REGISTERED CHARITY NUMBER: 213461
LANCASTER CHARITY
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Scott & Wilkinson LLP Chartered Accountants Dalton House 9 Dalton Square LANCASTER LA1 1WD
LANCASTER CHARITY
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Report of the Trustees | 2 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Financial Statements | 7 | to | 13 |
LANCASTER CHARITY
REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2020
| Trustees | Mr R W Carradice Chairman |
|---|---|
| Mrs S E Hodgson | |
| Rev C Newlands | |
| Councillor D Brookes | |
| Councillor R Redfern | |
| Mr J Gilbert (resigned 2/3/2020) | |
| Mr C Hanna | |
| Mr A Sandham | |
| Mrs P Barker | |
| Councillor K Budden | |
| Dame P Fielding | |
| Councillor A Biddulph | |
| Councillor K Frea | |
| Councillor J Pritchard | |
| Principal address | William Penny's |
| Regent Street | |
| LANCASTER | |
| LA1 1SG | |
| Registered charity number | 213461 |
| Independent examiner | Scott & Wilkinson LLP |
| Chartered Accountants | |
| Dalton House | |
| 9 Dalton Square | |
| LANCASTER | |
| LA1 1WD |
Page 1
LANCASTER CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Objectives and activities
Objectives and aims
Lancaster Charity is for the public benefit of the people of the City of Lancaster and provides almshouse accommodation and pensions. Residents and pensioners must be persons in need either not less than 55 years of age or who are disabled by age, accident or infirmity from maintaining themselves and who (except in special cases) have resided in the area for not less than three years.
Public benefit
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievement and performance
Charitable activities
Occupancy was again over 95%, due to the reduction in age limit and enlargement of catchment area.
Returns on investments are acceptable in low interest period.
General repairs and maintenance decreased slightly to £60,775.
Maintenance charges were not increased in 2020.
Covid 19 affected staff and residents as it did the rest of the population. Maintenance fees income was not affected, largely due to the age group of our residents, who are on a fixed income. There was some delay to re-lettings during the first lockdown due to restrictions on house moves. It also delayed completion of the phase 3 works at Penny's Hospital. We did not need to use any of the furlough/business support schemes as our staff were classified as key workers and so have remained fully employed throughout. There was some additional but limited financial outlay in purchasing health and safety items and equipment to make the premises as safe and secure as possible for residents and staff.
Financial review
Investment policy and objectives
Investments are held in accordance with the powers of the trustees.
Investments held can be split into three categories: endowment, current and extraordinary repair fund. The endowment and current investments are held to provide income to enable the charity to maintain the housing property and pay pensions. The extraordinary repair fund is invested for capital growth only and is a reserve to enable the charity to cope with any large or unexpected repair costs.
Reserves policy
The charity maintains sufficient free reserves to enable them to cover one year's fixed and administrative expenses and also any maintenance costs. Free reserves at the year end are £490,898 (2019 - £508,723).
Page 2
LANCASTER CHARITY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
Structure, governance and management
Governing document
Lancaster Charity is regulated by a scheme of the Charity Commissioners dated 6 January 1987. It is an amalgamation of almshouse and pension charities in Lancaster. The latest scheme combined six charities, but previous combinations precede this.
Recruitment and appointment of new trustees
The charity is administered and run by the trustees, six of whom are appointed by Lancaster City Council. The non Lancaster City Council trustees are nominated by the existing trustees.
Related parties
Platten and Benson Almshouse Charity
The charity has common trustees and management, but there are no transactions between the two charities.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
.............................................................................
Mr R W Carradice - Trustee
Page 3
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LANCASTER CHARITY
Independent examiner's report to the trustees of Lancaster Charity
I report to the charity trustees on my examination of the accounts of Lancaster Charity (the Trust) for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
S W Hinnigan FCA CTA Institute of Chartered Accountants in England and Wales Scott & Wilkinson LLP Chartered Accountants Dalton House 9 Dalton Square LANCASTER LA1 1WD
Date: .............................................
