2023-12-31-accounts - Lancaster Charity

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REGISTERED CHARITY NUMBER: 213461

LANCASTER CHARITY

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Scott & Wilkinson Dalton House

9 Dalton Square LANCASTER LA1 1WD

LANCASTER CHARITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

		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
Detailed Statement of Financial Activities	14	to	15

LANCASTER CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees	Mr R W Carradice Chairman
	Mrs S E Hodgson
	Councillor D Brookes
	Councillor R Redfern
	Mr C Hanna
	Mr A Sandham
	Mrs P Barker
	Councillor K Budden
	Dame P Fielding
	Councillor A Biddulph (resigned 11/5/2023)
	Councillor K Frea (resigned 11/5/2023)
	Councillor J Pritchard
	Rev L Vasey-Saunders
	Ms N Combe
	Councillor S McGregor (appointed 11/5/2023)
	Councillor C Cozler (appointed 11/5/2023)
Principal address	William Penny's
	Regent Street
	LANCASTER
	LA1 1SG
Registered charity number	213461
Independent examiner	Scott & Wilkinson
	Dalton House
	9 Dalton Square
	LANCASTER
	LA1 1WD

Page 1

LANCASTER CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. 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 95% over the year, due to the need to leave several properties un-let as they required full refurbishment and bringing up to appropriate standards prior to reallocation.

A substantial waiting list built up over the course of the first part of the year and so a decision was made to close the waiting list in July to be able to manage the expectation of the applicants. A decision was taken to form sub-committees to deal with key aspects of the charity's work e.g. property, policy and personnel and finance. This resulted in identifying several key issues which required attention, including; recruitment of an Assistant to the Almoner, development of a financial and budgeting policy and formulating a project plan for works required over the coming years. All these aims and objectives have been achieved. One of the first things that the Assistant to the Almoner undertook was a review of the waiting list and this exercise resulted in us being able to reopen the waiting list in December.

Returns on investments, whilst still not at pre-pandemic levels, have shown some kind of recovery.

General repairs and maintenance were significantly increased at £93,498, mainly due to our ongoing programme of upgrading properties as they become vacant. Due to a large-scale essential repair project at William Penny's, costs met from the General Fund were substantial at £129,940, but were lower than the previous year.

Maintenance charges were increased in May 2023, however these do not fully meet the Charity's budgeting needs and a full review of the maintenance fees will be carried out by the new finance committee over the coming year.

We also work to review and find ways of meeting the needs of our residents and their homes, ensuring that legal requirements are fulfilled, and that the Charity is able to sustain its position for the future.

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 £500,887 (2022 - £542,537).

Page 2

LANCASTER CHARITY

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023.

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 member of the 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

The Institute of Chartered Accountants in England and Wales

Scott & Wilkinson Dalton House 9 Dalton Square LANCASTER LA1 1WD

Date: .............................................

Page 4

LANCASTER CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Notes Income and endowments from Donations and legacies Charitable activities Provision of Almhouse accommodation Investment income 2 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 £ 300 277,440 21,183 298,923 381,161 320 381,481 40,396 (42,162) 1,792,176 1,750,014	Restricted fund £ - - - - - - - - - - -	Endowment fund £ - - - - - - - 4,837 4,837 225,792 230,629	2023 Total funds £ 300 277,440 21,183 298,923 381,161 320 381,481 45,233 (37,325) 2,017,968 1,980,643	2022 Total funds £ 930 263,778 21,974 286,682 405,575 490 406,065 (70,386) (189,769) 2,207,737 2,017,968

The notes form part of these financial statements

Page 5

LANCASTER CHARITY

BALANCE SHEET 31 DECEMBER 2023

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 £ 1,249,127 427,225 1,676,352 2,783 99,528 102,311 (28,649) 73,662 1,750,014 1,750,014	Restricted fund £ - - - - - - - - - -	Endowment fund £ - 230,629 230,629 - - - - - 230,629 230,629	2023 Total funds £ 1,249,127 657,854 1,906,981 2,783 99,528 102,311 (28,649) 73,662 1,980,643 1,980,643 1,750,014 230,629 1,980,643	2022 Total funds £ 1,249,639 712,622 1,962,261 2,438 74,687 77,125 (21,418) 55,707 2,017,968 2,017,968 1,792,176 225,792 2,017,968

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

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023

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

Fixed asset investment income Charitable activities costs Provision of Almhouse accommodation Relief of aged persons Direct costs of charitable activities Staff costs Rates and water Insurance Light and heat Telephone Website Repairs and maintenance Gardening Payments to named pensioners Christmas party Extraordinary repairs	Direct Costs (see note 4) £ 370,729 320 371,049	2023 £ 21,183 Support costs (see note 5) £ 10,432 - 10,432 2023 £ 61,360 11,121 7,897 59,210 2,673 86 93,498 3,615 320 1,329 129,940 371,049	2022 £ 21,974 Totals £ 381,161 320	2022 £ 21,974
			381,481
			2022 £ 51,246 9,541 7,433 62,593 2,395 86 49,479 4,396 490 1,664 208,103
			397,426

3. Charitable activities costs

4. Direct costs of charitable activities

Page 8

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

5. Support costs

Support costs
Provision of Almhouse accommodation Support costs, included in the above, are as follows:	Governance Finance costs £ £ 522 9,910	Totals £ 10,432

Governance costs

Governance costs
	2023	2022
	Provision
	of
	Almhouse	Total
	accommodation	activities
	£	£
Wages	1,720	1,640
Postage, travel and sundries	2,913	1,799
Independent examiner fees	3,118	2,816
Trade subscriptions	781	839
Depreciation of tangible fixed assets	1,378	1,545
	9,910	8,639

6. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

7. Staff costs

Wages and salaries The average monthly number of employees during the year was as follows: Charitable activities Governance	2023 £ 63,080 63,080 2023 4 1 5	2022 £ 52,886
		52,886
		2022 4 1 5

No employees received emoluments in excess of £60,000.

