2024-03-31-accounts

Nottingham Community Almshouse Charity Financial statements for the year ended 31 March 2024

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Trustee, Advisors and Bankers

Contents

Contents
Trustee, Advisors and Bankers	3
Report of the Trustee	4
Report of the Independent Auditor to the Trustee	10
Statement of Financial Activities	16
Statement of Financial Position	18
Statement of Changes in Reserves	20
Statement of Cash Flows	22
Notes to the Financial Statements	24

The Nottingham Community Almshouse Charity is a registered Charity No. 214040 being an unincorporated association governed by a Charity Commission Scheme dated 31 March 2009.

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Nottingham Community Almshouse Charity

Trustee, Advisors and Bankers

Trustee

Nottingham Community Housing Association appointed in 1992 as the Sole Corporate Trustee.

Sylvia Hart BA (Hons) CPFA ACG Clerk to the Trustee

The directors of the Sole Corporate Trustee

Mr Callum Gillespie BSc (Hons) (NCHA Chair)

Mr Andrew Kilby FCCA (Audit and Risk Committee Chair)

Ms Leanne Monger MPA, BA (Hons) CIHCM (Audit and Risk Committee)

Ms Gill Callingham (Audit and Risk Committee)

Mr Mike Finister-Smith (Audit and Risk Committee. Resigned 31 March 2024) Mrs Janet Glass (Audit and Risk Committee. Appointed 20 September 2023) Mrs Sarah Battershall (Appointed 20 September 2023)

Mrs Natalie Robinson LL.B. (Hons), LL.M. LPC (Appointed 20 September 2023)

Mr David Harrison BA MCIH (resigned 18 September 2024)

Ms Lorelei Jarvis BSc (Hons)

Mr Paul Parkinson BA (Hons) Dip. RSA FCIH

Mr Mohammed Habib LLB (Hons) MA FCIH MCIOB

Registered Office

External Auditors

RSM UK Audit LLP 10th Floor, 103 Colmore Row, Birmingham, West Midlands, B3 3AG

12-14 Pelham Road Sherwood Rise Nottingham NG5 1AP

Solicitors

Freeths LLP Cumberland Court 80 Mount Street Nottingham NG1 6HH

Telephone [phone]

Facsimile 0115 910 4445

Bankers

Lloyds Bank plc PO Box 72 Bailey Drive Gillingham Kent ME8 0LS

Email [e-mail]

Report of the Trustee

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Nottingham Community Almshouse Charity

Objectives and activities

The Charity increased the number of housing properties owned on 28 March 2023 following the transfer of Blyth Cottages Charity from 148 to 160 units. No gross maintenance contributions receivable were generated from one property at William Woodsend Memorial Homes where the tenant was allowed to reside without making maintenance contributions. Gross maintenance contributions of £832,138 were generated (2023 - £688,678) at a weekly contribution of between £56.50 and £126.22 per property. Void losses of £20,362 (2023 - £22,389) were incurred during the year.

The objective of the Charity is to provide rented accommodation to necessitous persons. All activity is carried out in support of this objective.

Public benefit disclosure

The Charities Act 2011 identifies two key principles of public benefit namely there must be an identifiable benefit or benefits and the benefit must be to the public or to a section of the public.

The Trustee, in the aims and objectives of the Charity and in the oversight of the Charity’s operations, has had regard to and believes that it meets with the Charity Commission’s guidance on public benefit. The Trustee defines the public benefit of the Charity as being the provision of social rented accommodation to necessitous persons in the East Midlands.

Financial review

There was a surplus for the year of £219,325 (2023 - £230,974). The 2023 balance included a donation from Blyth Cottages Charity of £192,552.

Achievements and performance

The Statement of Financial Position of the Charity is strong...

Nottingham Community Almshouse Charity was formed on 1 April 2008 by combining Nottingham Almshouse Charity and six other individual charities into one charity. It has continued to add further charities over the intervening years: Ada Mary Best Homes; Lambley Almshouses; Henry Brown Homes; Julien Cahn Homes; Warner’s Almshouses; Harworth Miners Almshouses; Harworth Miners Bungalows; William Crane Trust; Nottingham Annuity Charity.