Page 4
LANCASTER CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Income and endowments from Donations and legacies Charitable activities Provision of Almhouse accommodation Investment income 2 Other income Total Expenditure on Charitable activities 3 Provision of Almhouse accommodation Relief of aged persons Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 276 229,622 21,340 52 251,290 287,251 490 287,741 17,067 (19,384) 1,880,085 1,860,701 |
Endowment fund £ - - - - - - - - (7,515) (7,515) 224,475 216,960 |
2020 Total funds £ 276 229,622 21,340 52 251,290 287,251 490 287,741 9,552 (26,899) 2,104,560 2,077,661 |
2019 Total funds £ 1,931 231,539 21,070 - |
|---|---|---|---|---|
| 254,540 295,839 490 |
||||
| 296,329 109,699 |
||||
| 67,910 2,036,650 |
||||
| 2,104,560 |
The notes form part of these financial statements
Page 5
LANCASTER CHARITY
BALANCE SHEET 31 DECEMBER 2020
| Notes Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank Creditors Amounts falling due within one year 12 Net current assets Total assets less current liabilities NET ASSETS Funds 13 Unrestricted funds Endowment funds Total funds |
Unrestricted funds £ 1,253,249 557,085 1,810,334 2,348 64,997 67,345 (16,978) 50,367 1,860,701 1,860,701 |
Endowment fund £ - 216,960 216,960 - - - - - 216,960 216,960 |
2020 Total funds £ 1,253,249 774,045 2,027,294 2,348 64,997 67,345 (16,978) 50,367 2,077,661 2,077,661 1,860,701 216,960 2,077,661 |
2019 Total funds £ 1,250,977 764,493 2,015,470 2,251 101,307 103,558 (14,468) 89,090 2,104,560 2,104,560 1,880,085 224,475 2,104,560 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. Mr R W Carradice - Trustee
The notes form part of these financial statements
Page 6
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
LANCASTER CHARITY
1. Accounting policies
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The financial statements 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 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 issued 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.
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance Computer equipment - 25% on reducing balance
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Page 7
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting policies - continued
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains or losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
2. Investment income
| Investment income | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Fixed asset investment income | 21,340 | 21,070 |
3. Charitable activities costs
| Direct Costs (see note 4) £ Provision of Almhouse accommodation 278,176 Relief of aged persons 490 278,666 |
Support costs (see note 5) £ 9,075 - 9,075 |
Totals £ 287,251 490 |
|---|---|---|
| 287,741 |
4. Direct costs of charitable activities
| Staff costs Rates and water Insurance Light and heat Telephone Website Repairs and maintenance Gardening Payments to named pensioners Residents' outings Christmas party Extraordinary repairs |
2020 £ 47,597 13,045 6,640 47,015 2,234 86 60,775 4,244 490 - - 96,540 278,666 |
2019 £ 45,285 11,162 6,965 56,669 2,334 30 64,268 4,244 490 515 1,073 93,588 |
|---|---|---|
| 286,623 |
Page 8
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
5. Support costs
Provision of Almhouse accommodation
Governance costs £ 9,075
Support costs, included in the above, are as follows:
Governance costs
| Governance costs | ||
|---|---|---|
| 2020 | 2019 | |
| Provision | ||
| of | ||
| Almhouse | Total | |
| accommodation | activities | |
| £ | £ | |
| Wages | 1,550 | 1,525 |
| Postage, travel and sundries | 1,177 | 3,055 |
| Independent examiner fees | 2,607 | 2,535 |
| Trade subscriptions | 388 | 598 |
| Depreciation of tangible fixed assets | 2,753 | 1,993 |
| Loss on sale of tangible fixed assets | 600 | - |
| 9,075 | 9,706 |
6. Trustees' remuneration and benefits
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
7. Staff costs
| Wages and salaries The average monthly number of employees during the year was as follows: Charitable activities Governance |
2020 £ 49,147 49,147 2020 4 1 5 |
2019 £ 46,810 |
|---|---|---|
| 46,810 | ||
| 2019 4 1 5 |
Page 9
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
7. Staff costs - continued
No employees received emoluments in excess of £60,000.
