Charity numbor: 212828 Richard Watts and the City of Rochester Almshouse Charities Trustees. report and flnancial ststsments for the year ended 31 December 2023 Rkhard Walts and the Cty of Rochestsr Almshouse Charitie$ Contents Page Reference and administratlv• dètalls of thg Charity. Its Trustees and advlsers Trustees. report Independent auditor'$ rep4)rt on the financlal statemonts 10-13 Statemenl of financlal actlvltlgs 14 Balance sheet 15 statement of cash Ilows 16 Notes to the financlal statements 17-37 Rlchard Watt$ and the Clty of Rochester Almshouse Charities Referencg and admlni$trative detsils of the Charity. Its Trustees and advhers foi the year endod 31 December 2023 Truste95 Michael Robin Bailey (deceased 29 July 20231 Alex Clarabut Ba￿le James Fewtrell {resigned 25 January 20241 Catherine Mary Gore Iresignad 14 December 20231 Shirley Gurteeft Liz Janz Colin M¢Carthy Keith Povey Linda Reay Peter James Smi(h Kamaldeep Tess• Charity r•gl$ter¢d numbof 212828 Prinelpal offlce Administrative Offices Watts Almshouses MaKlslone Road Ro¢he51er Kent ME1 1SE chlof oxecutlve officer Martin Sissons Independent auditor Kreston Reeves LLP Chartered Accountsnts Slalutory Auditor Montague Place Quayside Chatham Martiime Chatham Kent ME4 4QU Bankgrs Barclays Business Banking 26>265 High Street Chatham Kent ME4 4BZ CCLA Investment Management 1 Angel Lanè London EC4R 3AB Page 1 Richard Watts artd the Clty of Rochoster Almshouse ChaTitles R•fornnce and administratlvo detalls of thè Charlty. its Trustees and advise¥s {continuedl for the year ended 31 Decgmber 2023 Solicitoffs Brachers LLP Sometheld House 59 London R08d Maidstone Kent ME16 8JH Stockbrokers Canaccor(l Genurty Wea￿h Ltd 41 Lothbury London EC2R 7AE Building SuNeyors Consult Construct Ltd Gunpowder Work8 Off Bysing Wood Road Faversham Kent ME13 7UD Chartered Valuation SuNeyors Sibley Pares Chartered Surwors 1 Ashford Road Maidstone Kent ME13 SBJ Insurance Brokers Erskine Murray Ltd MW House 1 Penman Way Grove Park Leicester LE19 1SY Page 2 Rlchard Watts and the Clty of Rochester Almshouse Charlties Trustees. report for the ygar ended 31 December 2023 The frustees present their annual ￿port logetherwrth the audited financial statements ol the Richard Watts and the Cty of Rochester Almshouse Charities (the'charity'l lor the year ended 31 December 2023. Objectlves and act]vltlos . Policies and obSa¢tives In setting objectives and planning for activities, the Trustees have given due considgration lo general guidance published by the Charity Cc￿mIssion relating lo publi¢ benefrt. including the guidance 'Publie benefit.. running a charity IPB2}'. The charity is regulated by ? Scheme of the Charlty C￿}missionerS {see "Conslilution" section on page 71, which provides for the net income, after payment of certain specified 8xpenses, to be applied by the Trustees for the benefit of the residents of the Almshouses or for r81ief in sickness or in need of persons resident in the area fomerly known as the City of Rochèster Ihereafter called 'lhe City"). A subsequent Charity Commission Scheme dated 23 August 2016 slates Ihat'lhg Citrf, includes those who are resident in poslcode areas ME1 and ME2. There have been no changes in the Charit￿$ objeclwes since the last annual report, b. Grant-maklng pollclos The Scheme states that the Chaiity can only accept applications for funding of projects and grants from within the ME1 and ME2 postcode a￿8$ and from those assisting persons resident in these poslcode areas. A¢hlevements and performanct a. Key performance indlcators The Trustees monitor the Charity's perfomance throughout the year. KPIS have been idenlffied for each of the Board Committees. The following KPIS are reviewed annualtr. House and Grants Achieve at least 95% occupancy of 8lm8house acCommodat￿n - resuk for 2023 was 96.5OA. Allocate and spend al least 90fjk of the Granl Funds - resurt for 2023 wa$ 91.790A. EststoslHealth & Safety Arrears level to be kept lo a minimum- seek speedy settlement of rents owed - aGhieve al least 95Vo of all rents due- result for 2023 was 85.62%. Achieve at least 95./0 occupancy of all commercial and resbJenli81 properties- result for 2023 was 98.729A. Flnancè & Investment In the context of the Annual 8udget. the Inwme, Expenditur& & the net oul-turn lo be + or_ 10Qh of projections- result for 2023 was-5.6% on expenditure and +6.64A) on income. Balance of unrestricted Income Funds to be at least 6 months, running ¢osts1500A budgeted expenditure for the yearl - result for 2023 was approximately 12 months. Investment Income lo be achieved within + or - 10Yo of the PIMFA IPersonal Investment Management and Financial Adviee As8ocialionl Income Yield- resum for 2023 out performed this al 32.50A. Rgmuneratlon & Stsffing Overtime costs lo b8 no rn0￿ thon 4% of the lolal wage bill- result for 2023 was 1.450￿. Staff sickness r8tes to be less than 5Yo - result for 2023 was 3.80/0. Trustee Commitment Meeting attendance- overall 85'h attendance pa- resutt for 2023 was 69%. Le$$ than 12.510 turnover {excluding scheduled relirement81- result for 2023 was 8.3¥o. Page 3 Richard Watts and the Clty of Rochester Almshouse Charitlgs Trustees. r¢port Icontinuedl for the year endod 31 December 2023 Achiev&ments and perfornianco (continu￿) b. RevS•w of adlvities The Charities, which have now been in operation in th8 ME1 and ME2 area of Medway in Kent for almost 450 years, continue lo thrive under the governance of a Board of mostly local Trustee5. The organisation's specific aims are sel out in what is known 8$ the 1977 Scheme whiGh L8 published in full on the Charty Commission website. The aims and objectives of the organisalion remain the same which are to help local people have a¢¢ess to affordabk houslng when they reach stste retirement age and that those in need in the local Communty a￿ supported either diwlly or indirectly through other organisalions. The organisation manages 67 Almshouses which ara on four drflerenl site5 in central Ro¢hesler. To qualify for the Almshouses appI￿an19 need to me81 the following crileri8 B8 resident in ME1 or ME2 or looking to move back to be closer to family. Be of stste pensionable age Be in good heatth and be able to INO independently. Have a low income and have savings below a sel amount. To not own their own property In addition, the organisation supports local pewle through the delivery of a number of differenl services for those most in need in ME1 and ME2. These inciude- Grants to organisations Grants to families and others in need Grants to local schools A Home Help serv The organisation is going through a mLTrJemisalion process and as such will bo rewewing its service delivery lo ensure it is still relevant and needed in the ILxo1 community. The Board discussed and agreed a new S year strategy during the year, whi¢h was close to finalisalion al year end. This year also Saw the appointment of a Deputy CEO lo lake a lead on all aspects of Estates Management including Health and Safety issues whKh has