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2020-12-31-accounts

Charity number: 213463

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE CUTBUSH & CORRALL CHARITY

CONTENTS
Page
Reference and administrative details of the Charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 9
Independent auditors' 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 - 38

THE CUTBUSH & CORRALL CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees Mr W L Cockcroft DL (co-opted)
Mrs S R Darbyshire (co-opted)
Miss C E Highwood, Chairman (co-opted)
Mr S Morris (co-opted), Vice Chairman (co-opted)
Mr R L F Silkin (co-opted)
Mr G Proud (co-opted)
Mrs E Haggart (co-opted on 15 October 2020)
Mr C English (nomination expired August 2020 but renominated in February 2021)
Mrs D Joy (nominated)
Miss D Smith (nominated but resigned on 30 October 2020 and co-opted on 21
January 2021)
Charity registered
number
213463
Principal office
College Farm
College Avenue
Maidstone
Kent
ME15 6YJ
Independent auditors
MHA MacIntyre Hudson
Chartered Accountants
Victoria Court
17-21 Ashford Road
Maidstone
Kent
ME14 5DA
Bankers
National Westminster Bank plc
3 High Street
Maidstone
Kent
ME14 1XU
Solicitors
Brachers LLP
Somerfield House
59 London Road
Maidstone
Kent
ME16 8JH

Page 1

THE CUTBUSH & CORRALL CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Advisors Canaccord Genuity Wealth Management
41 Lothbury
London
EC2R 7AE
Property Advisors J A Warner Ltd
The Guard House, Church Lane
The Historic Dockyard
Chatham
Kent
ME4 4TE
Clerk and Chief Officer Mrs E Abi-Aad
Finance Officer Mrs N Weal

Page 2

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and the financial statements for the year ended 31 December 2020. The Trustees' have adopted the provisions of the 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 (FRS102) (effective January 2015) in preparing the Trustees' Report and financial statements of the Charity.

Objectives and activities

a. Objectives and Activities

The Charity's objectives as set out in the governing document are:

To provide almshouses for the use of persons in need by reason of age, ill health, disability, financial hardship or other disadvantage of not less than fifty years of age, most of whom are inhabitants of the Borough of Maidstone, and in the case of the Harrietsham almshouses, of not less than sixty years of age who are resident in Harrietsham, six of the beneficiaries being Freemen of the Fishmongers Livery Company;

To assist young persons under the age of twenty four years in need of financial assistance who are preparing for, entering upon or engaged in any trade, occupation or profession by provision of tools or books, payment of fees, travelling expenses or other such means as will fit them to earn their own living or advance them in life.

Such charitable purposes for the benefit of the almshouse residents as the trustees decide.

The Charity's aims are:

The relief of poverty by the provision of almshouse accommodation for the beneficiaries and such charitable purposes for the benefit of the residents as the Trustees decide.

To maintain the almshouses in good repair and condition and updated where necessary to be in line with modern day expectations.

To acquire more land upon which there would or could be erected more almshouses to be constructed to as high a standard as the Trustees consider financially prudent.

To maximise development or redevelopment opportunities as the Trustees consider financially prudent.

Wherever possible to maintain and increase the underlying value of the Charity's non-almshouse properties and assets consistent with appropriate professional advice.

b. Activities undertaken to achieve objectives

The first aim stated above is achieved through the structure of the Charity as detailed in the "Organisational Structure and decision-making policies" section below.

The second aim is achieved through the attention given by the management team of the Charity to the maintenance of the almshouses and upgrading them wherever possible. The process includes implementing the recommendations of the Charity's quinquennial report and further, when a property becomes empty, replacing the bathroom and kitchen and heating system where appropriate.

The third and fourth aims are achieved by the vigilance of the management team of the Charity in identifying new potential sites for development.

Page 3

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and activities (continued)

c. Main activities undertaken to further the Charity's purposes for the public benefit

The Trustees have paid due regard to the guidance on public benefit published by the Charity Commission when reviewing the aims and objectives of the charity and in planning future activities.

The Trustees believe that the activities undertaken in the year for achieving the objectives of the Charity have met the public benefit requirement.

Achievements and performance

a. Main achievements of the Charity

Whilst much overused, the term ‘unprecedented’ aptly describes 2020 in terms of the way the Charity operated during the global pandemic. Throughout the crisis, the Charity followed Government Guidance in order to keep staff and residents as safe as possible. Until COVID secure arrangements were in place the majority of staff worked from home, taking time to keep in regular touch with every resident, making sure they were coping practically and emotionally.

Staff gradually, returned to the workplace and have maintained a visible presence within the almshouse community, visiting various sites on a regular basis (meeting and greeting residents on their doorstep in a socially distant way). Residents were reassured to know that staff were always on hand if and when needed. Throughout the period all social activities were cancelled and it is only now as restrictions ease that plans are being made to re-introduce social gatherings safely.

