**Charity number: 212828** **Richard Watts and the City of Rochester Almshouse Charities** **Trustees' report and financial statements** **for the year ended 31 December 2024** **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 - 37| ## **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 2024** ## **Trustees** Alex Clarabut Barrie James Fewtrell (resigned 25 January 2024) Shirley Gurteen Liz Janz (resigned 31 December 2024) Colin McCarthy Keith Povey Linda Reay Peter James Smith Kamaldeep Tesse (resigned 31 December 2024) Timothy Newman Carolyn Mary Sims (appointed 5 December 2024) Richard Patteson-Knight (appointed 19 September 2024) Ruth Curry (appointed 25 July 2024) ## **Charity registered number** 212828 ## **Principal office** Administrative Offices Watts Almshouses Maidstone Road Rochester Kent ME1 1SE ## **Chief executive officer** Martin Sissons ## **Independent auditor** Kreston Reeves LLP Chartered Accountants Statutory Auditor Maritime Place Quayside Chatham Maritime Chatham Kent ME4 4QZ ## **Bankers** Barclays Business Banking 263-265 High Street Chatham Kent ME4 4BZ CCLA Investment Management 1 Angel Lane London EC4R 3AB Page 1 **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 2024** ## **Solicitors** Brachers LLP Somerfield House 59 London Road Maidstone Kent ME16 8JH ## **Stockbrokers** Canaccord Genuity Wealth Ltd 41 Lothbury London EC2R 7AE ## **Building Surveyors** Consult Construct Ltd Gunpowder Works Off Bysing Wood Road Faversham Kent ME13 7UD ## **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 Page 2 ## **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report for the year ended 31 December 2024** 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 2024. ## **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 charity is regulated by a Scheme of the Charity Commissioners (see "Constitution" section on page 7), which 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 subsequent 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** Key Performance Indicators, also known as KPIs, help to define and measure progress toward organisational goals. KPIs have been identified for each of the Board Committees. These will be monitored across the year and reported on annually. The following represents our performance against our KPIs in the accounting period of 2024. - Achieve at least 95% occupancy of the Almshouse accommodation 95.6% - Allocate and spend at least 90% of the Grant Funds. 84.54% - Arrears Level to be kept to a minimum – seek speedy settlement of rents owed and achieve at least 95% of all rents due. 83.81% - Achieve at least 95% occupancy of all commercial and residential properties 96.86% - In the context of the Annual Budget, the Income, Expenditure & the net out-turn to be + or – 10% of projections. - Expenditure 2.5% - Income -3.7% - Balance of unrestricted Income Funds were maintained between 6 months’ and one year’s running costs. Page 3 **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report (continued) for the year ended 31 December 2024** ## **Achievements and performance (continued)** ## **b. Review of activities** The Charities, which have now been in operation in the ME1 and ME2 area of Medway in Kent for almost 450 years, continue to thrive under the governance of a Board of mostly local Trustees. The aims and objectives of the organisation are to help those in need to have access to affordable housing when they reach state retirement age and that those in need in the local community are supported either directly or indirectly through other organisations. The organisation manages 67 Almshouses which are on four different sites in central Rochester. To qualify for the Almshouses, applicants need to meet the following criteria. - Be resident in ME1 or ME2 or looking to move back to be closer to family. - Be of state pensionable age - Be in good health and be able to live independently. - Have a low income and have savings below a set amount. - To not own their own property In addition, the organisation supports local people through the delivery of a number of different services for those most in need in ME1 and ME2. These include: - Grants to organisations - Grants to families and others in need - Grants to local schools - A Home Help service We are incredibly proud of our 450-year history and of our benefactor, Richard Watts, who set up the first charity during the reign of Queen Elizabeth I. The charities have continued to evolve during our long history and we are now taking further steps to modernise the charities, adopting the