brought much needed Gapacty lo the staff team. Operatlonal Dglivery The operations for the organis8tion are deleg8led by the 8oard to the CEO and their team of staff which indLtde'. DeputyCEO Finance Manager Senior Warden Sile Manager Home Help Service Co(xdinalor Grants Administrator In addition, there are teams ofwarda)s, gardeners, home helps and domestic staff to ensure the srrmth running of all semces. Page 4 Rlchard Watts and the City of Rochester Almshouse Charltles Trustees. report leontinuedl tor the year endod 31 December 2023 Achievements and p•rformance (contInu￿) Overview The resutts for the year show a deficit on unrestricted funds before investment gains of £7,793 and 8 sury)lus on end¢)wmenl funds of £3,869 meaning that there is an overall deficit before investment gains amounting lo £3,924 {2022.. £47,725). Incoming resources increased frorn £1.279,976 in 2022 10 £1.416.871 in 2023. Inve$lmenl Income increased by £28,336 to £965,178 whilst income from charitable adivilies increased to £361,297. Total resources expended inGrea8ed from £1,327.70110 £1,420,795 in 2023. Al year end the charitys investments comprised investment propertie$ of £13,292,500 and listed investments of £7,310,513. Gains in the above investments tO9elher with the deficit for the year. resulied in a surplv$ of É190,802 to be added lo total funds brought forward. meaning the total nel ass8ls at 31 December 2023 were £25,401.950. Endowment funds lolalled £23,557,263 {2022 £23,379.1731. designated funds tolalled £635,279 12022 £674.7401 and general fvnds totalled £1,209,40812022- £1.157.2351. Funding ourwork The organisation is self-funding through investments. These investments lake a variety of fomis and range from sloeks and shaTes lo commercial pioperties. The investment income funds the services we deliver lo the bcal community and support the operations of the Almshouses, the Provision of which is heavily subS￿lsed by the organisalion. The 8tt8ched accounts provide detailed information about th& organisation's financ￿1 perfomiance. The Finance and Investrnenl Committee also look the decisK>n lo lake advantage of the high interest rale5 on offer and opened a deposit account with CCLA,. an investment management fim who offer deposit accounts a5 well as an investment management serviGe. c. Safeguarding Prioritising safeguarding is fundamental to the way the Charity operates. Whether it is how residents are treated by staff wlh daily checks on their wellbeing or looking after their long term best interests when they are facing illness, including dementia. or whether il is the attitude of Trustees and th8 d8cisions they lake when assessing grant applicant5 or even the way Sile staff doal with tenants al rental properties who are experiencing difficuf(ies, safeguarding and protecting people come first. Heahh and safety peTmeales every aspect of the organisalion. d. Investment policy and porformance The principal objective is to invest fund5 for capital growth whilst maintaining income levels SLrfficient to assist in meeting the expenditure of the Charty and the minimum level of Teserves. To assist in the objective, the Board of Tru$tees appoint$ advisers upon such temis as deemed appropriate to make recommendation$ as lo the sale andlor 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 growih orientated funds with a swrtch ba¢k to greater income producing funds should the need arise. The Trustee$ regularly review the inveslmenl retums and adual income and expenditure against budgets. Page 5 Rlchard Watts and the Clty of Rochester Alm¥hou5e Charltlos Tru$tges' report Icontinuodl for the year •nded 31 December 2023 Financlal r￿leW . Going concem After making appropriate enquiries, the Trustees have a reasonable expectation that the Chanty has adequate resou￿e$ to continue in operational exislence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoplion of the going concern basis can be found in the accounting policies. b. Reserves policy The 'reserves' of the Charity ara the resources that are available to spend on the Chartys purposes once all commitments have been met and planned expenditure covered. They do not include the Endowment or Designated Funds. The balance of Ihe reseThes is malntained in the Unrestricted Income Funds as adjusted for the sU￿u$ for the year after Ir8nsfers. Thè Charity has a commitment lo maintain ils properties in good repair, to apply the Charitvs incom for the benefil of the Almshouse r@s￿entS and to meet reasonable requests under grant making provisions. To ensure that those commitments may continue to bo mel should there be a temporary fall in Property andlor Investment Income andlor the need for unplanned expenditure, it is the Trusl¢es' policy that the balance of the Unrestricted Income Funds be maintained be￿en 6 months, and one yeaffs running c08ts. Such range 18 based on past experience and foNard financial projections over the next five year period. It is the responsibilty of the Finance and Inve$lmgnt Committee lo consider that range annually based on the updated five year projections and any agreed ￿e￿I0Pment plans and make any appropriate recommendations lo thg Board of Trustees. Al 31 December 2023 the general reserves amounted to £1.201,582 Isee note 201 which 15 slighdy bwer than one yearfs running costs. Endowmgnt Fund5 These eomprise the Pemanenl Endowments ofthe Charity. Designated Funds Cyclical Malntonance Fund Established under the Ch8rity Commissionerfs Scheme to provide for the ordinary maintenance of the Poor Traveller's House and the Almshouses belonging to the Charty. Extraordinary R•palrs Fund Established compulsorily under the Charity Commlssionerfs sche￿ to provida for the extraordinary repair, wnprovemfjnt or rebuilding ol the Poor Traveller's House and the Almshouses. General Repairs Fund E$￿Il$hed voluntsrily under the Charity Commissionerfs Scheme ID provide for the exiraordinary repair, mprov8ment or rebuilding of the property belonging to the charitiès other than the Almshouses. Planned Maintenance Fund Est&Jlished in 1985 in acGordance wrth provisions in the leases to provide for the maintenance. major repair and refurbishment works to certain properties in the High Street, Chatham. The fund compr¢ses leaseholders, service charge payments. Memorial Fund Est*)lished volunlarity in 2014, this fund comprises18gac￿s and in memoriam gifts to be applied to projects for the enjoyment of residents and stsff. Page 6 Rlchard Watts and the Clty of Rochester Almshouse Charities Trustees. rgport (continued} for the year ended 31 December 2023 Financial revièw Icontlnuedl Poor Travellers. House Fund This tund compiises donations received al the House which are applied to the a¢quisi(ion of small items for the House and garden. Apprenticoship Support Fund This fund comprises a grant received towards work with apprentiees. Structurni governance and management a. Constltutlon The Gharity was originally founded under the will of Richard Watts in 1579. It is