Given the pause in activity – the decision was made not to recruit to two part-time vacancies within the Care & Support team and these posts remained unfilled until April 2021.

The maintenance team continued to undertake essential repairs (like heating, lighting and leaks) so that resident’s health and safety was not compromised. However, all non-essential maintenance tasks were paused in order to reduce the risk of transmission amongst the Charity’s vulnerable community.

The maintenance team continued to work hard and efficiently to ensure the length of time properties were empty was minimised (achieving an average nine week turn around). This resulted in a void rate (excluding 14, 16 & 24 College Road empty and awaiting conversion) of 1% (compared to 1% in 2019 and 2% in 2018). In total there was movement in and out of twelve properties.

There were opportunities too, Trustees moved swiftly to using tele-conferencing technology thereby ensuring the business of the Board was attended to in a timely way. All Board and Sub-Committee meetings were held virtually. A new, secure database that can be accessed remotely by staff was developed and populated providing up-to-date, easily accessible information about residents and the support they receive from the Charity’s staff. Remote access to electronic files was enabled via a secure, cloud-based server and electronic signature software is now used to authorise payments, contracts etc.

Page 4

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

The first Resident Satisfaction survey was undertaken in August 2020 with the vast majority (75% plus) of residents reporting high levels of satisfaction in terms of:

When it became apparent that the six ragstone houses on the College Road site were not fit for purpose (being uneconomic in terms of heating costs especially for single people), Trustees agreed that priority for developing new almshouses should shift from the Harrietsham site to exploring the possibility of converting six relatively large houses into 12 one-bedroomed flats. Planning permission for this development will be sought in 2021 – in the meantime three houses will remain unoccupied in readiness for building work to begin at the earliest opportunity.

Following much bureaucratic dealing, the Borough Council agreed to reduce the number of nominations they make to the Board and a long-standing Trustee vacancy was filled when Liz Haggart was co-opted as a Trustee on 15 October 2020 and the make-up of the Board made complete.

Trustees reviewed car parking on various sites in December agreeing that the management arrangements (contracted out) had worked well and should be maintained.

The Trustees would like to place formally on record their gratitude to the Clerk and Chief Officer, and all the other staff, for their magnificent response to the challenging and difficult circumstances of the year.

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. The economic impact of COVID-19 has been considered as part of the going concern assessment.

b. Permanent Endowment Funds

A Permanent Endowment Fund is held on trust to be retained for the benefit of the Charity as a capital fund, and is therefore held as investments and tangible fixed assets. During the year, net losses on investments amounting to £237,786 (2019 gains of £220,780) were recognised in the fund. A transfer from the accumulated income fund to the permanent endowment fund amounting to £6,083 (2019: £6,083) was made in respect of the Recoupment Order made by the Charities Commission on 13 May 1993.

Page 5

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

c. Financial review

It is the general policy of the Trustees to make sure that the level of weekly maintenance contributions meets the costs of running the Charity as identified in the Statement of Financial Activities. In 2020 the weekly maintenance contributions amounted to £674,037 (2019: £666,477) and the cost of running the Charity was £668,113 (2019: £701,478). In general terms the Trustees' policy was successful. The net deficit for the year after adjusting for gains and losses on investments amounted to £1,994 (2019: net surplus £546,482).

The Accumulated Income Fund is an unrestricted fund made up of accumulated surpluses of income and expenditure. The Charity aims to hold approximately 6 months of expenditure as cash and / or easily accessible reserves in this fund. Cash reserves held at the year end exceeded this amount.

Total reserves at the year end amounted to £12,010,441 (2019: £12,012,435), of which £2,246,792 (2019: £2,478,495) were held as restricted permanent endowment funds, £1,588,395 (2019: £1,588,395) held as restricted funds and £1,746,619 (2019: £1,350,379) held as designated funds. The charity has continued to make further investments to provide for future extraordinary repair, improvement or rebuilding of the homes and properties belonging to the Charity and also as part of a Recoupment Order made by the Charities Commission as detailed in note 2.13 to the accounts. The Trustees take advice from their investment advisers, Canaccord Genuity Wealth Management in making these investments.

In accordance with the Trustees wishes the Charity’s broker (Canaccord Genuity Wealth Management) has been instructed to aim to maintain a 40:60 split of the permanent endowment fund between property and other types of investments.

The investments held as fixed assets have produced an income of £104,904 (2019: £115,062) for the year and there was a net decrease in their market value of £188,288 (2019: increase £459,715) after taking into account the additions and disposals in the year.

d. Funds held as custodian trustee on behalf of others

The Charity does not hold any assets as custodian for any third parties.

e. Fundraising standards information

The Charity does not undertake any fundraising activities itself, nor does any other person on behalf of the charity. Neither the Charity or any other person acting on behalf of the Charity was subject to any voluntary scheme or voluntary standard for regulating fundraising. As such, there were no failures to comply with any such scheme and the Charity did not receive any complaints during the year in relation to fundraising activities.