latest governance structure recommended by the Charity Commission, thereby ensuring we are fit for another 450 years. Concurrently, we have reviewed our Strategy and have applied to the Charity Commission to extend our geographical reach to the whole of Medway, to allow us to try and help more beneficiaries while ensuring our services are still relevant and needed in the local community. Richard Watts and the City of Rochester Almshouse Charities is planning on transferring all operations, assets, contracts, and staff to a newly created Charitable Incorporated Organisation (CIO) on 1 April 2025. The new incorporated charity registered in September 2024 is called Richard Watts Charities CIO, but will operate under the name of Richard Watts Charities. This process of change is referred as the incorporation process and creates a legal identify for the charity, with much limited liability for individual trustees, and the foundation on which to develop our services further across the wider geographical area of Medway The incorporation process will involve a new charity being established to which the staff and assets of the old charity will be transferred. Ultimately, we will continue to provide Almshouse accommodation, as we always have, albeit under a slightly different name – Richard Watts Charities CIO. We hope this modernisation and renewed focus will allow us better to support our existing beneficiaries while allowing us to extend our services into the wider Medway area. ## **Operational Delivery** The CEO and his team of staff manage the charities’ operations. These staff include: - Deputy CEO/Asset and Development Manager - Finance Manager - Senior Warden - Site Manager - Home Help Service Coordinator Page 4 **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report (continued) for the year ended 31 December 2024** ## **Achievements and performance (continued)** - Grants Administrator - HR Project Manager In addition, there are teams of wardens, gardeners, home helps and domestic staff to ensure the smooth running of all services. ## Overview The results for the year show a deficit on unrestricted funds before investment gains of £169,239 and a decrease on endowment funds of £203 meaning that there is an overall deficit before investments gains amounting to £169,442 (2023: £3,924). Incoming resources increased from £1,416,871 in 2023 to £1,544,562 in 2024. Investment income increased by £87,543 to £1,052,721 whilst income from charitable activities increased to £402,637. Total resources expended increased from £1,420,795 to £1,714,004 in 2024. At year end the charity's investments comprised investment properties of £15,028,278 and listed investments of £7,338,801. Gains in the above investments together with the deficit for the year, resulted in a surplus of £845,919 to be added to total funds brought forward, meaning the total net assets at 31 December 2024 were £27,283,087. Endowment funds totalled £25,555,310 (2023 - £22,4709,391 as restated), designated funds totalled £607,873 (2023 - £635,279) and general funds totalled £1,119,904 (2023 - £1,209,408). ## **Funding our work** The organisation is self-funding through investments. These investments take a variety of forms and range from stocks and shares to commercial properties. The investment income funds the services we deliver to the local community and support the operations of the Almshouses, the provision of which is heavily subsidised by the organisation. The attached Accounts provide detailed information about the organisation’s financial performance. ## **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. Page 5 **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report (continued) for the year ended 31 December 2024** ## **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 2024 the general reserves amounted to £1,119,904 (see note 20) which is slightly lower 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. Page 6 **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report (continued) for the year ended 31 December 2024** ## **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 current governance structure is based on a committee structure which is outlined below. In addition to full board meetings and an AGM, the following committees met at regular intervals through the year. - Estates - Finance and Investment - House and Grants - Remuneration and Staffing The full list of Trustees is below. ## **Trustees - 2024** - Keith Povey - Chair of the Board - Tim Newman – Vice Chair of the Board of Trustees and Vice Chair of Estates - Linda Reay – Vice Chair of Remuneration ad Staffing - Peter James Smith – Chair of Finance and Investment - Alex Clarabut – Chair of Estates - Colin McCarthy – Chair of Remuneration and Staffing - Shirley Gurteen – Chair of House and Grants - Ruth Curry – Vice Chair of Finance and Investments Committee -appointed 25[th] July 2024 - Richard Patteson-Knight – appointed 19[th] September 2024 - Carolyn Sims – Vice Chair of House and Grants – appointed 5[th] December 2024 Page 7 ## **Richard Watts and the City of Rochester Almshouse Charities** ## **Trustees' report (continued) for the year ended 31 December 2024** ## **Structure, governance and management (continued)** Trustees - Resigned - Barrie Fewtrell - resigned 25[th] January 2024 - Kamaldeep Tesse – resigned 1[st] November 2024 - Eliabeth Janz – resigned 11[th] December 2024 We would like to extend our sincere thanks to Barrie, Kam and Liz for their magnificent help and guidance over many years. Each Committee focusses on a specific area of operation for the organisation and advises both the Board and the CEO regarding major operational and strategic decisions. The organisation also employs a number of professional advisors to provide expert and relevant advice regarding operations and strategy. ## **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 Trustee Board monitor risks at every Board and Committee Meeting with new risks being identified and agreed mitigation being reported upon. Each quarter one particular risk on the risk register is reviewed in detail to ensure organisational risks are being monitored and managed effectively. Operational risks are managed through the senior management team for the organisation. ## **Plans for future periods** The new CIO has been established and on 1 April 2025 all assets were transferred to it from Richard Watts and the City of Rochester Almshouse Charities. As part of this process the objects for the organisation have been reviewed which have informed the plans for the new organisation. - The reach of the organisation has been extended to cover the whole of the Medway Unitary Authority - Restrictions have bene lifted regarding some of the resources we have which are being allocated to our grants provision. - We are actively disposing of some of our larger assets. - Looking to establish new Almshouse provision in the wider community of the Medway Unitary Authority All of the above changes should help us to meet our agreed Key performance Indications which are around supporting the local community. In order to help us deliver on our plans we will also be reviewing the resources we have allocated to each area of our work to ensure we can continue to deliver and develop the services to our local community now that our reach has expanded to include the whole of the Medway Unitary Authority. We are also planning to work in partnership with other organisations to achieve our goals. Page 8 Richard Watts and the Clty of Rochestor Almshouse Charitie$ Trustees. report Icontinuedl for the year endgd 31 Decembor 2024 Statement of Trustws. responslblllties The Trustees are responsiblg for preparing the Trustees. report and th8 financial statement$ in accordance with applicabte I￿ and Uniled Kingdom Accounting Standards (United Kingdom Generally A￿epted Accounting Praclicel. The law applicable to charitie5 in England & Wales requires the Trustees to prepare financial ststements for each financial which give a true and fair view of the slate of affairs of the Charrty and of rts incoming resources and application of resour￿$, including it8 income and expenditu￿, for that period. In preparing these financial statements, the Trustees are required to.. select suitable ac¢ounling policies and then apply them consistently, observe the methods and principles of the Charities SORP {FRS 1021,. make judgements and aecounling estimales that are reasonable and prudent.. state whether applicable UK Accounting Stsndards {FRS 1021 have been followed. subject to any materia departures disclosed and exp18ined in the financial slalemenls., prepare the financial statements on the going conGem basis unless it is inappropriate to presume that the Charity will ¢ontinue in business. The Trustees are responsible for keeping adequate accounting records that ar8 sufficient to show and explain the Chartys Iransa¢lion$ and discbse wlh reasonable accuracy at any lime the financial position of the Charity and enable them lo ensure that the financial slalements ¢omply with the Charities Act 2011, the Charity IAccounls and Reports) Regulations 2008 and the