...with unrestricted general fund reserves of £3,338,615 (2023 - £3,119,290).

On 28 March 2023 the Charity Commission amended the scheme of Nottingham Community Almshouse Charity to incorporate Blyth Cottages Charity. This resulted in the acquisition of the assets and liabilities of Blyth Cottages Charity. No consideration was paid for the acquisition which resulted in a donation of £192k being received by NCAC last financial year.

More homes, great services, better lives

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Report of the Trustee

Statement of compliance

The Trustee confirms this Report of the Trustee has been prepared in accordance with the principles set out in 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 (FRS 102).

Identification and evaluation of key risks

The Trustee confirms that there is a long-term ongoing review process for identifying and managing significant risks faced by NCAC covering the period up to the annual report. Management responsibility has been clearly defined for the identification, evaluation and control of significant risks. There is a formal and ongoing process of management review in each area of NCAC’s activities. The Executive team regularly considers and receives reports on significant risks facing NCAC and the Chief Executive is responsible for reporting to the Trustee any significant changes affecting key risks. All Trustee reports include a section detailing the risks arising, or identified, from any information or recommendations included in the report.

In meeting its responsibilities, the Trustee has adopted a risk-based approach to internal controls which are embedded within the normal management and governance processes. This approach includes the regular evaluation of the nature and extent of risks to which the organisation is exposed. The Compliance and Risk Panel and our Trustee have continued to work together to assess the quantification of our risk appetite and have produced the following Risk Appetite statement:

The process adopted by the Trustee in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework, includes:

• The annual review of the Risk Management Strategy and Framework, and biannual review of strategic risk maps, is an ongoing process for identifying and managing significant risks faced by the organisation. This process has been in place throughout the year under review, up to the date of the Annual Report and Accounts, and is regularly reviewed by the Trustee.

• In addition, the Compliance and Risk Panel annually sets a plan to demonstrate to the Executive team, Audit and Risk Committee and Trustee how it intends to deliver its risk management objectives during the year.

• The NCHA Group and the NCAC Trustee approved a new Risk Management Framework in 2023, which replaced our existing risk management procedure and ensured that our risk management processes are consistent with the National Housing Code of Governance, which is adopted by NCAC. The Framework is reviewed annually and the NCHA Group’s risk management processes were also awarded ‘substantial assurance’ in May 2022 by the Group’s Internal Auditors.

The risk-based approach is consistent with best practice across the sector.

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Nottingham Community Almshouse Charity

NCAC strategic risks

Our strategic risk map, reviewed biannually by the Trustee, addresses the risks associated with the following objectives, as outlined within our Group Corporate Plan:

• Failure to comply with charity law, Charity Commission policies and procedures and the rules set out in the Charity’s governing document.

• Failure to remain viable by not meeting budgetary targets.

Nottingham Community Housing Association Limited (NCHA) is the Sole Corporate Trustee of the Charity.

Plans for future periods

In future periods the Charity intends to continue to provide current activities in support of the Charity’s objectives.

Post balance sheet events

We consider that there have been no events since the financial year end which have a material effect on the financial position of the Charity.

Structure, governance and management

The Charity is governed by a Charity Commission scheme.

Sylvia Hart is the Clerk to the Trustee. The day to day management and activities of the Charity are carried out by employees of NCHA.

Reserves policy

It is the policy of the Charity not to designate any of its reserves for any specific purpose, other than the required Social Housing Grant Reserve. Targets are set by the Trustee as part of the budgeting process. In the event of a shortfall the Trustee considers plans to make good where appropriate. Similarly, where an excess is achieved the Trustee considers plans on how best to utilise this.

The Charity Commission defines free reserves as total unrestricted funds less tangible fixed assets for charity use less amounts designated for essential future spending. On this basis the Charity has free reserves of £721,383 (2023 - £519,360).