Structure, governance and management

a. Constitution

The Cutbush and Corrall Charity is a charity registered by the Charity Commission and governed by the Scheme dated 15 November 2010. It is an unincorporated association.

Page 6

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

There are ten Trustees when the Board is complete. During 2020 there was a transition from six to eight cooptative Trustees whose term of office endures for five years. They are voted onto the Board by a simple majority of votes cast by the existing Trustees at a special meeting of the Trustees. The remaining two Trustees are nominative Trustees whose term of office endures for four years and who are appointed by Maidstone Borough Council. The Trustees holding office during the year are detailed on page 1. Candidature for a co-optative Trustee is formulated following a skills audit undertaken by the Trustees.

c. Organisational structure and decision-making policies

The Trustees meet four times a year as well as at any special meeting convened. Some Trustees' duties are delegated to sub-committees comprising usually four Trustees and the Clerk and Chief Officer. Any such subcommittee reports to the Main Board for their actions and decisions to be noted or sanctioned, as the case may be. Such sub-committees may deal with issues such as the selection of residents and any decisions regarding buildings.

The Clerk and Chief Officer is responsible for the implementation of the Trustees' decisions and has overall responsibility for the management of the Charity. The Clerk and Chief Officer is supported by three senior managers (Finance and Office Manager, Care and Support Manager and Maintenance Supervisor) and a small team of support staff. The Clerk and Chief Officer has authority to take decisions herself relating to day to day management items but is always accountable for any such decisions to the Trustees.

d. Policies adopted for the induction and training of Trustees

All new Trustees are given an induction pack by the Clerk and Chief Officer to include a copy of the Charity Commission Schemes, previous year's Accounts, Minutes of the last Trustees Meeting and a Residents Handbook. The responsibilities of a Charity Trustee are also explained by the Clerk and Chief Officer. In addition the Clerk and Chief Officer ensures that the new Trustee is familiarised (in general terms) with the housing stock and the day to day workings of the Charity.

The Trustees are offered the opportunity of training at the seminars organised for this purpose by the Almshouse Association.

e. Pay policy for key management personnel

The salaries of the key management personnel are set by the Trustees at the Trustees' meetings having regard to their responsibilities and levels of inflation.

f. Related party relationships

There are no related parties, other connected charities or organisations that the Charity is required to cooperate with in pursuit of its charitable objectives.

g. Risk management

Major risks to which the charity is exposed as identified by the Trustees are reviewed on a regular basis and systems or procedures are in place to manage those risks.

Page 7

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Plans for future periods

Thankfully, there have been no known COVID cases within the staff team or amongst residents, however the year in lockdown has been challenging and the longer-term impact on individuals’ mental well-being and the management of existing and new health conditions is yet to be understood. As restrictions ease, the Charity’s Care & Support team will focus on re-engaging the community especially those individuals who have been most isolated.

Toward the end of 2020, Trustees met to consider Terms of Reference for a new Finance Sub-Committee having realised that additional, dedicated time is required to attend to finance matters especially as the Charity seeks to develop more almshouses. The purpose of the Sub-Committees is to advise the Board of Trustees on its duty to oversee the Charity’s financial affairs.

The review of weekly maintenance charges started in 2019 will continue so that Trustees can be assured that the correct level of income is generated to allow the Charity to continue to achieve its aims & objectives.

Subject to consent, there are plans in place to convert six houses on the College Road site into 12 one bedroomed flats (increasing the number of almshouses from 148 to 154) and better meeting the needs of the Charity’s beneficiaries who have struggled to cover the cost of heating these particular properties. The Charity is keen to ensure that all its almshouses are as energy efficient as possible and hopes to access funding through the Government’s Green Homes Grant to meet the cost of installing air source heat pumps in nine almshouses on the College Walk and Mote Road sites.

Demand for the secure, affordable accommodation that the Charity provides continues to outstrip supply. At the beginning of the year there were four vacant almshouses and nine applicants approved by the Board of Trustees plus eight existing beneficiaries (seeking a transfer to more suitable accommodation); the needs of each must be considered before any almshouse that is ready for occupation is allocated. This year the Resident Sub-Committee intends to consider ways in which the Charity can promote its’ work with a view to attracting interest from individuals who are likely to gain the most benefit from living in the almshouse community.

Page 8

THE CUTBUSH & CORRALL CHARITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Charity Commission Scheme. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, MHA MacIntyre Hudson, have indicated their willingness to continue in office. A resolution to reappoint the Auditors will be put to the Trustees at the Annual General Meeting.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Caroline (Jul 29, 2021, 4:18pm) Miss C E Highwood Chairman of Trustees

Date: 29 Jul 2021

Page 9

THE CUTBUSH & CORRALL CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CUTBUSH & CORRALL CHARITY

Opinion

We have audited the financial statements of The Cutbush & Corrall Charity (the 'charity') for the year ended 31 December 2020 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).