provisions of the InJsl deed. They are also responsible for safeguarding the a$sets of the Charty and hence for taking reasonable steps for the prevèntion and detection of fraud and other irregularities. Audltor The audrtors, Krgston Reeves LLP. hav8 indicated their willingness to continue in office. The designated Trustees wll propose i motion r8appoinling the auditors al a meeting of the Trustees. Approved by or(ler of th8 memt*rs of the board of Trustees and signed on their behalf by.. Keith Povey Date: Irlosf J Page 9 ## **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 2024 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). The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 December 2024 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the 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. Page 10 ## **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)** ## **Other information** The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **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 requires us to report to you if, in our opinion: - the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - 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 10, 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. Page 11 **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: - 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 - Assessment of identified fraud risk factors; and - 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 - Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation; and - Conducting interviews with appropriate personnel to gain further insight into the control systems implemented, and the risk of irregularity; and - Challenging assumptions and judgements made by management in its significant accounting estimates; and - Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and - Reading minutes of meetings of those charged with governance; and - Physical inspection of tangible assets susceptible to fraud or irregularity; and - Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions. Page 12 **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)** Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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 collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - 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. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. - 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. - 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 ## **Kreston Reeves LLP** Chartered Accountants Statutory Auditor Chatham > Date: 16 May 2025 Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 13 **Richard Watts and the City of Rochester Almshouse Charities** ## **Statement of financial activities for the year ended 31 December 2024** |**Note**
**Income and endowments from:**
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
**Total income and endowments**
**Expenditure on:**
Raising funds
8,9
Charitable activities
11
**Total expenditure**
**Net expenditure before net 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**
**2024**
**£**
**39,204**
**402,637**
**1,043,064**
**50,000**
**1,534,905**
**408,981**
**1,295,163**
**1,704,144**
**(169,239)**
**52,329**
**(116,910)**
**1,844,687**
**(116,910)**
**1,727,777**|**Endowment**
**funds**
**2024**
**£**
**-**
**-**
**9,657**
**-**
**9,657**
**-**
**9,860**
**9,860**
**(203)**
**846,122**
**845,919**
**24,709,391**
**845,919**
**25,555,310**|**Total**
**funds**
**2024**
**£**
**39,204**
**402,637**
**1,052,721**
**50,000**
**1,544,562**
**408,981**
**1,305,023**
**1,714,004**
**(169,442)**
**898,451**
**729,009**
**26,554,078**
**729,009**
**27,283,087**|As restated
Total
funds
2023
£
396
361,297
965,178
90,000
1,416,871
298,345
1,122,450
1,420,795
(3,924)
1,346,854
1,342,930
25,211,148
1,342,930
26,554,078| |---|---|---|---|---| The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 17 to 37 form part of these financial statements. Page 14 Richard Watts and th9 City of Ro¢h￿ter Almshouse Charitie5 Balance sheel as at 31 December 2024 As restsled 2023 2024 Note Fixod assets Tangible assgls Investments Inveslmenl property 14 3.476,123 7.338,801 15,028,278 3,476,123 7,310,513 14.444,628 16 15 25,843.202 25,231,264 Current assets DebtQTS Cash al bank and in hand 17 388,371 1.339.011 310,952 1,334,895 24 1,727,382 1,645,847 Creditors.. amounts falbng due within one 18 (243.003) 1292,802) Net eurront ass•ts 1 A84,379 1,353.045 Creditors". amounts falling due after more than one year 19 144.494) 130,231 Net assets 27.283,087 26,554,078 Charity funds Endowment funds Unrestncted funds 20 20 25.555,310 1.727,777 24,709.391 1.844,687 Tolal funds 27.283.087 26,554,078 The financial StsI￿entS were approved and auth0ri58d for issue by the Trustees and signed on their behall by.. Dale.. i ¥lo sl > s The notes on pages 17 10 37 form part of these financial slalemenls. Keith Povey Page 15 ## **Richard Watts and the City of Rochester Almshouse Charities** ## **Statement of cash flows for the year ended 31 December 2024** |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
