant of £100 (2019 - £100) to Rochester Grammar School for Girls Charity, of which Mr M Bailey is also a trustee. There were no amounts outstanding at the balance sheet date (2019 - £Nil).
During the year the Charity paid grants of £Nil (2019 - £16,000) to North Kent Mind. This grant was distributed to four schools. One of which was the Thomas Aveling School, of which Mr M Bailey is a Governor. There were no amounts outstanding at the balance sheet date (2019: £Nil).
During the year the Charity paid grants of £411 directly to the Thomas Aveling School. There were no amounts outstanding at the balance sheet date (2019: £Nil).
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