In our opinion the financial statements:

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 Auditors' 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

THE CUTBUSH & CORRALL CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CUTBUSH & CORRALL CHARITY (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the 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

THE CUTBUSH & CORRALL CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CUTBUSH & CORRALL CHARITY (CONTINUED)

Auditors' 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 Auditors' 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:

Reviewing minutes of meetings of those charged with governance;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

• Enquiry of management, those charged with governance around actual and potential litigation and claims.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 12

THE CUTBUSH & CORRALL CHARITY

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CUTBUSH & CORRALL CHARITY (CONTINUED)

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 Auditors' 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.

MHA MacIntyre Hudson

Chartered Accountants Statutory Auditors Victoria Court 17-21 Ashford Road Maidstone Kent ME14 5DA

Date: 16 August 2021

MHA MacIntyre Hudson are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 13

THE CUTBUSH & CORRALL CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income and
endowments from:
Donations and
legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income and
endowments
Expenditure
Expenditure on:
8
Raising funds
. Charitable activities
Total expenditure
8
Net income before
net gains/(losses) on
investments
Net gains/(losses) on
investments
14,15
Net income/
(expenditure)
Transfers between
funds
19
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in
funds
Total funds carried
forward		 Unrestricted
funds
2020
£
-
674,176
105,642
1,953
781,771
2,821
665,292
668,113
113,658
122,134
235,792
(6,083)
229,709
7,945,545
229,709
8,175,254		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
1,588,395
-
1,588,395		 Endowment
funds
2020
£
-
-
-
-
-
-
-
-
-
(237,786)
(237,786)
6,083
(231,703)
2,478,495
(231,703)
2,246,792		 Total
funds
2020
£
-
674,176
105,642
1,953
781,771
2,821
665,292
668,113
113,658
(115,652)
(1,994)
-
(1,994)
12,012,435
(1,994)
12,010,441		 Total
funds
2019
£
1,000
668,830
117,205
1,210
788,245
6,922
694,556
701,478
86,767
459,715
546,482
-
546,482
11,465,953
546,482
12,012,435

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 38 form part of these financial statements.

Page 14

THE CUTBUSH & CORRALL CHARITY

BALANCE SHEET AS AT 31 DECEMBER 2020

2020 2020 2019
Note £ £
Fixed assets
Tangible assets 13 7,620,704 7,698,085
Investments 15 3,752,046 3,810,334
Investment property 14 - 60,000
11,372,750 11,568,419
Current assets
Debtors 16 28,289 24,692
Cash at bank and in hand 23 640,947 446,239
669,236 470,931
Creditors: amounts falling due within one
year 17 (31,545) (26,915)
Net current assets 637,691 444,016
Total net assets 12,010,441 12,012,435
Charity funds
Endowment funds 19 2,246,792 2,478,495
Restricted funds 19 1,588,395 1,588,395
Unrestricted funds
Designated funds 19 1,746,619 1,350,379
General funds 19 6,428,635 6,595,166
Total unrestricted funds 19 8,175,254 7,945,545
Total funds 12,010,441 12,012,435

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

S.Morris ~~.............................................~~ Caroline (Jul 29, 2021, 4:18pm) ... ................................................ Stephen (Jul 29, 2021, 7:26pm) Miss C E Highwood Mr S Morris Trustee Trustee Date: 29 Jul 2021 29 Jul 2021

The notes on pages 17 to 38 form part of these financial statements.

Page 15

THE CUTBUSH & CORRALL CHARITY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Cash flows from operating activities
Net cash used in operating activities
22
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Net cash provided by financing 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
23
The notes on pages 17 to 38 form part of these financial statements		 2020
£
100,305
105,813
(14,046)
132,636
(130,000)
94,403
-
194,708
446,239
640,947		 2019
£
78,454
124,817
-
-
(5,879)
118,938
-
197,392
248,847
446,239

Page 16

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

The charity is a charity registered by the Charity Commission in England and Wales and governed by the Scheme dated 15 November 2010. The registered address is given on the administrative details page of these financial statements. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

Compliance with Accounting Standards

The financial statements have been prepared in accordance with 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 (FRS102) (effective January 2015) - (Charities SORP FRS102) (as updated through Update Bulletin 1 published on 2 February 2016 and Update Bulletin 2 published on 5 October 2018), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011 and applicable regulations. There were no material departures from those standards.

2. Accounting policies

2.1 Basis of preparation of financial statements

The Cutbush and Corrall Charity (incorporating the Quested Almshouse Charity) meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historic cost unless otherwise stated in the relevant accounting policy note. The financial statements are prepared on a going concern basis and there are no material uncertainties that cast significant doubt on the charity's ability to continue as a going concern. The Trustees have considered the impact of Covid-19 as part of their going concern assessment.

Page 17

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.2 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and that the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donations are recognised in the period in which they are received, unless there are conditions that have not been met before the charity is entitled to the resource.