23
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property
Purchase of investment property
**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**
24|**2024**
**£**
**(1,335,118)**
**1,052,721**
**2,465,474**
**(2,178,961)**
**-**
**-**
**1,339,234**
**4,116**
**1,334,895**
**1,339,011**|As restated
2023
£
(1,060,454)| |---|---|---| |||965,178
693,242
(297,202)
361,000
(5,000)
1,717,218| |||656,764
678,131
1,334,895| The notes on pages 17 to 37 form part of these financial statements Page 16 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **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. ## **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. Page 17 **Richard Watts and the City of Rochester Almshouse Charities** **Notes to the financial statements for the year ended 31 December 2024** ## **2. Accounting policies (continued)** ## **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 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. ## **2.6 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. ## **2.7 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. ## **2.8 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. Page 18 **Richard Watts and the City of Rochester Almshouse Charities** **Notes to the financial statements for the year ended 31 December 2024** ## **2. Accounting policies (continued)** ## **2.9 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. ## **2.10 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. ## **2.11 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. ## **2.12 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 14 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. ## **2.13 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 15 to the financial statements. ## **2.14 Furniture and equipment** The cost of furniture and equipment has been charged to the Statement of Financial Activities on acquisition. Page 19 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements** **for the year ended 31 December 2024** ## **3. Critical accounting estimates and areas of judgement** Estimates and judgements 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 judgement: ## **Investment properties at Market value** The Charity holds investment property with fair value of £13,292,500 at the year end (see note 15). 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 14). 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 2024** ## **4. Income from donations and legacies** |**Unrestricted**
**funds**
**2024**
**£**
Donations
2,157
Legacies
37,047
39,204
Total 2023
396
**Income from charitable activities**
**Unrestricted**
**funds**
**2024**
**£**
Residents' maintenance contributions
366,396
Home Help income
36,241
402,637
Total 2023
361,297|**Total**
**funds**
**2024**
**£**
**2,157**
**37,047**
**39,204**
396
**Total**
**funds**
**2024**
**£**
**366,396**
**36,241**
**402,637**
361,297|Total
funds
2023
£
396
-| |---|---|---| |||396| |||Total
funds
2023
£
330,562
30,735| |||361,297| |||| ## **5. Income from charitable activities** Page 21 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **6. Investment income** |**Unrestricted**
**funds**
**2024**
**£**
Rents receivable
715,613
Service charges receivable
22,521
Income from listed investments
271,152
Insurances recoverable
33,778
1,043,064
Total 2023
951,449|**Endowment**
**funds**
**2024**
**£**
-
-
9,657
-
9,657
13,729|**Total**
**funds**
**2024**
**£**
**715,613**
**22,521**
**280,809**
**33,778**
**1,052,721**
965,178|Total
funds
2023
£
680,132
16,283
256,397
12,366| |---|---|---|---| ||||965,178| ||||| ## **7. Other incoming resources** |Profit on disposal of investment property
Dilapidation income
Total 2023|**Unrestricted**
**funds**
**2024**
**£**
-
50,000
50,000
90,000|**Total**
**funds**
**2024**
**£**
**-**
**50,000**
**50,000**
90,000|Total
funds
2023
£
90,000
-| |---|---|---|---| ||||90,000| ||||| Page 22 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **8. Property expenditure** ## **Costs of raising voluntary income** |**Unrestricted**