regulated by a Scheme of the Chartty Commissioners dated 29 November 1977 when the Charrties of Richard Watts, Sir John Ha￿ard'S Almshouses and St. Catherine's Hospilal were grouped for adminl$lral￿n purposes. The Charity is linked wi(h the Sir John Hay4vard and Richard Watts Educational Charrties and th8 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 lo the City of Rochester includes those who are resident in poslcode areas ME1 and ME2. Finally. in January 2018, the Charty Commission agreed that those people who wished to retum lo Rochester lo b8 close to their friends and family in their old age, but who al the time of applying do not th&mselves live within ME1 or ME2, could be considered. b. Methods of appolntment or election of Trustees The management of the Charity Is the responsibilrty of the Trustees who are elected and ci>opled under the ternis of the Charty Commission Scheme. c. Oryanlsational structure and d•¢i$ionamaking poli¢ies The oryanisatw)n had undertaken a govern?nce review in 2019 As a result it reduced the number of meetings Trustees attended each year alihough the Comrnittee areas of authority remained the same. The Commrttees which report into the Tru81ee Board a￿.. Estates Finance and Investment House and Grants Remuneration and Staffing The full list of Trustees is below. Trustees- 2023 Linda Reay- Chair and Vice Chair of Remun@ration and Stsffing Robin Michael Bailey- Chair of Estates Peter James Smith- Vice Chair and Chair of Finance arKI Investment Alex Cl8rabul- Vice Chair of Estates Catherine Mary Gore- Chair of House and Grants Elizabeth Janz- Vice Chair of House and Grants Colin McCarthy- Chair of Remuneration and Staffing Kamaldeep Tesse Barrie James Feyrtrell Keith Povey- Vice Chair of Fin$nce and Inv8slment Shirtey Gurteen Tim Newrnan - (appointed 22 June 20231 Pa9e 7 Rlchard Watts and the Ctty of Rochester Almshouse Charities Trusteg$' rèport Icontinuodl for the year ended 31 December 2023 Structure. governance and managoment Icontinuedl Trustees- Change5 Catherine Gore- (resigned 14 December 2023) Barrie FewtTell- (resigned 25 January 20241 Michad Robin Bailey- Chair of Estates (Passed away 29 Juty 20231 The Trustee Board would like lo acknowledge Michael's contribution lo the govemance of the organisation over his thirty years of service to the Charities. The Charities also undertook form81 Trustee Recruitment for the first time through a speclalist recruitment 8g8ncy wlh three Trustees being invited lo the join the board on a probationary basis in December 2023 following the succe88ful recruitrnenl campaign. Each Committee focu55es on a specific a￿a of operation for the organisation and advises both the Board and the CEO regarding both major ope¥ational and str81egic decisions. The organisation also contracts a number of professional 8dvisoTS lo provide expert and relevanl advice regarding operations and strategy. d. Policies adopt•d for Ihe inductlon and training of Trustees l Trustees are encouraged lo attend training courses and seminars on a regular basi$. All TtU8te&s have Trustee Handbooks that they keep up to dale with all relevant policies, accounts and other background information about the Charity. e. Related party relalionships Trustee$ regularfy 'de¢l8re #n interest. as appropriate and al have ¢ompleled Ihg queslionnaire. f. Rlsk managèmont The Charitys Trustees have given consideration to the major risks lo which the Charity is exposed and satisfied themsefves that systems or procedures are established in order lo 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 wth the Charity. The risks fall into the following categories.. Govemance- from problems recruiting Trustees to adherence lo the Scheme Operations- from computer systems failure to personal safety Finances- from shortfa115 in income lo insurance cover External factors- from adverse publicty to impact of local government policies Compliance with law and regulation- from Data Protection lo Heatth & Safety and building compliance In addition to the above. ¢Jther issues of Compliance, Risk and Assurance were highlighted and addressed during the year through a dedicated project group including Trustee$, Exlernal Consultants and Staff. Amongst other outcomes, it helped lo identify and establish the following A new IT infra structure based on Office 365 An e-learning platform lo address the mandatory training needs of all staff and trustees. HR Consultancy Support and Adwce Health and Safety Consultancy The opportunty for Organisational wide Complkqnce improvements Page 8 Rlchard Watts and the Clty of Rochester Alm$house Charities Trust¢e$' rgport Iconlinued} for the year end8d 31 December 2023 Plans for future yriods The organisalion ha5 Started an incorporation process with the support of Furley Page LLP, a law fim specialising in supporting eharities through this process. This could have a major impad on the govemance structure for the organisation in the coming years and will form part of the S year strategy review. This will be the focus for the ￿rning year, albeit there is no indication of a date that 5ncorporation could happen al this cvrrenl moment. statement of Trustees. re$ponsibiliti95 Thè Trustees are responsible for preparing the Trustees. report and the financial slalements in ac¢ordan¢e with applicable law and Untted Kingdom Accounting Standards Ivniled Kingdom Generalty A￿epted A¢counling PraGlicèl. The law applicable to ¢harfties in England & Wal0$ requires the Trustees lo prepare financkgl stslemenls for each financial yèar which give a true and fair Mew of the slate of affairs of the Charrty and of ils incoming resou￿S and application of rosources, including rts income and expenditure. for that period. In preparing Iheso financial stslements, the Trustees are required to: select suitable accounting polieles and then app￿ them consislently-, obsetve the methods and principles of the Charities SORP IFRS 1021.. make judgements and accounting estimates that are reasonable and prudent", slate whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material departures di$d05ed and explained in the financial statements.. prepare the financial statements on the going Concern basis unless il is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping aequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any ts'me the financial pcisilion of the Charty and enable them to ensure that the financial statements comply wth the Charities Act 2011. the Ch8rity {Accounls and R8POrtsl 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 $lep$ for the prevention and detection of fiaud and other irregularf(ies. Auditor The auditors. Kreslon Reeves LLP, have indicated their willingness lo continue in office. The de5ign8led Trustees will propose a motion reappointing the auditors at a meeting of the Tnjslees. Approved rder of the memberg of the board of Trustees and signed on Ihgif behalf by.. Kelt Chair Po Date.. 29 October 2024 Page 9 Richard Watts and the City of Rochester Almshouse