Weekly maintenance contributions, rents receivable and deposit interest are included in the financial statements based on the period for which they are due.

Income from investments in the form of dividends and interest is included in the financial statements when declared.

Income from government and other grants, whether capital or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be reliably measured and is not deferred.

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.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprises the costs relating to the investment properties and investments.

Expenditure on charitable activities includes the costs of running and maintaining the almshouses and providing services and benefits to the residents.

2.4 Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between the cost of raising funds and expenditure on charitable activities.

Page 18

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

The almshouses and other properties are included at their depreciated cost in the balance sheet each year. The period over which each of the properties is depreciated varies from 75 years to 300 years depending on the age and condition of the properties concerned.

The costs of Almshouses for which depreciation is calculated includes the value of land. This is a departure from UK GAAP and the Charities SORP (FRS 102) which requires the value of land to be removed for depreciation calculations due to its high residual value. The Trustees are of the view that this accurately reflects the nature of assets because it is unlikely the almshouses will ever be sold.

The computer equipment is stated at cost less depreciation. Depreciation is provided at 20% on a straight line basis to write off the cost of fixed assets over their expected useful lives.

2.7 Investments

Investments are valued at fair value at 31 December each year, and realised and unrealised gains or losses are shown in the Statement of Financial Activities.

2.8 Investment properties

Investment properties are valued at their fair value at the balance sheet date.

2.9 Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

2.10 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.

2.11 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 19

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.12 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.

2.13 Recoupment Order

The Charity is subject to a Recoupment Order made by the Charities Commission on 13 May 1993 in respect of payments out of the permanent endowment expended on Phase 11, Cutbush & Corrall Court. Payment of up to £555,000 was permitted, but it has been agreed with the Charity Commissioners that only £365,000 has been used. The recoupment period is 60 years and therefore, £6,083.33 per annum has been set aside and invested in shares each year. The income arising from these investments will not form part of the permanent endowment itself, but can be expended by the charity as General Fund income.

2.14 Pensions

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

2.15 Fund accounting

The Accumulated Income Fund comprises unrestricted funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

The Extraordinary Repair Fund and the Development Fund are designated funds, set aside by the Trustees out of unrestricted general funds for specific future purposes.

The Restricted Grant Income Fund represents grant monies received from the Homes and Communities Agency towards the building costs of the new almshouses at Huntsmans Cottage and the renovation of the almshouses at Harrietsham and St Faith's Street. The charity has undertaken to continually provide services in accordance with the Standards of Almshouse Management and the grants are repayable if the conditions are not met.

The Permanent Endowment Fund is a restricted fund held on trust to be retained for the benefit of the Charity as a capital fund.

The income from assets held in all of the above funds forms part of the unrestricted funds.

Further explanation of the nature and purpose of the designated funds is included in the notes to the financial statements.

The Fair Value Reserve represents the unrealised gains on the investment property due to changes in the market value from the original cost.

Page 20

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Critical accounting estimates and areas of judgement

The following judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have the most significant effect on amounts recognised in the financial statements.

Critical accounting estimates and assumptions:

The estimated useful lives of the almshouses and other properties.

There are no futher key assumptions concerning the future or other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from donations and legacies

Legacies
Legacies		 Unrestricted
funds
2020
£
-
Unrestricted
funds
2019
£
1,000		 Total
funds
2020
£
-
Total
funds
2019
£
1,000

5. Income from charitable activities

Weekly maintenance contributions
Residents' Trips and Activities
Total 2020		 Unrestricted
funds
2020
£
674,037
139
674,176		 Total
funds
2020
£
674,037
139
674,176

Page 21

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. Income from charitable activities (continued)

Weekly maintenance contributions
Residents' Trips and Activities
Total 2019		 Unrestricted
funds
2019
£
666,477
2,353
668,830		 Total
funds
2019
£
666,477
2,353
668,830

6. Investment income

Unrestricted
funds
2020
£
Rent receivable - St Mary's Romney Marsh
300
Dividends and interest receivable
104,904
Deposit interest receivable
438
Total 2020
105,642
Unrestricted
funds
2019
£
Rent receivable - St Mary's Romney Marsh
1,200
Dividends and interest receivable
115,062
Deposit interest receivable
943
Total 2019
117,205		 Total
funds
2020
£
300
104,904
438
105,642
Total
funds
2019
£
1,200
115,062
943
117,205

Page 22

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Other incoming resources

HMRC interest
Government grants -apprenticeship grant
Room hire
Government grants - Coronavirus job retention scheme
Total 2020
HMRC interest
Government grants -apprenticeship grant
Room hire
Other income
Total 2019		 Unrestricted
funds
2020
£
3
1,000
35
915
1,953
Unrestricted
funds
2019
£
56
500
172
482
1,210		 Total
funds
2020
£
3
1,000
35
915
1,953
Total
funds
2019
£
56
500
172
482
1,210