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Report of the Trustee

Investments

Control of investments is placed with NCHA’s Director of Finance and Resources and Chief Executive. The value of investments will be dictated by the business cash flow requirements and proposed development plans. The exact amount of investments will vary from time to time and will be kept available to meet all liquidity requirements.

The Charity will maintain a list of institutions with whom it will invest.

The Director of Finance and Resources will liaise with external consultants to receive regular updates on the credit standing of the preferred list and will be authorised to add or remove firms as seen fit.

When significant funds are available to invest (typically greater than £5m) the Director of Finance and Resources will approach at least two of the preferred institutions to establish the best possible terms available. The funds will then be invested in accordance with the terms of this policy at the best rates available.

In exceptional circumstances, where the Charity is holding large cash balances, the Director of Finance and Resources will seek to increase the diversity of investment counterparties through the use of Public Debt Constant Net Asset Value and Low Volatility Net Asset Value Money Market Funds and Deposit Funds.

Investments held by the Trust are managed by M & G Securities Limited at PO Box 9038, Chelmsford, England CM99 2XF and CCLA Investment Management at Senator House, 85 Queen Victoria Street, London, EC4V 4ET.

Statement of Trustee’s responsibilities in respect of the accounts

The Trustee is responsible for preparing the Trustee’s Annual 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 and Wales requires the Trustee 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 the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustee is required to:

• Select suitable accounting policies and then apply them consistently.

• Observe the methods and principles in 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 (FRS 102).

• Make judgements and accounting estimates that are reasonable and prudent.

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

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Statement of Trustee’s responsibilities in respect of the accounts (continued)

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Trustee is 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.

The Trustee is responsible for the maintenance and integrity of the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Nottingham Community Almshouse Charity

Related parties

NCHA is the Sole Corporate Trustee of Nottingham Community Almshouse Charity. Its registered address, where consolidated accounts can be obtained, is 12-14 Pelham Road, Nottingham, NG5 1AP.

NCHA is registered as a charitable social landlord under the Co-operative and Community Benefit Societies Act 2014 and is registered with the Regulator of Social Housing. NCHA operates mainly within the East Midlands and has three regional offices and a number of satellite offices across the East Midlands. Its head office is in Nottingham.

NCHA’s principal activities are the management, maintenance, improvement and development of social housing together with the provision of care and support services for those people within communities across the East Midlands with additional needs.

Going concern

Statement of disclosure to auditors

So far as the Trustee is aware there is no relevant auditor information of which the auditors are unaware. The Trustee has taken all steps it ought to have taken as Trustee in order to make itself aware of any relevant audit information and to establish that the auditors are aware of that information.

The Charity’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for at least twelve months from the date at which these accounts were approved. The Trustee considers it appropriate to continue to prepare the financial statements on a going concern basis.

The Report of the Trustee was approved on 18 September 2024 and signed on its behalf by:

Sylvia Hart Clerk to the Trustee

Report of the Independent Auditor to the Trustee

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Nottingham Community Almshouse Charity

Opinion

We have audited the financial statements of Nottingham Community Almshouse Charity (the ‘charity’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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.

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Report of the Independent Auditor to the Trustee

Other information

The other information comprises the information included in the Report of the Trustee other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustee. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the Report of the Trustee; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities in respect of the accounts set out on pages 8 to 9, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.

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Nottingham Community Almshouse Charity

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory frameworks, that the charity operates in and how the charity is complying with the legal and regulatory frameworks;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

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Trustee, Advisors and Bankers

The extent to which the audit was considered capable of detecting irregularities including fraud (continued)

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the General Data Protection Regulations as set out in the Data Protection Act 2018 and the Health and Safety at Work Act 1974. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Report of the Trustee, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, reviewing financial statement disclosures and reviewing legal and professional costs incurred during the period.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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A further description of our
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at http://www.frc.org.uk/
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Nottingham Community Almshouse Charity

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 24/09/24

For and on behalf of RSM UK Audit LLP, Statutory Auditor,

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

RSM UK Audit LLP Statutory Auditor Chartered Accountants 10th Floor, 103 Colmore Row Birmingham B3 3AG

Statement of Financial Activities

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Nottingham Community Almshouse Charity