Charfties Independenl audltorfs report to the Trustees of Richard Watts and thè Clty of Rochest•r Almshouso Charities Opinion We have audited the financial slalements of Richard Walts and the Cty of Rochester Almshouse Charities Ilhe 'charilYI for the year ended 31 December 2023 which comprise the Stslement of financi81 activities, the Balance sheet the Slalemenl 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 Genèrally Accepted Accounting Practice). The financial statements hove been prepared in accordance wth Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporti1￿ Standards applicable in the UK and Republi¢ of Ireland IFRS 1021 in preference to thè Accounting and Reporting by Charities.. Statement cf Recommended Practice issued on 1 April 2005 which is referred lo in the extant regulations but has been withdrawn. This has been done in ordef for the accounts lo Prn￿e a true gnd fair view in a¢cordanGe with the Gen8ralty Accepted A¢¢ounling Practice effeclrve for reporting periods beginning gn or aftei 1 January 2015. In our opinion the financial statemonls: 9ive a true and fair vrèw of the slate of the charity8 affairs as al 31 December 2023 and of ils incoming resources and application of resouKes for the year then ended., have been properly prepared in accordan￿ United Kingdom Generalty Accepted Acc¢￿ntIng Practice- and have been prepared in accordance wtth the requirements of the Charities Act 2011. Basls for oplnion We Conducted our audrt in a¢￿[dance with International Standard$ on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those st8ndards are further described in the Auditorfs responsibilities for the audrt of the financial statements section of our report. W8 are independent of the charity in accordance with the elhical requirements that are relevant to our audit of the financial statements in the Unf(ed Kingdom, in¢ludiro the Financial Reporting Council's Ethical StandaTd, and we have futfilled our other ethical responsibilrties 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 Tru51ees' use of the going concern basis of accounting in the preparation of Ihe financial slalements is appropriate. Based on the work we have perfomed, we have not idenlifpd any material uncertainties relating lo events or conditions that, individually or collectively, may Cast signfficanl doubl on the charit¥s abilty lo Continue as a going concern fu a pèriod of al least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the re5ponsibililie$ of the Trustees with respect to going con¢em are de￿be￿ in tho relevant sections of this report. Page 10 Richard Watt5 and the Clty of Rochestgr Almshouse Charitie5 Independent audltor's report to tho Trustees of RiGhard Watts and the City of Rochestsr Almshou8 Charltles l¢ontinuedl Other Infomiation The other information comprises the information in¢luded in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsib￿ lor the other information contained within the Annual report. Our opinion on the financial statements does not eover the other infomalion and, except lo the extent otheThvi$e explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and. in doing so, consider whelher the other infomiation is materially inconsistent wth the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we idenlfy such material inconsistencies or apparent material misstatements. we are required lo detemine whether this gives rise to a material misslalemenl in the financial statements Ihemselv8s. If, based on the work we have performed, we conclude Ihat there is a material misstatement of this other information. we are required lo report that fact. We have nothing to report in this regard. Matters on whlch we are required to report ty except5on We have nothing to report in resped of the following matters in relation to which the Charrties (Accounts and Reports} Regulations 2008 requires us to report lo you if, in our opinion.. the information given in the Trustees. report inwnsislent in any material fe8pect wtth the financial 51atemenls', or sufficient accounting records hav& not been kepl., or the financial statements are not in agreement with the accounting records., or we have not received all the infomialion and explanations we require for our audit. Responslbllities of truste As gxplained more fully in the Trustees, responsibilities ststemenl, sel out on page 10, the Trustees are responsible for the preparation of financial statements which give a Inje and fair view. and for such inlemal control as the Trustees determine is necessary lo enablg th8 preparalron of financial statements that are free from material misslalement, whether due lo fraud or erfor. In preparing the financial statements. the Truslees are responsible for ossessing the charity's abilty to continue as a going concern. disclosing, as applicable, matters related lo going con¢ern and using the going COn￿M basis of accounting unless the Trustees erther intend to liquvjate the charity or to cease operations. or have no realistic allern21ive bul to do so. Page11 Rlchaid Watts and the Clty of Rochester Almshouse Charitles Independent auditorfs réport to thg Trustees of Richard Watts and the City of Rochestsr Almshousè Charillgs leontlnuedl Auditorfs rgsponsibilitles for the audit of the flnanclal statements We have been appointed as aud((or under section 144 of the Charities Act 2011 and report in accordance with the Ad and relevant regulations made or having effect thereunder. Our objectlV8s are to obtain reasonable assurance about whether tho financial statements as a whole are free from material misslalernenl, whether due to fraud or error, and lo issue an Auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran￿. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always dgled a materi81 misslatemenl when il exists. Misslatemenls can arise from fraud or error and are ¢onsidered material if, individually or in the aggregate, thèy could reasonably be expeded lo infiuence the economic decisions of users taken on the basis of these fina￿la1 51atemonls. Irregularities. including fraud. are instances of non-compliance wth laws and regulatiws. We design procedures in line wrth our responsibilities, outlined above, lo delgcl material misslalemenls in respect of irregularib'es, including fraud. The ext8nt lo which our procedures are capable of detecling irregularities. including fraud is del8ited bglow.. Capabilty of the audit in detecting irregular(ties, including fraud The objectives of our aud(( are to Klentify and assess the risks of material mi8Statement of the financial statements due to fraud or error., lo obtain sufficient appropriate audit èvidence regarding the assessed risk$ of material misstatement dve lo fraud or error, ané to respond appropriately lo those risks. Based on our understanding of the charity and the charitable sector generalty. and thrO￿h diseussion with the Iruslees and other management las required by audrting standards), we identffjed that the principal risks of non- compliance