8. Analysis of expenditure

Charitable activities
Raising funds
Total 2020		 Activities
undertaken
directly
2020
£
553,286
-
553,286		 Support
costs
2020
£
112,006
2,821
114,827		 Total
funds
2020
£
665,292
2,821
668,113

Page 23

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Analysis of expenditure (continued)

Charitable activities
Raising funds
Total 2019
Analysis of direct costs
Staff costs
Christmas Bounties to individuals
Water, light, heat and insurance
Repairs and improvements
Gardening
Professional Fees
Sundries
Residents' trips/activities/discretionary payments
Telephone
Rates re. Empty Properties
Motor running expenses
Depreciation Charge
Bank Charges
Total 2020		 Activities
undertaken
directly
2019
£
601,486
700
602,186
Charitable
activities
2020
£
113,691
6,800
68,433
181,367
41,916
31,944
3,912
1,398
2,527
2,958
7,343
89,335
1,662
553,286		 Support
costs
2019
£
93,070
6,222
99,292
Raising
funds
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
2019
£
694,556
6,922
701,478
Total
funds
2020
£
113,691
6,800
68,433
181,367
41,916
31,944
3,912
1,398
2,527
2,958
7,343
89,335
1,662
553,286

Page 24

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Analysis of expenditure (continued)

Analysis of direct costs (continued)

Staff costs
Christmas Bounties to individuals
Water, light, heat and insurance
Repairs and improvements
Gardening
Professional Fees
Sundries
Garden Party expenses
Christmas Party Expenses
Residents' trips/activities/discretionary payments
Telephone
Rates re. Empty Properties
Motor running expenses
Legal fees
Depreciation
Bank charges
Advertising
Total 2019		 Charitable
Activities
2019
£
123,630
7,200
66,045
246,262
30,077
14,973
3,638
3,868
2,148
2,084
1,789
172
5,060
2,400
89,321
1,811
1,008
601,486		 Raising
funds
2019
£
-
-
-
-
-
700
-
-
-
-
-
-
-
-
-
-
-
700		 Total
funds
2019
£
123,630
7,200
66,045
246,262
30,077
15,673
3,638
3,868
2,148
2,084
1,789
172
5,060
2,400
89,321
1,811
1,008
602,186

Page 25

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Analysis of expenditure (continued)

Analysis of support costs

Staff costs (by estimated time spent)
Water, light, heat and insurance (by estimated usage)
Repairs and improvements (by estimated usage)
Professional Fees (by estimated time spent)
Sundries (by estimated usage)
Telephone (by estimated usage)
Insurance (by estimated usage)
Staff training (by nature of training)
Depreciation (by estimated usage)
Computer expenses (by estimated usage)
Governance costs (see below)
Total 2020
Staff costs (by estimated time spent)
Water, light, heat and insurance (by estimated usage)
Repairs and improvements (by estimated usage)
Professional Fees (by estimated time spent)
Sundries (by estimated usage)
Telephone (by estimated usage)
Insurance (by estimated usage)
Staff training (by nature of training)
Depreciation (by estimated usage)
Computer expenses (by estimated usage)
Governance costs (see below)
Total 2019		 Charitable
activities
2020
£
73,112
3,050
3,573
751
6,618
3,015
86
320
2,071
4,347
15,063
112,006
Charitable
activities
2019
£
56,803
1,617
5,847
432
1,558
4,968
158
4,429
1,667
2,524
13,067
93,070		 Raising
funds
2020
£
645
31
36
40
348
30
1
-
21
44
1,625
2,821
Raising
funds
2019
£
2,599
16
59
288
1,582
50
18
-
17
26
1,567
6,222		 Total
funds
2020
£
73,757
3,081
3,609
791
6,966
3,045
87
320
2,092
4,391
16,688
114,827
Total
funds
2019
£
59,402
1,633
5,906
720
3,140
5,018
176
4,429
1,684
2,550
14,634
99,292

Page 26

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Governance costs

Auditors' remuneration - statutory audit services (by
estimated time spent)
Auditors' remuneration - other services (by estimated time
spent)
Trustee' indemnity insurance (by estimated usage)
Total 2020
Auditors' remuneration - statutory audit services (by
estimated time spent)
Auditors' remuneration - other services (by estimated time
spent)
Trustee' indemnity insurance (by estimated usage)
Total 2019		 Charitable
activities
2020
£
6,217
8,362
484
15,063
Charitable
activities
2019
£
6,147
6,559
361
13,067		 Raising
funds
2020
£
691
929
5
1,625
Raising
funds
2019
£
683
729
155
1,567		 Total
funds
2020
£
6,908
9,291
489
16,688
Total
funds
2019
£
6,830
7,288
516
14,634

10. Auditors' remuneration

2020 2019
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 6,908 6,830
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - accounts preparation, tax
compliance and general advice 9,291 7,288

Page 27

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
168,903
10,799
7,746
187,448		 2019
£
164,351
10,834
7,847
183,032

The average number of persons employed by the Charity during the year was as follows:

Charitable activities
Management and Administration of the Charity		 2020
No.
5
2
7		 2019
No.
6
2
8

No employee received remuneration amounting to more than £60,000 in either year.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the year ended 31 December 2020, no Trustee expenses have been reimbursed (2019 - £NIL) .