Statement of Financial Activities

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For the year ended Unrestricted Unrestricted
General Fund General Fund
31 March 2024
2024 2023
Note £ £
Income from
Maintenance contributions net of
832,138 688,678
identifiable service charges
Less voids (20,362) (22,389)
Donation 2 - 192,552
Other income 3 320 10
Interest receivable 3 32,904 28,492
Unrealised surplus / (deficit) on 9
10,400 (9,937)
revaluation of investments
Total income 855,400 877,406
Expenditure on
Management (139,751) (123,740)
Service charge costs (117,148) (78,000)
Repairs and maintenance (240,775) (311,906)
Rent losses from bad debts (5,183) (9,132)
Depreciation of housing properties 8 (109,957) (104,389)
Interest payable and similar charges 4 (11,131) (7,825)
Annuitants 5 (12,130) (11,440)
Total expenditure (636,075) (646,432)
Net income 219,325 230,974
Net movement in funds 219,325 230,974
Reconciliation of funds
Total funds brought forward 4,557,605 3,884,757
Permanent Endowment Revaluation 9 21,893 (15,996)
SHG transfer Blyth Cottages 2 - 457,870
Total funds carried forward 4,798,823 4,557,605
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The results relate wholly to continuing activities and the notes on pages 24 to 35 form an integral part of these accounts. The financial statements on pages 16 to 35 were approved and authorised for issue by the Trustee on 18 September 2024 and were signed on its behalf by:

Sylvia Hart Clerk to the Trustee

Signed on behalf of Nottingham Community Housing Association Limited (Sole Corporate Trustee)

Statement of Financial Position

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Nottingham Community Almshouse Charity

Statement of Financial Position

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As at 31 March 2024 2024 2023
Note £ £
Fixed assets
Tangible fixed assets 8 3,571,494 3,553,922
Investments 9 836,208 800,414
Total fixed assets 4,407,702 4,354,336
Current assets
Debtors 10 53,192 24,006
Short term deposit 326,552 46,552
Cash at bank and in hand 119,190 407,954
Total current assets 498,934 478,512
Creditors
Amounts falling due within one year 11 (107,813) (128,696)
Net current assets 391,121 349,816
Creditors
Amounts falling due after more than one year 12 - (146,547)
Net assets 4,798,823 4,557,605
Funds of the Charity
Unrestricted General Fund 3,338,615 3,119,290
Permanent Endowment 14 505,946 484,053
Social Housing Grant Reserve 13 954,262 954,262
Total funds of the Charity 4,798,823 4,557,605
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The notes on pages 24 to 35 form an integral part of these accounts. The financial statements on pages 16 to 35 were approved and authorised for issue by the Trustee on 18 September 2024 and were signed on its behalf by:

Sylvia Hart Clerk to the Trustee

Signed on behalf of Nottingham Community Housing Association Limited (Sole Corporate Trustee)

Statement of Changes in Reserves

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Nottingham Community Almshouse Charity

Statement of Changes in Reserves

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For the year ended Income and Social Permanent Total
Expenditure Housing Endowment
31 March 2024
Grant
£ £ £ £
Balance at 31 March 2022 2,888,316 496,392 500,049 3,884,757
Surplus from Statement of Financial
230,974 457,870 (15,996) 672,848
Activities
Balance at 31 March 2023 3,119,290 954,262 484,053 4,557,605
Surplus from Statement of Financial -
219,325 21,893 241,218
Activities
Balance at 31 March 2024 3,338,615 954,262 505,946 4,798,823
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The notes on pages 24 to 35 form an integral part of these accounts.