**funds**
**2024**
**£**
Commercial property repairs and maintenance
89,017
Residential property repairs and maintenance
95,149
Voids expenditure
21,734
Rent payable
1,471
Insurances
48,122
Land and estate agents
16,643
Solicitors
24,046
Surveyors
21,251
Bad debts
47,569
Sundry expenses
2,383
H&S Consultancy
713
HR Advisors
5,781
373,879
Total 2023
283,903|**Total**
**funds**
**2024**
**£**
**89,017**
**95,149**
**21,734**
**1,471**
**48,122**
**16,643**
**24,046**
**21,251**
**47,569**
**2,383**
**713**
**5,781**
**373,879**
283,903|Total
funds
2023
£
42,702
120,448
(16,663)
1,471
25,250
20,178
57,991
26,756
(14,627)
12,540
3,687
4,170
283,903| |---|---|---| Page 23 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **9. Investment management costs** |**Unrestricted**
**funds**
**2024**
**£**
Stockbroker's fees
35,102
Total 2023
14,442|**Total**
**funds**
**2024**
**£**
**35,102**
14,442|Total
funds
2023
£
14,442| |---|---|---| |||| ## **10. Analysis of grants** |Grants paid
Total 2023|**Grants to**
**Institutions**
**2024**
**£**
86,900
75,301|**Grants to**
**Individuals**
**2024**
**£**
3,894
6,118|**Total**
**funds**
**2024**
**£**
**90,794**
81,419|Total
funds
2023
£
81,419| |---|---|---|---|---| |||||| Page 24 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **11. Analysis of expenditure by activities** |Almshouse
Outpensions
Home Help
Poor Traveller's House
Total 2023|**Direct costs**
**2024**
**£**
684,432
22,400
73,638
10,867
791,337
658,582|**Grants**
**payable**
**(note 10)**
**2024**
**£**
90,794
-
-
-
90,794
81,419|**Support**
**costs**
**2024**
**£**
422,892
-
-
-
422,892
382,449|**Total**
**funds**
**2024**
**£**
**1,198,118**
**22,400**
**73,638**
**10,867**
**1,305,023**
1,122,450|Total
funds
2023
£
1,039,935
26,515
40,827
15,173| |---|---|---|---|---|---| ||||||1,122,450| ||||||| ## **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 2023|**Almshouse**
**2024**
**£**
247,538
17,471
26,250
100,638
250,923
7,859
6,155
9,035
-
18,563
684,432
576,067|**Out-**
**pensions**
**2024**
**£**
-
-
-
-
-
-
-
-
22,400
-
22,400
26,515|**Home Help**
**2024**
**£**
73,448
-
-
-
-
-
-
190
-
-
73,638
40,827|**Poor**
**Traveller's**
**House**
**2024**
**£**
-
3,281
2,242
616
1,760
-
798
2,170
-
-
10,867
15,173|**Total**
**funds**
**2024**
**£**
**320,986**
**20,752**
**28,492**
**101,254**
**252,683**
**7,859**
**6,953**
**11,395**
**22,400**
**18,563**
**791,337**
658,582|Total
funds
2023
£
265,561
16,887
23,830
74,164
182,699
6,852
4,903
15,607
26,515
41,564| |---|---|---|---|---|---|---| |||||||658,582| |||||||| Page 25 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **11. 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
Legal and professional fees
Sundry expenses
Computer equipment
Health and safety
Auditors' remuneration
Auditors' remuneration - non audit|**Total**
**funds**
**2024**
**£**
**285,683**
**4,705**
**775**
**4,967**
**4,206**
**8,989**
**614**
**3,858**
**22,115**
**53,091**
**2,064**
**13,382**
**683**
**15,846**
**1,914**
**422,892**|Total
funds
2023
£
258,119
4,986
910
3,234
4,171
14,654
16
3,507
16,104
29,379
1,269
30,355
745
13,200
1,800| |---|---|---| |||382,449| Page 26 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **12. Staff costs** |Wages and salaries
Social security costs
Other pension costs|**2024**
**£**
**516,188**
**42,698**
**47,783**
**606,669**|2023
£
446,805
36,072
40,803| |---|---|---| |||| |||523,680| The average number of persons employed by the Charity during the year was as follows: |**2024**|2023| |---|---| |**No.**|No.| |**26**|25| The average headcount expressed as full-time equivalents was: |**2024**|2023| |---|---| |**No.**|No.| |**15**|15| The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |||**2024**|2023| |---|---|---|---| |||**No.**|No.| |In the band £60,001|- £70,000|**1**|1| During the year, the five (2023 - five) key management personnel received remuneration and benefits, including employer's national insurance contributions, of £265.952 (2023 - £223,186). ## **13. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £NIL). Page 27 **Richard Watts and the City of Rochester Almshouse Charities** **Notes to the financial statements for the year ended 31 December 2024** ## **14. Tangible fixed assets** |**Cost or valuation**
At 1 January 2024
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**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 28 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **15. Investment property** |**Valuation**
At 1 January 2024 (as restated)
Gain on revaluation
At 31 December 2024|**Freehold**