Page 28

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Tangible fixed assets

Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Freehold
Almshouses
£
8,901,128
12,006
8,913,134
1,394,323
89,335
1,483,658
7,429,476
7,506,805		 Freehold
Other
Property
£
208,295
-
208,295
18,744
1,041
19,785
188,510
189,551		 Computer
Equipment
£
3,214
2,040
5,254
1,485
1,051
2,536
2,718
1,729		 Total
£
9,112,637
14,046
9,126,683
1,414,552
91,427
1,505,979
7,620,704
7,698,085

14. Investment property

At 1 January 2020
Disposals
At 31 December 2020		 Investment
property
£
60,000
(60,000)
-

The fair value of the land at the start of the year was valued at the Trustees' best estimates available at the time of preparing the 2019 financial statements. The Trustees had agreed to sell the investment property for a price of £140,000 but exchange of contracts had not taken place at the date of signing off the 2019 financial statements. Due to uncertainty arising from the Covid-19 pandemic no gain was recognised in the 2019 accounts. The investment property was sold for the agreed price of £140,000 less costs in 2020 and the net gain on the sale was £72,636.

Page 29

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15. Fixed asset investments

Cost or valuation
At 1 January 2020
Additions
Revaluations
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
16.
Debtors
Due within one year
Other debtors
Prepayments and accrued income
17.
Creditors: Amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
13,866
14,423		 Listed
investments
£
3,810,334
130,000
(188,288)
3,752,046
3,752,046
3,810,334
2019
£
12,608
12,084
24,692
2019
£
1,417
1,086
24,412
26,915		 Listed
investments
£
3,810,334
130,000
(188,288)
3,752,046
3,752,046
3,810,334
2019
£
12,608
12,084
24,692
2019
£
1,417
1,086
24,412
26,915
28,289 24,692
2020
£
4,013
-
27,532		 2019
£
1,417
1,086
24,412
31,545 26,915

Page 30

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Financial instruments

2020 2019
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 3,752,046 3,870,334

Financial assets measured at fair value through income and expenditure comprise fixed asset investments valued at their fair value of £3,752,046 at the year end (2019 fixed asset investments valued at their fair value of £3,810,334 and investment property valued at the trustees' estimate of fair value of £60,000).

Page 31

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Extraordinary
repair fund
Development
fund
General funds
Accumulated
income fund
Fair value
reserve
Total
Unrestricted
funds
Endowment
funds
Permanent
endowment
Restricted
funds
Grant income
fund
Total of funds		 Balance at 1
January
2020
£
1,178,652
171,727
1,350,379
6,545,166
50,000
6,595,166
7,945,545
2,478,495
1,588,395
12,012,435		 Income
£
-
-
-
781,771
-
781,771
781,771
-
-
781,771		 Expenditure
£
-
-
-
(668,113)
-
(668,113)
(668,113)
-
-
(668,113)		 Transfers
in/out
£
-
319,576
319,576
(325,659)
-
(325,659)
(6,083)
6,083
-
-		 Gains/
(Losses)
£
65,625
11,039
76,664
95,470
(50,000)
45,470
122,134
(237,786)
-
(115,652)		 Balance at
31
December
2020
£
1,244,277
502,342
1,746,619
6,428,635
-
6,428,635
8,175,254
2,246,792
1,588,395
12,010,441

Page 32

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Statement of funds (continued) Statement of funds - prior year

Unrestricted
funds
Designated
funds
Extraordinary
repair fund
Development
fund
General funds
Accumulated
income fund
Fair value
reserve
Total
Unrestricted
funds
Endowment
funds
Permanent
endowment
Restricted
funds
Grant income
fund
Total of funds		 Balance at
1 January
2019
£
998,564
133,564
1,132,128
6,443,798
50,000
6,493,798
7,625,926
2,251,632
1,588,395
11,465,953		 Income
£
-
-
-
788,245
-
788,245
788,245
-
-
788,245		 Expenditure
£
-
-
-
(701,478)
-
(701,478)
(701,478)
-
-
(701,478)		 Transfers
in/out
£
-
38,163
38,163
(44,246)
-
(44,246)
(6,083)
6,083
-
-		 Gains/
(Losses)
£
180,088
-
180,088
58,847
-
58,847
238,935
220,780
-
459,715		 Balance at
31
December
2019
£
1,178,652
171,727
1,350,379
6,545,166
50,000
6,595,166
7,945,545
2,478,495
1,588,395
12,012,435