Statement of Cash Flows

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Nottingham Community Almshouse Charity

Statement of Cash Flows

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As at 31 March 2024 2024 2023
£ £
Cash flows from operating activities
Net movement in funds 219,325 230,974
Adjustments for:
Interest receivable (32,904) (28,492)
Interest payable and similar charges 11,131 7,825
Unrealised (surplus) / deficit on revaluation of investments (10,400) 9,937
Depreciation of housing properties 109,957 104,389
-
Donation from Blyth transfer (99,826)
(Increase)/decrease in debtors (29,186) 7,098
(Decrease) / increase in creditors (22,420) 57,408
Net cash generated from operating activities 245,503 289,313
Cash flow from investing activities
Purchase of tangible fixed assets (127,529) (145,773)
Interest received 29,404 25,297
Net cash from investing activities (98,125) (120,476)
Cashflow from financing activities
Interest paid (5,692) (6,289)
Newly secured loans - -
Loan issue fees (450) -
-
Repayment of borrowing (150,000)
Net cash from financing activities (156,142) (6,289)
Net change in cash and cash equivalents (8,764) 162,548
Cash and cash equivalents at the beginning of the year 454,506 291,958
Cash and cash equivalents at the end of the year 445,742 454,506
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The notes on pages 24 to 35 form an integral part of these accounts.

Notes to the Financial Statements

Legal status

The Charity is an unincorporated charity registered in England and Wales with the National Almshouse Association and the Charity Commission. The registered office is 12-14 Pelham Road, Nottingham, NG5 1AP.

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Nottingham Community Almshouse Charity

1. Principal accounting policies

(a) Basis of accounting

The Charity’s financial statements have been prepared in accordance with applicable United Kingdom Generally Accepted Accounting Principles (UK GAAP) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 October 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts are prepared on the historical cost basis of accounting except as modified by the revaluation of investments and are presented in rounded pounds sterling.

In applying FRS 102 the Charity meets the definition of a public benefit entity.

(b) Going concern

The Charity’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for 12 months from approval of these financial statements based on the levels of anticipated income, expenditure and the funds of the Charity.

(c) Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the Statement of Financial Position and the amounts reported for revenue and expenses during the financial year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on the amounts recognised in the financial statements:

• i. Categorisation of housing properties. The Charity has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the Charity has considered if the asset is held for social benefit or to earn commercial rentals.

• ii. The Charity has reviewed the useful economic lives of its housing properties and depreciates the property cost, less freehold land and residual value, for all housing properties.

Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Financial Activities. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. The Charity has identified a cash generating unit for impairment assessment purposes at a property programme level. Following a trigger for impairment, the Charity performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash generating units (properties) or observable market prices less incremental costs for disposing of the properties.

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Notes to the Financial Statements

1. Principal accounting policies (continued)

(c) Judgements and key sources of estimation uncertainty (continued)

The value in use calculation is based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Charity as the existing property. The cash flows are derived from the business plan for the next 30 years and do not include restructuring activities that the Charity is not yet permitted to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes. Following the assessment of impairment no impairment losses were identified in the reporting period.

(d) Turnover and revenue recognition

Turnover represents maintenance contributions income (less loss of maintenance contributions due to voids) and other charges receivable and other income and is recognised in relation to the period when the goods and services have been supplied.

Maintenance contributions are recognised when the property is available for let. There were 52 rent weeks during the year (2022/23: 52 weeks).

(e)

Loan interest costs

Loan interest costs are calculated using the effective interest method of the difference between the loan amount at initial recognition and amount of maturity of the related loan.

(f) Loan finance issue costs

Loan finance costs are amortised evenly over the life of the related loan. Loans are stated in the Statement of Financial Position at the amount of net proceeds after issue, plus any increases to account for any subsequent amounts amortised. Where loans are redeemed in the year, any redemption penalty and any connected loan finance issue costs are recognised in the Statement of Financial Activities in the year in which the redemption took place.

(g)

Provision for bad debts

A provision for maintenance contributions debts becoming irrecoverable is made against 100% of former customer arrears and 50% of current customer arrears for all customers more than six weeks in arrears.

(h) Corporation Taxation

The Association has charitable status and is exempt from UK Corporation Tax under section 531 of the Income Tax Act 2007.

(i) Value Added Tax

Nottingham Community Almshouse Charity is not registered for value added tax. In these financial statements, where applicable, expenditure is shown inclusive of VAT.