with laws and regulations related lo heahh and safely, GDPR and eMplO￿ent law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and reguLglions that have a direct impaGI on the prgparalion of the financial slalements such as the Charity SORP 2019 ansj other charity legislatK)n. We communicated identified laws and regulations throughout our team an(1 remained alert to any indications of non-complian￿ throughout the audit. We evaluated Trusloes, and management's incentives and opportunities for fraudulent manipulation of the financlal slalemenls (including the rtsk of override of controls) and determined that the principal risks related to fraudulenlty or erroneousty amending income and eMpendf(ure levels. Audit prwedures performed by the engagem8nl team included". Discussions with management and Trustees and assessment of known OT suspected instances of non- compliance wrth laws and regulations (including health and safety) and fraud," and Assessment of identified fraud risk factors.. and Performing analytical procedures lo identify any unusual or unexpected relationships, including related party transactions. that may indicate risks of material misslalement due lo fraud,. and Idenlityng and testing journal entries, in particular any manual entries made al thè year end for financial statement preparation,. and Conducting intetviews with appropriate personnel to gain further insight into Ihe wilrol systems mplemenled, and the risk of irregularity., and Challenging assumpligns and judgements made by management in its significant accounting eslimales.. and Confirmation of related parties with management, and review of transact￿nS throughout the period lo identify any premously undisclosed transactions with related parties outside the norn￿1 course of business., and Reading minutes of meetings of those charged with governance." and Physical inspection of tangible assets susceptible lo fraud or irregularity, and Review of significant and unusual transactions and evaluation of the undertying financial r*ionale supporting the transaclions. Page 12 Richlrd Watts and the City of Rochester Almshouse Charitie¥ Independent audltorfs report to the Trustees of Rlchard Watts and the City of Rochgster Almshouse Charttles {continuedl Because of the inherent limitations of an audit, there is a risk that we TrMII not detect all irregularilies, including those leajing to a material missl8lement in the financial statements or non-compliall￿ with regulation. This risk Increases the more that compliance with a law 01 regulation is removed from the events and transactions Tefflecled in the financial stalemenls, as we wll bg less likely lo bewme aware of instancès of non-compliancg, The risk is also greater regarding irregularities o¢cvrring due to fraud rather than 8mr, as fraud involves Intentic￿81 conceaknent, forgery. collusion, omission or misrepresentation. As part of an audit in accordance with ISAS {UK), we exercise professional judgement and maintain professional epticism throughout the audit. We also.. Identify and assess the risks of material misstatement of the financial slatem8nls, whether du8 to fraud or error, design and perfomi audit procedures responsive lo those risks. and obtain audit avidence 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 erior, as fraud may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of intemal control. Obtain an understanding of intemal control relevant to the audit in order lo design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charills inlerrtal control. Evaluate the appropriateness of accounling policies used and the reasonableness of acGounting estimates and related dis¢losures made by the Trustèes. Condude on the appropriateness of the Trustees. use of the going wneem basis ol accounting and, based on the audit evidence obtained, whether a malertal uncertainty e￿SIS re181ed 19 events or condiiions that may cast signifi¢anl doubl on the charty's ability to continue as a going concem. If we conclude that material uncertainty exists, we are required lo draw attention in our Auditorfs report to the related disclosures in the financial slalemenls or, if such disclosure5 are inadgqlsate, lo modity our opinion. Our conclusions are based on the audit evidence obtained up lo the dale gf our Auditor's report. However, future events or conditions may cause the charity to cease to continue as a going con¢ern. Evaluate the overall presentation, structure and conlenl of the financial slalemenls. including the disclosure5. and whether the financial slalements represent the undertying transadions and events in a manner that 8th￿Ve$ fair presentation. We cornmunicate with those charged with govemance ￿garding, among other matters. the planned scope and timing of the audit and signifiGanl audrt findings. including any significant deficiencies in intemal control that v identify during our audf(. Use of our report This report is mad8 solety to the charitys trustees. as a body. in accordance with Part 4 of the Charities IAccounls and Reports) Regulations 2008. Our audf( work has bèen undertaken so that we might state to the charitys Iruslees those malleis we are required to stale lo thèm in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and rts trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Il,,k LLe4 LL Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham Maritime Date.. 30 October 2024 KTe$ton Reeves LLP are eligible to act as auditors in tems of section 1212 of the Companies Act 20C6. Page 13 Richard Watts and the City of Rochester Almshouse Charltles Slalement of 1Snancial activitie$ for the year •nd•d 31 December 2023 Unrestricted Endowment funds lunds 2023 2023 Totsl funds 2023 Totsl funds 2022 Notè In¢ome and endowmonts trom: Donations and legacies Charitable activf(ies Investments Other income 396 361,297 965,178 90.000 26.510 316,624 936,842 361,297 951,449 90,000 13,729 Total Income and endowments 1,403.142 13.729 1,416,871 1,279,976 Expenditure on: Raising funds Charttsble activities 298.345 1.112.590 298,345 1.122NS0 271,059 1,056,642 11 9.860 Total expgnditure 1,410.935 9.860 1,420.795 1,327,701 Net lexpendlturelllncome befor8 net gainslllossesl on investments Nel gainslllossesl on investments 17.7931 20.506 3.869 174,221 13.9241 194,726 147,7251 11,175,942) Not movèmenl In funds 12,712 178.090 190,802 11.223,6671 Roconclliatlon of funds: Total funds brought forwar Nel rrThiemenl in funds 1,831.975 12,712 23,379.173 178,090 25.211.148 190.802 26,434,815 11.223,6671 Total funds carrlgd forward 1.844,687 23.S57,263 25A01,950 25,211,148 The Statement of financial a¢tivilie$ includes all gains and losses recoynised In the year. The r￿teS on pages 17 to 37 form part of these financial statement$. Page 14 RichaTd INatts and the Clty of Rochester Almshouse Charities Balance sheet as at 31 December 2023 2023 2022 Note Fixed assets Tangible assets Investments Investment property 14 16 3,476,123 7,310.513 13,292,500 3.476,123 7,511,827 13,558,500 