Page 9

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

8. Comparatives for the statement of financial activities Unrestricted funds £ Income and endowments from Donations and legacies 130 Charitable activities Provision of Almhouse accommodation 263,778 Investment income 21,974 Total 285,882 Expenditure on Charitable activities Provision of Almhouse accommodation 404,775 Relief of aged persons 490 Total 405,265 Net gains/(losses) on investments (56,003) NET INCOME/(EXPENDITURE) (175,386) Reconciliation of funds Total funds brought forward 1,967,562 Total funds carried forward 1,792,176	Restricted fund £ 800 - - 800 800 - 800 - - - -	Endowment fund £ - - - - - - - (14,383) (14,383) 240,175 225,792	Total funds £ 930 263,778 21,974 286,682 405,575 490 406,065 (70,386) (189,769) 2,207,737 2,017,968

Page 10

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

9. Tangible fixed assets

Freehold property £ Cost At 1 January 2023 1,245,000 Additions - At 31 December 2023 1,245,000 Depreciation At 1 January 2023 - Charge for year - At 31 December 2023 - Net book value At 31 December 2023 1,245,000 At 31 December 2022 1,245,000 Fixed asset investments Market value At 1 January 2023 Additions Disposals Revaluations At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 There were no investment assets outside the UK. Cost or valuation at 31 December 2023 is represented by: Valuation in 2021 Valuation in 2022 Valuation in 2023 Cost	Fixtures and fittings £ 57,640 116 57,756 53,730 1,007 54,737 3,019 3,910	Computer equipment £ 2,235 750 2,985 1,506 371 1,877 1,108 729	Totals £ 1,304,875 866 1,305,741 55,236 1,378 56,614 1,249,127 1,249,639 Listed investments £ 712,622 99,998 (202,626) 47,860 657,854 657,854 712,622 Listed investments £ 753,207 (141,453) (24,781) 70,881 657,854

10. Fixed asset investments

Page 11

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

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 Extraordinary Repair Designated fund Endowment funds Permanent endowment TOTAL FUNDS Net movement in funds, included in the above are as Unrestricted funds General fund Extraordinary Repair Designated fund Endowment funds Permanent endowment TOTAL FUNDS	follows: Incoming resources £ 298,923 - 298,923 - 298,923	At 1/1/23 £ 1,751,426 40,750 1,792,176 225,792 2,017,968 Resources expended £ (381,481) - (381,481) - (381,481)		2023 £ 2,783 2023 £ 28,649 Net movement in funds £ (44,692) 2,530 (42,162) 4,837 (37,325) Gains and losses £ 37,866 2,530 40,396 4,837 45,233	2022 £ 2,438 2022 £ 21,418 At 31/12/23 £ 1,706,734 43,280 1,750,014 230,629 1,980,643 Movement in funds £ (44,692) 2,530 (42,162) 4,837 (37,325)

Page 12

LANCASTER CHARITY

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

13. Movement in funds - continued

Comparatives for movement in funds

Unrestricted funds General fund Extraordinary Repair Designated fund Endowment funds Permanent endowment TOTAL FUNDS	At 1/1/22 £ 1,835,654 131,908 1,967,562 240,175 2,207,737	Net movement in funds £ (84,228) (91,158) (175,386) (14,383) (189,769)	At 31/12/22 £ 1,751,426 40,750
			1,792,176 225,792
			2,017,968

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund Extraordinary Repair Designated fund Restricted funds Restricted fund Endowment funds Permanent endowment TOTAL FUNDS	Incoming resources £ 285,882 - 285,882 800 - 286,682	Resources expended £ (315,265) (90,000) (405,265) (800) - (406,065)	Gains and Movement losses in funds £ £ (54,845) (84,228) (1,158) (91,158) (56,003) (175,386) - - (14,383) (14,383) (70,386) (189,769)	Gains and Movement losses in funds £ £ (54,845) (84,228) (1,158) (91,158) (56,003) (175,386) - - (14,383) (14,383) (70,386) (189,769)
				(175,386) - (14,383)
				(189,769)

14. Related party disclosures

There were no related party transactions for the year ended 31 December 2023.

Page 13

LANCASTER CHARITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Income and endowments Donations and legacies Donations Investment income Fixed asset investment income Charitable activities Maintenance contributions Rents and wayleaves Cold weather payments Total incoming resources Expenditure Charitable activities Wages Rates and water Insurance Light and heat Telephone Website Repairs and maintenance Gardening Payments to named pensioners Christmas party Extraordinary repairs Support costs Finance Bank charges Governance costs Wages Postage, travel and sundries Independent examiner fees Trade subscriptions Fixtures and fittings Computer equipment	2023 £ 300 21,183 270,238 22 7,180 277,440 298,923 61,360 11,121 7,897 59,210 2,673 86 93,498 3,615 320 1,329 129,940 371,049 522 1,720 2,913 3,118 781 1,007 371 9,910	2022 £ 930 21,974 258,486 2 5,290
		263,778
		286,682 51,246 9,541 7,433 62,593 2,395 86 49,479 4,396 490 1,664 208,103
		397,426 - 1,640 1,799 2,816 839 1,303 242
		8,639

This page does not form part of the statutory financial statements

Page 14

LANCASTER CHARITY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Total resources expended Net expenditure before gains and losses Realised recognised gains and losses Realised gains/(losses) on fixed asset investments Net expenditure	2023 £ 381,481 (82,558) (2,627) (85,185)	2022 £ 406,065 (119,383) (1,480) (120,863)

This page does not form part of the statutory financial statements

Page 15