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Nottingham Community Almshouse Charity

1. Principal accounting policies (continued)

(j) Housing properties, depreciation and impairment

Social housing

The Charity has reviewed the useful economic lives of its housing properties and depreciates the property cost, less freehold land and residual value, for all housing properties other than those held on an investment basis. Housing properties were merged on the basis of historic cost.

Future estimated lives have been determined as follows:

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New build houses 100 years
New build flats and rehabilitated houses 75 years
Rehabilitated flats 60 years
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Where a housing property consists of two or more major components with substantially different useful economic lives, each component is accounted for separately and depreciated over its useful economic life. Expenditure relating to the subsequent replacement or renewal of components is capitalised as incurred.

Depreciation is charged in equal annual instalments over the assets expected useful economic lives. The useful economic lives for the identified components are as follows:

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Freehold land Not depreciated
Structure: new build houses 100 years
Structure: new build flats and rehabilitated houses 75 years
Structure: rehabilitated flats 60 years
Roof 50 years
Lifts 50 years
Windows and doors 40 years
Energy works 30 years
Alternative energy systems 25 years
Bathroom 25 years
Kitchen 20 years
Heating system 20 years
Disabled adaptations 20 years
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(k) Other fixed assets

All other fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on all non-housing property fixed assets, to write off the cost less estimated residual value over their useful economic lives on the following methods:

Other fixed assets

Equal annual instalments 10 years

The useful economic lives of tangible fixed assets are reviewed annually.

28

Notes to the Financial Statements

1. Principal accounting policies (continued)

(l) Fixed asset investments

The Charity holds fixed asset investments. These are shown at full market valuation at each balance sheet date. Any gains and losses on re-measurement are disclosed in the Statement of Financial Activities for the period.

(m) Social Housing Grants

In accordance with the Charities SORP (FRS 102), grants received from government have been treated as income and added to reserves. The fund is held separately from unrestricted reserves reflecting the possibility of a repayment demand in certain circumstances from the Regulator of Social Housing.

(n) Financial instruments

The Charity holds fixed assets investments, short term debtors and creditors, loans and cash as financial instruments. The method of measurement for fixed assets investments is detailed above. Loans are held at contractual value. Cash is held at current value.

Debtors and creditors without any stated interest terms which are receivable or payable within one year are recorded at the transaction price. Should any losses be incurred as a result of impairment, these would be immediately recognised as other operating expenses in the Statement of Financial Activities.

2. Donations

On 28 March 2023 the Charity Commission scheme for Nottingham Community Almshouse Charity (NCAC) was amended to incorporate the Charity Commission scheme for Blyth Cottages Charity. This resulted in the acquisition of the assets and liabilities of Blyth Cottages Charity. No consideration was paid for the acquisition which has resulted in a donation of £193k being received by NCAC in the year. The net assets acquired were as follows:

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2024 2023
£
-
Tangible fixed assets (housing properties) 526,103
Investments - 31,592
-
Short term deposit 10,541
Cash at bank and in hand - 111,298
Debtors - 626
Total assets - 680,160
Creditors - (29,738)
-
Social Housing Grant (457,870)
Total liabilities - (487,608)
Total donated - 192,552
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29

Nottingham Community Almshouse Charity

3. Interest receivable and other income

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2024 2023
£ £
Bank deposit interest 1,751 993
Investment income 31,153 27,499
Other income 320 10
Total 33,224 28,502
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4. Interest payable and similar charges

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2024 2023
£ £
Loan interest payable 5,692 6,289
Loan arrangement fee 5,439 1,536
Total 11,131 7,825
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5. Annuitants

----- Start of picture text -----
2024 2023
No. No.
The total number of annuitants at the end of the accounting period 23 23
£ £
The cost of annuitants in force at the end of the accounting period 12,130 11,440
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6. Net income for the year

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Net income for the year is stated after charging 2024 2023
£ £
Depreciation 109,957 104,389
Auditors’ remuneration (excluding VAT) in their capacity as auditors 11,850 6,655
Management fee to Trustee (including VAT) 133,396 109,611
Maintenance fee to Trustee (including VAT) 34,090 42,362
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30

Notes to the Financial Statements

7. Taxation

Nottingham Community Almshouse Charity is a registered Charity and is, therefore, exempt from liability to taxation on its income and capital gains.