24,079,136 24,546.450 Curr•nt as$•ts Debtors Cash al bank and in hand 17 310.952 1.334.895 267.493 678,131 24 1.645.847 945,624 Crediiors.. amounts falling due within one year 18 1292,802 1263,815) Net ¢uffgnt assot$ 1.353,045 681,809 Creditors." amounts falling due after more than one year 19 130.2311 117.1111 Net assets 25A01.950 25.211,148 Charity funds Erbdowment funds Unreslricled funds 20 20 23,557,263 1,844,687 23,379,173 1.831,975 Total funds 25,401.950 25,211,148 The financial statements were approved and authorised for Issue by the Trustees and SIg￿d on their behalf by. Kei Chair ey Date.. 29 October 2024 The notes on pages 17 10 37 fomi part of these finanGial slalement5. Page 15 Richard Watts and the Ctty of Rochester Almshouse Charitie5 Statement of cash flows for th8 year ended 31 December 2023 2023 2022 Cash flows from op9ratlng actl¥ltigs Net cash used In operating adiv((les 23 11.060,4541 11,176,900) Cash floY+S from Inve5tin9 activltles Dividends, interests and rent8 from investments Proceeds from sale of investments Purchase of investments Pfoceeds from sal& of investment property Purthase of investment property 96S,178 693.242 1297.2021 361.000 Is,000} 936,842 405,202 1209,6741 Net cash provided by Inve$ling activltles 1.717.218 1.132.370 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 656,764 678.131 {44,5301 722,661 Cash and cash 8qulvalents at the end of the year 24 1,334.895 678,131 Th& nol85 on pages 17 lo 37 form part ol these financial slalemenls Page 16 Rlchard Watts and the City of Rochestgr Almshouse Charities Notes to the financial statements for th8 yaar ended 31 Docember 2023 General Infomjation Richard Walls and the City of Rochester Almshousè Ch8r((ies is a charty registered in England. The Charitys registered address is Administrative Offices, Watts Almshouses, Maidstone Road, Rochester, Kent ME1 1SE. Accounting pollcigs 2.1 Basis of preparation of fSnanGi•l statem*nts The financial slalements have been prepared in accordance wrth the Chairties SORP IFRS 102) Accounting and Reporting by Charities.. Ststement of Reconwnended Pra￿￿9 ?pplicable lo charit￿$ prèparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The financial statements have been prepared lo give a Irue and fair, view and have departed from the Charf(ies (Accounts and Reports) Règulations 2008 only lo the extent required to provid8 a 'lrue and fairf view. This departure has invo￿ed foll¢)Y4ing the Charities SORP IFRS 1021 published in October 2019 rather than the Accounting and Reporting by Char(iies'. Statement of Recommènded Pracli¢o effective from 1 April 2005 which has Since been withdrawn. Richard Watts and the City of Rochester Almshouse Charities meels the definrtbon of a public benefrt enlily under FRS 102. Assets and liabilities are initially recognised al historical cost or transactv)n value Un￿$8 otherwise slated in the relev8nt accounting policy. 2.2 Golng concern The Trustees assess whether the use of going concem is approprbate, i.e., whether there are any material uncertainties related lo events or conditions that may cast significant doubt on the abilty of the Charty lo continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the dale of aulhorisalion for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable fLJture and there are no material uncertainties about the Charit￿$ abilrty lo Continue as a going concern, thus they continue lo adopt the going contem basis of accounting In preparing the financial statements. 2.3 Incomo All income Is recognised once the Charity has &ntitlement to th& incorne. it is probable that the income will be rèceived and the amount of ineeme receivable can be measured reliabty. The recognition of income from legacies is dependent on establishing entitlement, the probabilty ol rec8ipt and the abilty to estimate with sufficient accuracy the amount receivable. Evidence of entitlement lo a legacy exists when the Charity has Sufficient evidenc8 thal a gift has been left lo them Ilhrough knowledge of the existence of a valid will and the death of the benefactor) and the executor is $alisfied that the propety in question will not be required lo satisfy claims in thè estate. Receipt of a legacy must be recognised when f( is probable Ihol il will be received and the lair value of the amount receivable, which will generally be the expected cash amount lo be dislribijled lo the Charrty, can be reliabty measured. Income lax Tecoverable in relation to investment income is recognised at the lime the investment income is receivable. other income is recognised in the period in which il Is Teceivabl& and to the extent the gocxls have been provided or on ¢omplelion of the service. Paye 17 Rlchard Watts and the Clty of Rochester Almshouse Chariti Notes to the tSnancial statoments for the year endgd 31 December 2023 A￿ount1ng policie5 Icontlnueqll 2.4 Expenditure Expenditure is recognised once therè is a legal or eonstructive obligation to transfer economic benefit to a third paty, il is probable that a transfer of economic benefi'ts will be iequired in settlement and the amount of the oblig81ion can be measured reliabty- Expenditure on raising funds includes all expenditure in¢urred by the Charity lo raise funds for ils charitable purposes and includes costs of all fundraising activities events and non-charitsble trading. Expenditure on charitable 8Ctivicies 1$ incurred on directty undertaking the activities which further the Chartys obieclives, as well as any associated 6UPPOrt costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants b&ing recognised as expendi(ure when the eondilions attaching are fulfilled. Grants offered subject lo Conditions which have not been mel al the year end are noted as a commitment. bul not accrued as expenditure. All expenditure is inclusive of irr¢coverable VAT. 2.5 Invgstm•nts Fixed asset investments are a form of financial Instwment and are in￿al￿ recognised al their transaction cost and subsequently measured al fair value al the Balance sheet date, unless the value nnot be measured reliably in which case it is measured at cost less impaiment. Inve5trnent gain$ 8nd losses, whether realised or vnrealised, are combined and Presented as 'Net GainsllLosses} on investments, in the Statement of financial activiiies. 2.6 Deblors Trade and other debtors are recognised al the settlem8nt amount after any trade diswunt offered. Prepayments are valued at the amount prepaid nel of any trade di￿OUnt$ due. 2.7 Cash at bank and In hand Cash al bank and in hand includes cash and short-term high￿ liquid investments wf(h a short maturity of thiee months or less from the date of acquisition or opening of the deposf( or similar accounl. 