8. Comparatives for the statement of financial activities
| Income and endowments from Donations and legacies Charitable activities Provision of Almhouse accommodation Investment income Total Expenditure on Charitable activities Provision of Almhouse accommodation Relief of aged persons Total Net gains on investments NET INCOME Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 1,931 231,539 21,070 254,540 295,839 490 296,329 80,778 38,989 1,841,096 1,880,085 |
Endowment fund £ - - - - - - - 28,921 28,921 195,554 224,475 |
Total funds £ 1,931 231,539 21,070 |
|---|---|---|---|
| 254,540 295,839 490 |
|||
| 296,329 109,699 |
|||
| 67,910 2,036,650 |
|||
| 2,104,560 |
Page 10
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
9. Tangible fixed assets
| Cost At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Freehold property £ 1,245,000 - - 1,245,000 - - - 1,245,000 1,245,000 |
Fixtures and fittings £ 53,265 4,975 (600) 57,640 48,367 2,320 50,687 6,953 4,898 |
Computer equipment £ 585 - - 585 (494) (217) (711) 1,296 1,079 |
Totals £ 1,298,850 4,975 (600) 1,303,225 47,873 2,103 49,976 1,253,249 1,250,977 |
|---|---|---|---|---|
10. Fixed asset investments
| Fixed asset investments | |
|---|---|
| Listed | |
| investments | |
| £ | |
| Market value | |
| At 1 January 2020 | 764,493 |
| Revaluations | 9,552 |
| At 31 December 2020 | 774,045 |
| Net book value | |
| At 31 December 2020 | 774,045 |
| At 31 December 2019 | 764,493 |
There were no investment assets outside the UK.
Page 11
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
| 11. Debtors: amounts falling due within one year Prepayments and accrued income 12. Creditors: amounts falling due within one year Other creditors 13. Movement in funds Unrestricted funds General fund Designated fund Endowment funds Permanent endowment TOTAL FUNDS Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 251,290 Designated fund - 251,290 Endowment funds Permanent endowment - TOTAL FUNDS 251,290 |
At 1/1/20 £ 1,759,700 120,385 1,880,085 224,475 2,104,560 Resources expended £ (287,741) - (287,741) - (287,741) |
2020 £ 2,348 2020 £ 16,978 Net movement in funds £ (15,553) (3,831) (19,384) (7,515) (26,899) Gains and losses £ 20,898 (3,831) 17,067 (7,515) 9,552 |
2019 £ 2,251 2019 £ 14,468 At 31/12/20 £ 1,744,147 116,554 1,860,701 216,960 2,077,661 Movement in funds £ (15,553) (3,831) (19,384) (7,515) (26,899) |
|---|---|---|---|
Page 12
LANCASTER CHARITY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020
13. Movement in funds - continued
Comparatives for movement in funds
| At 1/1/19 £ Unrestricted funds General fund 1,739,281 Designated fund 101,815 1,841,096 Endowment funds Permanent endowment 195,554 TOTAL FUNDS 2,036,650 Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 254,540 (296,329) Designated fund - - 254,540 (296,329) Endowment funds Permanent endowment - - TOTAL FUNDS 254,540 (296,329) |
Net movement in funds £ 20,419 18,570 38,989 28,921 67,910 Gains and losses £ 62,208 18,570 80,778 28,921 109,699 |
At 31/12/19 £ 1,759,700 120,385 |
At 31/12/19 £ 1,759,700 120,385 |
|---|---|---|---|
| 1,880,085 224,475 |
|||
| 2,104,560 | |||
| Movement in funds £ 20,419 18,570 38,989 28,921 67,910 |
|||
| 38,989 28,921 |
|||
| 67,910 |
14. Related party disclosures
There were no related party transactions for the year ended 31 December 2020.
Page 13