8. Tangible fixed assets

----- Start of picture text -----
2024 2023
Completed - Completed -
housing housing
properties properties
(freehold) (freehold)
£ £
Cost
1 April 2023 4,650,978 3,815,984
Additions 95,309 145,773
-
Work in Progress 32,220
Disposal of components (17,083) (26,787)
-
Blyth Cottages Charity transfer 716,008
31 March 2024 4,761,424 4,650,978
Depreciation
1 April 2023 1,097,056 829,549
Charge for the year 109,957 104,389
Less disposals during year (17,083) (26,787)
-
Blyth Cottages Charity transfer 189,905
31 March 2024 1,189,930 1,094,084
Net book value
31 March 2024 3,571,494 3,553,922
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Work on Progress relates to the cost of energy surveys that are anticipated to lead to further costs for improvements over the next few years.

The net book value of assets held as security for loan balances at 31 March 2024 was £nil (31 March 2023 - £1,302,715)

31

Nottingham Community Almshouse Charity

9. Investments

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2024 2023
£ £
Market value at start of year 800,414 791,559
Accumulated dividends during year 3,501 3,196
-
Blyth Cottages transfer 31,592
Revaluation 32,293 (25,933)
Market value at end of year 836,208 800,414
The investment at market value comprises
Unlisted
471,753 (2023 - 471,753) M&G Multi Asset Fund Income shares 429,630 421,370
846 (2023 - 846) M&G Multi Asset Fund Accumulation shares 97,002 91,128
3,029 (2023 - 3,029) M&G Charifund Income shares 44,108 44,928
12,655 (2023 - 12,655) COIF Income units 258,584 236,858
26.78 (2023 - 26.78) COIF Accumulation units 6,884 6,130
Market value at 31 March 2024 and 31 March 2023 836,208 800,414
Cost at start of year 1 April 2023 308,824 274,036
Accumulated dividends during year 3,501 3,196
-
Blyth Cottages transfer 31,592
Cost at end of year 31 March 2024 312,325 308,824
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Investments are revalued annually using the price as at 31 March and gains and losses arising are recognised in the Statement of Financial Activities.

10. Debtors

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2024 2023
£ £
Maintenance contribution receivable 26,183 19,021
Less provision for bad debts (15,739) (10,791)
Amount due from the Trustee 27,141 -
Other debtors and prepayments 15,607 15,776
Total 53,192 24,006
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32

Notes to the Financial Statements

11. Creditors: amounts falling due within one year

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2024 2023
£ £
Maintenance contributions received in advance 17,677 13,707
Amount due to the Trustee - 52,393
-
Loan issue cost within one year (1,536)
Other creditors and accruals 90,136 64,132
Total 107,813 128,696
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12. Creditors: amounts falling due after more than one year

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2024 2023
£ £
-
Housing loans including loan finance issue costs 150,000
-
Loan finance issue cost (3,453)
Total - 146,547
Housing loans are repayable in instalments falling due as detailed below
-
In less than one year (1,536)
-
Between one and two years (1,536)
-
Between two and five years 148,083
- -
In five years or more
-
Total housing loans 145,011
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The Svenska Handelsbanken loan, taken out in June 2021 for £150k, was repaid in full during the year ended 31 March 2024.

33

Nottingham Community Almshouse Charity

13. Social Housing Grant Reserve

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2024 2023
£ £
Social Housing Grant 954,262 496,392
-
Blyth Cottages transfer 457,870
Total Housing Grant 954,262 954,262
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14. Permanent endowment

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2024 2023
£ £
Opening balance 484,053 500,049
Revaluation of investments 21,893 (15,996)
Closing balance 505,946 484,053
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The permanent endowment is held for the purpose of generating income to cover the payments of annuities in perpetuity.

15. Capital commitments

At 31 March 2024 and 2023 there were no capital commitments.

16. Contingent liabilities

At 31 March 2024 and 2023, there were no known contingent liabilities.