2.8 Liab111ti9s and provisions LiabiSrties are recognised when there is an obligation al the Balance sheet dale as a resu￿ of a past event, il is probable that a transfer of economic benelf( will be requirèd in settlement, and the amount of the settlement can be estimated reliabty- Liabil<(ies are recognised at the amount that the Charity anticipates it wil pay to settle the debt or the amount it has receNed as advanced pay7nenls for the goods or services it must provide. Provisions are measured al the best e51imale of the amounts required lo 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, di5counle¢J at the pre-tax discount rale that reflect5 the risks specific lo the liability. The unwinding of the discount 18 recognised in the Statement of financial aclivilKgs as a finance cost. Page 18 Richard Watts and the Clty of Rochester Almshouse Charities Notos to the flnancial statements for the year ended 31 December 2023 Accounting policies (continued 2.9 Financial instruments The Charity only has financial assets and finan¢ial liabilities of a kind that qualify as basic financial instruments. Basic financial instnJmenls are initialty re¢ognised al transaction value and SLfbsequenlly measured al their settlement value witti the exception of bank loans which are subsequenuy measured at amort15ed cost using the effe¢liv8 interest method. 2.10 Penslons The Charty operates a defined contribution pension Scheme and the pension charge represent5 the amounts payable by the Charity lo the fijnd in respect of the year. 2.11 Fund accounting General funds are unrestricted fijnds which are available for use at the discretion of the Trustees In furtheran￿ of the ganeral objedives ol the Charity and which have not been designated for other purposes. Designated funds comprise vnreslrieted funds that have been sel a$itJe by the Trustees for particular purposes. The aim at)d use of each designated fund is set out in the Trustees, Report. Endowment funds comprise the pemanent endowments of the Ch8rty. 2.12 Freghold propertias - Almshouses Freehold properties are included at ValUat￿n as at 1 January 1973 or 31 De¢ember 1977 or al sub8equent cost as detai￿d in note 14 to the financial ststements. Freehold properties are not depreciated. In no case is the eslimaled useful life of the building les$ than frfty years and the 8Stim81ed residual value is likely lo be more than the amount al which the properties are Ca￿led in the balance sheet. Any depreciation would, therefore, be immaterial and no provision has been made in the financial stateffents. 2.13 Invostment propertles Investment properties are long-lem assets, which generate income. They are included at market value in accordance with the Statement of Recommended Practice on a￿OUNting by charities. Please see note 15 to the financial statements. 2.14 Furnlture and •qulpment The cost of fumrture and equipment has been charged to the Statement of Financial Activrties on a￿Ul8￿(lOn. Page 19 Richard Watts and the Clty of Rochester Almshouse Charities Notes to the financlal statements for the year endgd 31 Decembor 2023 Crltlcal accounting estimates and areas of judgement Eslim*es and judgements are continually evaluated and are based on historical experience and other factors. including expectations of futu￿ events that are believed to be reasonable under the circumstances. Criti'cal accounting estiTnales and assumptions.. The Charty makes estimates and assumptions conceming the future. The r￿UMing accounting estimates and assumptions will, by definf(ion, seldom equal the related actual results. The estimates and assumptions that have a significant risk of Causing a material adjustmènt to the fjarf￿ng amounts of assets and liabilil'es Wbthin th& nexi financial year are diseussed below. Crrti¢al areas of judgement.. Investment propertlès al Mark9t valu• The Charity holds inv8slment propety wrth fair value of £13.292,500 at the year end (see note 151. In Ofder to determine the fair value of investment property the Charity has engaged independent valuation speciali$ls with experience in the location orbd nature of the property being valued. They have used a valuation technique based on comparable market dats. Th8 deternined fair value of the investment property is most sensitive to fluclualions in the property market. Tanglblg flxed ass•ts- Cost model The Charity has recognised tangible fixed assets with a carrying value of £3,476,123 al the Teporting dale (see note 141. These assets are staled al their cost less provision for dèpreciation and impairment. The Charitys accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For rnalelial assets such as land and buildings the Charity determines at acquisition reliable estimates for the useful lrfe of the asset. its res￿￿81 value and decommissioning costs. These estimates are based upon such factors such as the expected use of the acquired asset and market conditions. Al subsequent reporting dales the Trustees Consider whether there are any factors such as technological advancements or chang8s in market conditions that ind￿ale a need lo reconsider the estimates used. Where there are indicators that the carrying value of tsngible assets may be impaired the Charty undertakes tests lo determine the recoverable amount of assets. These lesls 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 obsetvable market prices less in¢remental Cost for cSisposing of the asset. The value in use calculation is based upon a diseounted cash flow model. based upon the Charitls forecasts for the foreseeable future which do not include any restnjcturing actiwlies that the Charity is not yel commilled to or signrficanl future inveslmants that will enhance the asset's performance. The recoverable amount i¥ most sensitive lo the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rale used for extrapolation purposes. Page 20 Richard Watts and the Clty of Rochester Almshouse Charitie¥ Notes to the financial ststem&nts lor the year endod 31 December 2023 Income from donations and 18gacies Unrestrlcted funds 2023 Totsl funds 2023 Total funds 2022 Donations 396 396 26,510 Total 2022 26,510 26,510 InGome from charltable activiti•s Unrestricted funds 2023 Total funds 2023 Totsl funds 2022 Resid8nt$' maintenance contributions Home Help income Other income 330.562 30,735 330.562 30.735 284,808 25,066 6.750 361,297 361.297 316.624 Total 2022 318,624 316,624 Page 21 Richard Watts and the City of R￿h¢Ster Almshouse Charitles Notes to the financial statgments for the year ended 31 DocèmbeT 2023 Investmenl in¢ome Unrestrlcted Endowment funds funds 2023 2023 Total funds 2023 Total funds 2022 Rents receivable SeNice Charges receivable Income from listed investments Insurances re¢overable 680,132 16,283 242,668 12,36S 680,132 16.283 256,397 12,366 688,W3 10,461 228,426 9,952 13.729 951,449 13.729 965,178 936,842 Total 2022 924,896 11,946 936.842 Other In¢omlng resources Unrestricted funds 2023 Total funds 2023 Totsl fijnds 2022 Profil on disposal of investment property 90,000 90.01)0 Page 22 Richard Watts and the City of Ro¢hgStgr Almshouse Charities Notes to the financial statements for the year ended 31 December 2023 Property expenditure Costs of raislng voluntary income Unrostrieted funds 2023 Total fund5 2023 Totsl funds 2022 Commercial property repalrs