**investment**
**property**
**£**
**14,444,628**
**583,650**| |---|---| ||**15,028,278**| The investment properties were valued in 2020 by an independent firm of Chartered Surveyors on an open market value for existing use basis. A formal valuation is to be undertaken during 2025. In the interim internal valuations have been completed. ## **16. Fixed asset investments** |**Cost or valuation**
At 1 January 2024
Additions
Disposals
Revaluations
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**Listed**
**investments**
**£**
**7,310,513**
**2,178,961**
**(2,431,242)**
**280,569**| |---|---| ||**7,338,801**
**7,338,801**| ||7,310,513| Page 29 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **17. Debtors** |**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
Insurance recoverable
**18.**
**Creditors: Amounts falling due within one year**
Trade creditors
Other taxation and social security
Accruals and deferred income
Deferred income at 1 January 2024
Income deferred during the year
Amounts released from previous periods
**Deferred income at 31 December 2023**
**19.**
**Creditors: Amounts falling due after more than one year**
Other creditors|**2024**
**£**
**122,274**
**113**
**209,917**
**56,067**
**388,371**
**2024**
**£**
**17,267**
**2,584**
**223,152**
**243,003**
**160,384**
**137,767**
**(139,322)**
**158,829**
**2024**
**£**
**44,494**|2023
£
74,650
-
182,168
54,134| |---|---|---| |||310,952
2023
£
38,090
1,900
252,812| |||292,802
141,538
139,467
(120,621)| |||160,384
2023
£
30,231| Page 30 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **20. 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**|**As restated**
**Balance at 1**
**January**
**2024**
**£**
**71,890**
**121,862**
**253,776**
**123,493**
**57,868**
**451**
**5,939**
**635,279**
**1,209,408**
**1,844,687**|**Income**
**£**
**3,902**
**7,548**
**10,832**
**21,644**
**40,384**
**-**
**-**
**84,310**
**1,450,595**
**1,534,905**|**Expenditure**
**£**
**-**
**(135,651)**
**(27,123)**
**(13,678)**
**(3,143)**
**-**
**-**
**(179,595)**
**(1,524,549)**
**(1,704,144)**|**Transfers**
**in/out**
**£**
**5,500**
**91,848**
**(41,931)**
**12,462**
**-**
**-**
**-**
**67,879**
**(67,879)**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**52,329**
**52,329**|**Balance at**
**31**
**December**
**2024**
**£**
**81,292**
**85,607**
**195,554**
**143,921**
**95,109**
**451**
**5,939**
**607,873**| |---|---|---|---|---|---|---| |||||||**1,119,904**
**1,727,777**| Page 31 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **20. 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**|**23,192,390**
**1,514**
**593,713**
**640,461**
**26,985**
**254,328**
**24,709,391**
**26,554,078**|**-**
**-**
**-**
**-**
**18**
**9,639**
**9,657**
**1,544,562**|**-**
**-**
**-**
**-**
**(200)**
**(9,660)**
**(9,860)**
**(1,714,004)**|**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**850,368**
**1**
**2**
**(1)**
**71**
**(4,319)**
**846,122**
**898,451**|**24,042,758**
**1,515**
**593,715**
**640,460**
**26,874**
**249,988**
**25,555,310**| |---|---|---|---|---|---|---| |||||||**27,283,087**| Page 32 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements** **for the year ended 31 December 2024** ## **20. Statement of funds (continued)** ## **Statement of funds - prior year (as restated)** |**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
2023
£
65,950
148,846
275,436
120,605
57,513
451
5,939
674,740
1,157,235
1,831,975|Income
£
5,940
1,130
7,699
15,673
355
-
-
30,797
1,372,345
1,403,142|Expenditure
£
-
(70,629)
(35,676)
(25,945)
-
-
-
(132,250)
(1,278,685)
(1,410,935)|Transfers
in/out
£
-
50,000
15,000
13,160
-
-
-
78,160
(78,160)
-|As restated
Gains/
(Losses)
£
-
(7,485)
(8,683)
-
-
-
-
(16,168)
36,673
20,505|As restated
Balance at
31
December
2023
£
71,890
121,862
253,776
123,493
57,868
451
5,939
635,279| |---|---|---|---|---|---|---| |||||||1,209,408
1,844,687| Page 33 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **20. 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**|21,855,907
1,575
593,950
646,857
25,800
255,084
23,379,173
25,211,148|-
-
-
-
796
12,933
13,729
1,416,871|-
-
-
-
(200)
(9,660)
(9,860)
(1,420,795)|-
-
-
-
-
-
-
-|1,336,483
(61)
(237)
(6,396)
589
(4,029)
1,326,349
1,346,854|23,192,390
1,514
593,713
640,461
26,985
254,328
24,709,391| |---|---|---|---|---|---|---| |||||||26,554,078| Page 34 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **21. Summary of funds** ## **Summary of funds - current year** |Designated
funds
General funds
Endowment
funds|**As restated**