Page 33

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Endowment
funds
Restricted
funds		 Balance at 1
January
2020
£
1,350,379
6,595,166
2,478,495
1,588,395
12,012,435		 Income
£
-
781,771
-
-
781,771		 Expenditure
£
-
(668,113)
-
-
(668,113)		 Transfers
in/out
£
319,576
(325,659)
6,083
-
-		 Gains/
(Losses)
£
76,664
45,470
(237,786)
-
(115,652)		 Balance at
31
December
2020
£
1,746,619
6,428,635
2,246,792
1,588,395
12,010,441

Page 34

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Summary of funds (continued)

Summary of funds - prior year

Designated
funds
General funds
Endowment
funds
Restricted
funds		 Balance at
1 January
2019
£
1,132,128
6,493,798
2,251,632
1,588,395
11,465,953		 Income
£
-
788,245
-
-
788,245		 Expenditure
£
-
(701,478)
-
-
(701,478)		 Transfers
in/out
£
38,163
(44,246)
6,083
-
-		 Gains/
(Losses)
£
180,088
58,847
220,780
-
459,715		 Balance at
31
December
2019
£
1,350,379
6,595,166
2,478,495
1,588,395
12,012,435

The Extraordinary Repair Fund is maintained out of the income of the Charity for the purpose of providing for the extraordinary repair, improvement or rebuilding of the homes and other property belonging to the Charity. The Trustees have decided that the balance on this fund is to be held at approximately £1,000,000. An annual transfer is made to this fund from the accumulated income fund if the Trustees consider it necessary.

The Development Fund represents amounts set aside for future almshouse developments. £319,576 (2019: £38,163) has been transferred to this fund from the Accumulated Income Fund during the year, comprising £130,000 (2019: £nil) from the proceeds of the sale of the investment property during the year, and an additional amount of £189,576 (2019: £38,163) as agreed by the Trustees.

The Restricted Grant Income Fund represents grant monies received from the Homes and Communities Agency towards the building costs of the new almshouses at Huntsmans Cottage and the renovation of the almshouses at Harrietsham and St Faith's Street. The charity has undertaken to continually provide services in accordance with the Standards of Almshouse Management and the grants are repayable if the conditions are not met.

The Permanent Endowment Fund is a restricted fund held on trust to be retained for the benefit of the Charity as a capital fund. The annual transfer out of the Permanent Endowment Fund amounting to £6,083 (2019: £6,083) has been made in accordance with a Recoupment Order. See note 2.13 for more information.

The Fair Value Reserve represents the unrealised gains on investment properties due to changes in the fair value from the original cost.

Page 35

THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

21. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
5,831,559
Fixed asset investments
1,740,624
Current assets
634,616
Creditors due within one year
(31,545)
Total
8,175,254
Analysis of net assets between funds - prior period
Unrestricted
funds
2019
£
Tangible fixed assets
5,902,857
Fixed asset investments
1,561,126
Investment property
60,000
Current assets
448,477
Creditors due within one year
(26,915)
Total
7,945,545		 Restricted
funds
2020
£
1,588,395
-
-
-
1,588,395
Restricted
funds
2019
£
1,588,395
-
-
-
-
1,588,395		 Endowment
funds
2020
£
200,750
2,011,422
34,620
-
2,246,792
Endowment
funds
2019
£
206,833
2,249,208
-
22,454
-
2,478,495		 Total
funds
2020
£
7,620,704
3,752,046
669,236
(31,545)
12,010,441
Total
funds
2019
£
7,698,085
3,810,334
60,000
470,931
(26,915)
12,012,435
Analysis of net assets between funds - prior
Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total

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THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the period (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by operating activities
23.
Analysis of cash and cash equivalents
COIF Charities Deposit Fund
Bank Current Account
Cash in Hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
At 1
January
2020
£
Cash at bank and in hand
446,239
Debt due within 1 year
(1,086)
445,153		 2020
£
(1,994)
91,427
115,652
(105,642)
(3,768)
4,630
100,305
2020
£
167,032
472,959
956
640,947
Cash flows
£
194,708
1,086
195,794		 2019
£
546,482
91,005
(459,715)
(117,205)
17,560
327
78,454
2019
£
166,594
279,227
418
446,239
At 31
December
2020
£
640,947
-
640,947

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THE CUTBUSH & CORRALL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

25. Commitments

At 31 December 2020 the Charity had no capital commitments (2019: £Nil).

26. Pension commitments

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the year was £7,746 (2019: £7,847).

The defined contribution expense is allocated to unrestricted funds, of which £29 (2019: £116) has been allocated to raising funds and £7,717 (2019: £7,731) has been allocated to charitable activities on the basis of the time spent on each activity by staff members.

27. Related party transactions

During the year the Charity paid £1,930 (2019: £128) for cleaning services provided by M Brown, who is daughter of Mrs E Abi-Aad, the Charity's Chief Officer and Clerk. This arm's-lenth arrangement was subject to assessment and approval by the Trustees.

28. Post balance sheet events

Therre were no adjusting or non-adjusting events occurring between the year end and the date of approval of these accounts which require disclosure.

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