and maintenance Residential property repairs and maintenance Voids expenditure Rent payable 42,702 120,448 {16.6631 1.471 42,702 120,448 {16,663} 1,471 42.418 73,264 27,261 1,471 F lil Insurances Land and estate agents Solicitors Surveyors Bad debts Sundry &xpenses H&S Consultancy HR Advisors 25,2SO 20.178 57,991 26.756 {14,627) 12,$40 3,687 4,170 25,250 20.178 57.991 26,756 {14,6271 12.540 3.687 4,170 18,386 22,397 13,413 29,341 16,828 43 998 283,903 283.903 245,820 Total 2022 245,820 245.820 Page 23 Richard Watts and the Clty of Rochester Almshouse Charities Noles lo the financlal statements for the year ended 31 DgCgmb8r 2023 Investment managerngnt costs Unrestrlcted funds 2023 Total funds 2023 Total fund5 2022 Stockbrokerfs fees 14,442 14.442 25,239 Total 2022 25.239 25.239 10. Analysis of grants Grants to Grants to Institutlons Individuals 2023 2023 Total funds 2023 Totsl funds 2022 Grants payable 75.301 6,118 81.419 67,638 Totsl 2022 60,417 7.221 67,638 Page 24 Richard Watts and the City of Rochester Almshouse Charities Notes to thg finanelal stataments forthe year ended 31 December 2023 11. Analysls of oxpendilurn by actlvltl8S Grants payablg {not8 101 2023 Support Total funds 2023 Totsl funds 2022 Dlrect costs 2023 2023 AlmSh￿J9e 576,067 26.51 S 40.827 15.173 81,419 382,449 1.039.936 26.515 40,827 15.173 970.590 27,915 32,353 25,784 Outpensions Home Help Poor Travellerfs Hou8e 658,582 81,419 382,449 1,122,450 1,056,642 Total 2022 681,041 67,638 307,9S3 1.056,642 Anatysi$ of dlrect costs Poor Travellerf$ House 2023 Out- pensSons Home Holp 2023 2023 Total funds 2023 Total funds 2022 Almshouse 2023 Staff costs General and water rates 222,297 40,319 2.945 265,561 288,530 14,412 22,037 2.475 1,793 16,887 23,830 14,817 17,671 Insuran￿$ Oil, ga$ and eleclri¢ity Repairs, maintenan and cleanlng Garden upkeep Telephone Sundry expenses OLtlpensions Health and safety 71,893 2,271 74.164 66,470 179,942 6,852 4,293 12,777 2.757 182,699 6,852 4.903 15.607 26.515 41.564 190,750 11,157 2,525 14,781 27,915 46,425 610 2.322 508 26,515 41,564 576.067 26,515 40,827 15,173 658.582 681,041 Total 2022 $94.989 27,915 32,353 25,784 681,041 Page 25 Richard Watts and the Clty of Rochester Almshouse Charities Not￿ to the financial statements for the year ended 31 Decgmbpr 2023 11. Anaty$i$ of expendlture by activitigs <¢ontlnued) Analysis of support costs Total lunds 2023 Tolèl funds 2022 Staff costs Printing, 5181ionery and a 31.095 1146.3311 1,157,234 Total Unrestrlded funds 2,037,369 1,268.030 11,317.8411 13.3161 1152,2671 1,831,975 Page 33 Richard Watt5 and the Clty ol Rochester Almshouse Chariti95 Not8$ to the linancial $tatements for the year endod 31 Decembgr 2023 Statsment of funds Icontinuod} Endowment funds Richard Watts Chatham Intra Sir John Hayward's Charil&le Fund St Catherine's Hospital Sir John Hayward's Educational Charity William Mantle TTUSI 22.852,eA1 1.626 1996,734} 21,855.907 IS1) 1.575 594,147 11971 593,950 652.184 15.3271 646,857 29,747 635 12001 51 14.4331 25.8C 267,101 11,311 19,660} 3.265 {16.9331 255,084 24,397.446 11.946 19,860} 3,316 11.023,67SI 23,379,173 Total of funds 26,434,815 1,279,976 11,327,701> 11.175,942} 25,211.148 Page 34 Rlchard Watts and the Clty of Rochester Almshouse Charities Notes to the financial statemonts for the year ended 31 Decembgr 2023 21. Summary of funds Summary of funds • Current year Balance at 31 Gainsl December (Loss￿) 2023 Balancg at 1 January 2023 Transfers Inlout In¢ome Expenditur8 Designated funds General funds Endowment funds 674.740 1,157.235 30,797 1,372,345 {132,2501 11.278.685) 78,160 {78,1601 {16,1681 36,673 635.279 1.209A08 23.379.173 13.729 19.8601 174,221 23,557,263 25,211,148 1,416.871 11 A20.7951 194.726 25,401.950 Summary of funds - prlor year Balance at 31 December 2022 Balance al 1 January 2022 Transfers inlout Gainsl (Losses) Incomg Expenditur8 Designated funds General fvnds End¢)wment funds 713,763 1,323.606 19,373 1,248,657 118,048} 11,299,793} 134,411} 31,095 15,936) (146,331) 674,741 1.157,234 24,397,446 11.946 (9,8601 3,316 11,023.675) 23,379,173 26,434.815 1,279,976 11,327,701} {1,175.9421 25.211,148 22. Analys￿ of net assot$ between funds Analysis of net assets belween funds- current year Unrestrlctèd Endowment funds funds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Investment property Current as$els Creditors due wrthir* one year Credtiors due in more than one year 3,476,123 3A76.123 6.297,581 7.310.513 13.292,500 13,292.500 491,059 1,645.847 {292.802) {30,231) 1.012.932 1,154,788 1292,8021 130.2311 Totsl 1.844,687 23.557,263 25,401.950 Page 35 Richard Watts and the Clty of Rochester Almshouse Charities Notgs to the flnancial statements for the year ended 31 Decembgr 2023 22. Analysis of net assets between funds (contlnuedl Analy$is of net assets between funds - prior y•ar Unrestricted Endowment funds fund5 2022 2022 Totsl funds 2022 Tangible fixed assets Fixed asset investments Investment propety Current assets Creditors due within one y Creditors due in more than one year 3,476,123 3,476,123 6,289,892 7,511,827 13.558,500 13.558,500 54,658 945,624 (263,815) 117,111) 1.221.935 890.966 {263,8151 117.1111 Total 1,831,975 23,379,173 25.211,148 23. RKon¢lllatlon of net movèment in funds to net cash flow from operatlng activities 2023 2022 Net incomelexpendllure fo¥ the year las per Stalament of Financial Aclivitiesl 190,802 11.223,6671 Adjustments for: Gainslllosses) on investments Dividends, interest and rents from investments Increase in debtors Increaselldecrease} in creditors Profil on disposal of investment propety {194.7261 1,175,942 {965.1781 1936,8421 {43,4591 188,1711 42,107 1106,162} {90.0001 Net cash used in operating activities 11,060.4541 11,176,9001 Analy$l$ of cash and cash equivalents 2023 2022 Cash in hand 1.334,895 678,131 Paye 36 Richard Watts and the Clty of RochKtor Almshou$e Charltles NotOS to the financial statements for the year ended 31 D9cember 2023 25. Analysis of Changgs in net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand 678.131 656.764 1.334.895 Op•ratlng lease commitmenls At 31 December 2023 the Charity had commitments to makè future minimum lease payTrents under non- cancellable operating leases as follows.. 2023 2022 Not later than 1 year Later Iban 1 year and not tater than 5 years 976 732 976 1,708 1,708 2,684 27. Related party transactlons During the y&ar the Charity paid a grant of £100 12022 - £1 DOI to Rochester Grammar School for Girls Charity, of which Mr M Bailey was also a Injslee. There were no amounts outstsnding at the balance sheet dale12022 £Nill. During the year the Charty paid grants lolalling £9.00012022- £Nill lo Thinking Schools Academy Trust, of which Mr M Bailey was also a trustee. There were no ￿ountS gUt8tanding al the b81ance sheet date 12022- £Nill. During thè year the Charity paid a grant of £Nil12022 - £3201 lo Kent Nursing Institute, of which Mrs C Gore is also a Irustee. There were no amounts outstanding al the balance sheet date {2022 - £Nill. Page 37