17. Housing properties and maintenance contribution

The number of properties managed as at 31 March 2024 was 160. (2023 - 160).

18. Ultimate controlling party, staff costs, directors’ emoluments and related parties

Nottingham Community Housing Association Limited is the Sole Corporate Trustee of Nottingham Community Almshouse Charity. Its registered address, where consolidated accounts can be obtained, is 12-14 Pelham Road, Nottingham, NG5 1AP.

Nottingham Community Housing Association Limited (NCHA) is registered as a charitable social landlord under the Co-operative and Community Benefit Societies Act 2014 and is registered with the Regulator of Social Housing. It was first registered on the 22 March 1973 for the benefit of the community. NCHA operates mainly within the East Midlands and has three regional offices and a number of satellite offices across the East Midlands. Its head office is in Nottingham.

NCHA’s principal activities are the management, maintenance, improvement and development of social housing together with the provision of care and support services for those people within communities across the East Midlands with additional needs.

34

Notes to the Financial Statements

18. Ultimate controlling party, staff costs, directors’ emoluments and related parties (continued)

Services are secured from the ultimate parent. The key employees of the ultimate parent are its Executive team:

----- Start of picture text -----
• The NCHA Group Leadership
Paul Moat • Corporate Governance
DMS, MBA, MRICS,
• Risk
BSc (Hons)
Chief Executive • Health and Safety
• Marketing Communications
Allan Fisher BSc Holly Dagnall Naomi David
(Hons), PG (DIP), BA (Hons), PG Dobraszczyc Langhorne
MSc BA (Hons) ACA
(DIP), MSc Bsc (Hons)
Director of
Director of Director of Director of Assets
Finance and
Development Homes and and Property
Resources
and Sustainability Wellbeing Services
• Development • Affordable Social • Finance • Direct Maintenance
• Sales Housing • People Services
• Pelham Architects • Sub Market Rent • Technology • Planned Investment
• Environmental • Shared Ownership • Transformation • Asset Management
Sustainability • Care and Support • Procurement • Work Planning
• Almshouse Charities • Information and and Operational
• Equality, Diversity Intelligence Support
and Inclusion • Value for Money • Systems
• Social Impact Improvement
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The Directors of the Sole Corporate Trustee are the key management personnel of the Charity. They receive no payment for their role in the Charity.

The Charity receives management and financial services from NCHA. These services include the handling and settling of the majority of Nottingham Community Almshouse Charity’s invoices on behalf of the Charity and NCHA recharges the Charity for the invoiced amount. The Charity paid £133,396 for the management by the Trustee (2023 - £109,611) and £34,090 for the maintenance by the Trustee (2023 - £42,362). At the end of the accounting year there is a debtor balance of £27,141 receivable from NCHA (2023 - £52,393 payable to NCHA).

35

Nottingham Community Almshouse Charity

19. Post balance sheet events

We consider that there have been no events since the financial year end which have a material effect on the financial position of the Charity.

20. Financial instruments

----- Start of picture text -----
2024 2023
£ £
Assets measured at fair value
Investment 836,208 800,414
Assets measured at amortised cost
Maintenance contributions net of provision for bad debt 10,444 8,230
Amount due from Trustee 27,141 -
Other debtors and prepayments 15,706 15,776
Cash at bank and in hand 445,742 454,506
Total 1,335,142 1,278,926
----- End of picture text -----

Liabilities measured at amortised cost	Liabilities measured at amortised cost	Liabilities measured at amortised cost
Loan fnance falling due after more than one year	-	146,547
Loan fnance falling due within one year	-	(1,536)
Amount due to the Trustee	-	52,393
Other creditors and accruals due within one year	90,136	64,132
Total	90,136	261,536

0800 013 8555 www.ncha.org.uk [e-mail]

/NottinghamCommunityHousingAssociation

An electronic version of this report can be found on our website, www.ncha.org.uk

Nottingham Community Housing Association Limited is a charitable community benefit society, registered with the Financial Conduct Authority under number 7104.

Published September 2024