**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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts 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