**Balance at 1**
**January**
**2024**
**£**
**635,279**
**1,209,408**
**24,709,391**
**26,554,078**|**Income**
**£**
**84,310**
**1,450,595**
**9,657**
**1,544,562**
Income
£
30,797
1,372,345
13,729
1,416,871|**Expenditure**
**£**
**(179,595)**
**(1,524,549)**
**(9,860)**
**(1,714,004)**
Expenditure
£
(132,250)
(1,278,685)
(9,860)
(1,420,795)|**Transfers**
**in/out**
**£**
**67,879**
**(67,879)**
**-**
**-**
Transfers
in/out
£
78,160
(78,160)
-
-|**Gains/**
**(Losses)**
**£**
**-**
**52,329**
**846,122**
**898,451**
As restated
Gains/
(Losses)
£
(16,168)
36,673
1,326,349
1,346,854|**Balance at**
**31**
**December**
**2024**
**£**
**607,873**
**1,119,904**
**25,555,310**| |---|---|---|---|---|---|---| |||||||**27,283,087**| |||||||Balance at
31
December
2023
£
635,279
1,209,408
24,709,391| |**Summary of funds - prior year**||||||| |Designated
funds
General funds
Endowment
funds|Balance at
1 January
2023
£
674,740
1,157,235
23,379,173
25,211,148|||||| |||||||26,554,078| ## **22. Analysis of net assets between funds** **Analysis of net assets between funds - current period** |**Unrestricted**
**funds**
**2024**
**£**
Tangible fixed assets
-
Fixed asset investments
1,057,239
Investment property
-
Current assets
958,035
Creditors due within one year
(243,003)
Creditors due in more than one year
(44,494)
**Total**
1,727,777|**Endowment**
**funds**
**2024**
**£**
3,476,123
6,281,562
15,028,278
769,347
-
-
25,555,310|**Total**
**funds**
**2024**
**£**
**3,476,123**
**7,338,801**
**15,028,278**
**1,727,382**
**(243,003)**
**(44,494)**| |---|---|---| |||**27,283,087**| Page 35 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **22. Analysis of net assets between funds (continued)** ## **Analysis of net assets between funds - prior period (as restated)** |Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Unrestricted
funds
2023
£
-
1,012,932
-
1,154,788
(292,802)
(30,231)
1,844,687|Endowment
funds
2023
£
3,476,123
6,297,581
14,444,628
491,059
-
-
24,709,391|Total
funds
2023
£
3,476,123
7,310,513
14,444,628
1,645,847
(292,802)
(30,231)| |---|---|---|---| ||||26,554,078| ## **23. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income for the period (as per Statement of Financial Activities)
**Adjustments for:**
Gains on investment property
Gains on investments
Dividends, interest and rents from investments
Increase in debtors
Increase/(decrease) in creditors
Profit on disposal of investment property
**Net cash used in operating activities**
**24.**
**Analysis of cash and cash equivalents**
Cash in hand|**2024**
**£**
**729,009**
**(583,650)**
**(314,801)**
**(1,052,721)**
**(77,419)**
**(35,536)**
**-**
**(1,335,118)**
**2024**
**£**
**1,339,011**|As restated
2023
£
1,342,930
(1,152,128)
(194,726)
(965,178)
(43,459)
42,107
(90,000)| |---|---|---| |||(1,060,454)
2023
£
1,334,895| Page 36 **Richard Watts and the City of Rochester Almshouse Charities** ## **Notes to the financial statements for the year ended 31 December 2024** ## **25. Analysis of changes in net debt** ||**At 1**||**At 31**| |---|---|---|---| ||**January**||**December**| ||**2024**|**Cash flows**|**2024**| ||**£**|**£**|**£**| |Cash at bank and in hand|**1,334,895**|**4,116**|**1,339,011**| ## **26. Operating lease commitments** At 31 December 2024 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|**2024**
**£**
**732**
**-**
**732**|2023
£
976
732| |---|---|---| |||| |||1,708| ## **27. Related party transactions** During the year the Charity paid a grant of £Nil (2023 - £100) to Rochester Grammar School for Girls Charity, of which Mr M Bailey was also a trustee. There were no amounts outstanding at the balance sheet date (2023 - £Nil). During the year the Charity paid grants totalling £Nil (2023 - £9,000) to Thinking Schools Academy Trust, of which Mr M Bailey was also a trustee. There were no amounts outstanding at the balance sheet date (2023 - £Nil). ## **28. Post balance sheet events** Richard Watts and the City of Rochester Almshouse Charities has transferred all operations, assets, contracts, and staff to a newly created Charitable Incorporated Organisation (CIO) on 1 April 2025. The new incorporated charity registered in September 2024 is called Richard Watts Charities CIO, but will operate under the name of Richard Watts Charities. ## **29. Prior year adjustment** A prior year adjustment has been made to adjust for the fair value of the investment property as of 31 December 2023 based on a internal valuation. The adjustment was for a cumulative gain of £1,152,128, bringing the closing fair value of investment property as of 31 December 2023 to £14,444,628. Page 37